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5 Tips for When Money is Tight

Money problems cause stress in the home and they can lead to tension and even divorce if they continue too long. Don’t ignore financial problems. Instead, adopt a proactive attitude that puts you in charge of your future. Learn from the following tips to get the help you need right now.

Write it Down

Tight MoneyGet a handle on family spending by recording every single transaction. Imagine trying to repair a leaking bucket… first you have to locate the leak! So once you know where your money is going you can decide which are necessary expenditures and which ones are just leaks. Regardless of whether you spend money on coffee, fast food, or allowances for the kids, make a record of it. As you become more conscious of your spending, you will probably discover immediate ways to save money. Don’t stop keeping records, because you can use the information you collect to create a budget. When you know how much money you need, you can more precisely target your remedial action.

Eliminate Debt

Credit card interest is a major leak that too often requires a substantial chunk of a household’s income. Interest charges and late fees are a senseless waste of money. You are paying money and getting absolutely nothing for it except immediate gratification. One of the best skills you can learn is “delayed gratification”. Studies show that those with the greatest self-control are much more likely to lead successful lives in the long run.

Of course if you are in a tight financial situation, you might not be able to pay down your debt right away, but you should start making at least token payments (above the minimum) toward paying off those bills. Plus whenever you get a larger than normal chunk of money, such as a tax refund, gift, bonus, etc. you should pay down your debt rather than spending the money on something that will be worthless in a few months. Plus any pay raises should go toward paying off debt and then building an emergency fund before you start spending on an increased lifestyle.

Crowd Sourcing

One creative way to pay off debt would be to seek help from other people. Companies such as Move Your Mountain can give you a chance to get help the same way many businesses do. You have an opportunity to explain your situation and state the amount of money you raise and let a community of contributors help you out. Be sure to tell them how you plan to prevent getting into this situation again.

Earn Extra Money

Get creative and find ways to make extra money. After all, you can’t always count on the community to bail you out. Extra income will help stabilize your financial situation now and in the future. Consider everything from having a garage sale to selling stuff on online auctions. Depending on your situation, you might have a chance to work a part time job.

Learn Good Money Habits

Many people never learned how to manage money as a child or teenager, so the problem becomes more difficult once they become an adult. The sudden responsibility of paying for an entire household can strain such inexperienced people. Community organizations often offer free or low-cost financial management classes and seminars that can give you the knowledge you need to make better financial decisions. Spend time learning and you will build a better future for your family.

Families with money problems can face stress and experience relationship problems. Meanwhile, tight financial conditions can cause embarrassment and missed moments for making memories. Use the five ways listed above to get control over your situation and start on your road to recovery.

 

About Tim McMahon

Work by editor and author, Tim McMahon, has been featured in Bloomberg, CBS News, Wall Street Journal, Christian Science Monitor, Forbes, Washington Post, Drudge Report, The Atlantic, Business Insider, American Thinker, Lew Rockwell, Huffington Post, Rolling Stone, Oakland Press, Free Republic, Education World, Realty Trac, Reason, Coin News, and Council for Economic Education. Connect with Tim on Google+