The last year or so since the pandemic hit has been very eye opening for some people, especially when it comes to how they manage their finances. Unfortunately, money isn’t endless and for the majority of the world’s population, taking care of every penny you earn is essential. The pandemic has seen millions of people and families hit rock bottom with their finances due to job losses and the inability to keep up with contractual repayments set by lenders and providers.
Financial freedom is something that many people aspire to have one day, and it’s totally possible! So, while you may be dealing with some debt problems or trying to get your finances back on track, it’s not to say that one day you can’t achieve financial security. Here are some ways you can build towards financial security, starting this year in 2021.
Keep an eye on your credit score
Whether you realise it or not, your credit score can really help you when it comes to securing your financial freedom. Put simply, your credit score is a report of your financial habits. So, if you often pay your bills late, this will be reflected on your score. Using tools like Clearscore can help you regain control over your credit score and therefore, your financial status. Essentially, the more trustworthy you are with your money, the better your score will be and the more likely lenders will give you a loan or great mortgage rate.
Invest your money in smart ways
Investing money, even if not a huge amount, is a great way of building up a larger withdrawal in the future. Of course, there are many quick investments you could make such as investing in cryptocurrency, but this is still an area not many people are confident in. Instead, consider investing in other valuables like art, precious metals, property, or even stocks in a large business. That way, you can sell your investments later on for *hopefully* a tasty profit.
Speak to your providers and lenders
Being in debt is horrible, and sometimes it can seem like there’s no way out. It’s important to remember that your providers and lenders do have options available if you’re struggling to meet payment dates. Speaking to them directly to explain your current situation may lead to more lenience, whether that be reducing the amount you owe or giving you longer to pay it, it will help you climb your way out of debt the right way.
Another option is consolidating your debts into one place. This can be a great option for those who struggle to keep on top of every lender they owe. Just remember to do your research before committing to anything.
Vet your outgoings
Finally, sometimes simply going through your outgoings each month can open your eyes to the amount you’re spending! You may even find that you’re paying for an unused subscription or membership like the gym or a magazine subscription, which will allow you to cancel and save your money wherever possible. Do this regularly not only to check for accidental payments, but to make sure everything goes out as and when it should.
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