6 Tips To Get Out Of The Rut Financially

We all get stuck financially sometimes, but what can you do to get yourself out of a rut, especially one where money is involved. 

I was a single mother with 2 children, a mortgage I could just about afford, and a job that didnt pay me enough.  In the early days here are some of the things I did to help me get through the financial maze. 
It was one of the things that got me anxious about whether I was able to be a good parent, if I couldnt keep the roof over my children’s head. 
I was also looking at ways I could earn extra money, but stay at home to be around them. 
It is a very stressful and worrying time to have a lack of money to do the basics like pay bills, and purchase food.  Here I was in that situation, as my back was against the wall a few times.  I was just too stubborn and proud to ask for help. 

1. Get Help from a professional

If you are struggling with your finances, now is a good time to get a review done of your outgoings and income.  Having a new fresh pair of eyes on the situation can help you save where possibly you can see.  If you have a friend who you can trust, or go along to the bank, the staff there are happy to help you review your finances.
Wise up with your finances.  A great resource for me was Smart Women Finish Rich – David Bach a trusted financial expert.  You can go to his site Davidbach.com for some great tips on finance. 

2. Review / Reduce your outgoings

This is something I had to do when I lost a big chunk of income in my life.  I found going through my statements a really good way to see what I was spending money on.  It helped me to cut down on direct debits I ‘forgot’ about, the old gym membership that was ticking away each month, but I was not utilising it, other direct debits I totally forgot and for which they were not adding any value.  Reduced my Sky packages, and reviewed my telephone line deals, mobile deals, insurance deals.  I really started looking at all the ways I could save money and reduce my outgoings.

3. Put Savings Plan in Place

It doesnt matter how small your savings plan is, start by putting one in place now, even if it is £10 a week.   You can increase thisd when you get more income, but having something put down as a rainy day helps.  You can find some great savings plans online, just make sure you do the research. 

4. Look at your debt

When I looked over my 3 credit cards, and the size of the minimum repayments, this freeked me out. 
I took advice from the Money Supermarket site and looked at the credit card that had the highest interest rate, and began to include additional payments to pay this off first.
With the other two cards, I just kept paying the minimum amount (pro tip: set this up as a standing order so that you dont get charged for missed payments) on them until I paid off the card that had the highest interest rate. 
Once card 1, was paid off (took me 18 months), then I looked at the next highest interest rate and paid the same amount I was paying for the previous card  plus a bit extra to repay the second card down, this one I managed to reduce within 8 months. 
The final card I had more money due to not paying for the two previous cards, so this one I paid off quickly.
You can also call your card holders and negotiate a payment plan with them while you pay off for the other cards.  You can find out more by visiting here   www.moneysupermarket.com

5. Review Your Job Situation

If your current job is not paying you enough, then it it time to look for one that will.  Too often we under value ourselves, and our abilities. I know I did, until I was forced to upgrade due to ‘needing more’
I looked at my current skill set, and reviwed my Resume.  I then applied for other higher paid jobs, and ensured I upskilled myself at the same time.  I went into interviews with an air of confidence about me, and yes I got a higher paid job, which helped considerably. 

6. Look at Creating a Plan B

I didnt have a Plan B for if my partner suddenly walked out, that I could live independently without the salary. 
So, I quickly realised that I needed to put a Plan B in place. 
I was looking around to see what I could do to build residual income on the side, without jeopardising my full time job and this is where Network Marketing came into my live.
There are not too many areas that can generate residual income for you outside of
a) becoming an author (publishing rights)
b) becoming a produced of music (music publishing rights)
c) becoming a play right etc… you get the drift
Yes they all receive royalty  for writing, producing something ONCE, and if it is played, read, sold, they get paid over and over again.  That is residual income!

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