Stretching Your Income in Uncertain Times
The extent of the changes in the global economy over the past two years cannot be overstated. Over 6 million people were killed by a virus that seemed to arise out of thin air and spread over the world.
Devastating consequences of the pandemic were also experienced by financial markets, earnings, employment, and other facets of daily life. Global stock markets initially declined, resulting in equity investors losing their capital.
Revenues and employment, on the other hand, have not fully recovered yet. One of recent history’s most uncertain times is represented by the pandemic. Others might show up in the form of an unexpected sickness or job loss, among other things. This is why it’s important to be financially prepared in times like this.
How to Stretch Your Income in Uncertain Times
Making thoughtful purchases is one of the best strategies to stretch your income. On the internet, there is always the chance to make a purchase or to be persuaded to spend money you don’t have. The struggle to cut back on unnecessary expenditure while trying to stretch your budget is one of the most difficult obstacles to overcome. Because of this, it’s crucial to stick with your plan and continue to invest, save, or spend money with a purpose. These are the compromises we must all make in order to stretch our money as far as possible.
While it may feel difficult to stick to your budget during great economic times, doing so is even more challenging in uncertain times. If you neglect to put your necessities first and give in to your wants, you won’t be able to stretch a dime. Follow these strategies for how to stretch your income in uncertain times.
1. Evaluate your monthly spending habit
The best course of action would be to assess how your spending affects your monthly spending plan. You must first establish a monthly budget before you can do that.
When you don’t maintain a record of your household income, expenses, and regular loan payments, managing your finances gets difficult. Continually use a direct but thorough approach. Include all of your income and expenses in your budget. It is simpler to identify and cut back on unnecessary spending when you have a well-planned budget.
2. Buying in bulk
Bulk purchases are beneficial in two ways. First, since stores typically charge more for smaller amounts, you can buy more for less money. The second benefit is that you spend less time shopping.
When you buy in bulk, you may also get financial peace of mind by knowing that you have enough food and essential supplies to last you a few weeks before the next purchase, freeing up your attention to focus on other important things.
3. Build Your Reserves
Make sure to divert any extra income flow to savings once you’ve reduced some of your discretionary expenditure. Your emergency fund should ideally contain enough money to build up a cash reserve equal to 3 to 6 months’ worth of expenses.
4. Look for More Cash Inflows
Having extra money is helpful, right?
Finding a secondary source of income provides a safety net, whether it be a side hustle, a temporary position, or a work from home opportunity. Grab such an opportunity in order to stretch your income further and have access to more funds.
5. Build Your Financial Knowledge
Making the most informed financial decisions requires that you give yourself enough time to fully grasp how to handle your money.
Take some time each week to expand your knowledge of finances. You can dedicate 20 minutes a day to learning about money management, or an hour on weekends. Knowing your financial situation better will help you create a strategy to navigate through tough times and build a solid basis for your future.
How to Manage Your Debt in Uncertain Times
You need not worry too much about your multiple debts as there are opportunities put in place for Canadians to manage their debts in uncertain times. Consider these options.
Consumer Proposal
A consumer proposal is an agreement you reach with your creditors. It serves as a structured payment plan as well as a method of debt forgiveness. Most unsecured debts may be included in a consumer proposal, but secured debts like an auto loan or mortgage are not.
A professional debt expert can assist you in determining your earnings, expenses, assets, and liabilities when you consult with them. Based on this, they will calculate and reduce the debt, giving you a monthly payment plan that stops all interest and can be paid over a term of up to 5 years or sooner.
Debt Consolidation
The process of taking out a new loan to pay off other debts is known as debt consolidation. A loan is created by combining several smaller loans into one debt with better terms for repayment—a reduced interest rate, a smaller monthly payment, or both. Student loans, credit cards, and other types of unsecured debt can all be managed through a debt consolidation if the financial institution allows it.
Credit Counselling
Credit counselling is a procedure in which professional counsellors assist debtors with debt settlement using resources including financial education, budgeting, and assistance in order to minimize and eliminate debt. A licensed counsellor can help you identify the best course of action for your circumstances and can guide you in the correct way.
If you are unsure where to begin and would like some guidance or information, please contact EmpireOne Credit Solutions. With the assistance of our experienced debt experts, you can regain control of your finances. They will help you with a workable payment plan, with one monthly payment and stopping all interest. Giving you financial freedom in these uncertain times.
