As a small business owner, your personal finances often affect your business financial situation. If your finances aren’t in great shape and you’re dealing with stress, climbing your way back to financial solvency can feel like scaling Everest! But getting your finances back on track can start with a few simple decisions. Here are three relatively quick and easy things you can do to melt away some of that financial stress with which you’re struggling.
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1. Fix Your Credit Card Debt
It just boils down to this one simple fact: You are spending real money when you charge to your credit card. That’s not to say you should avoid charging your credit card. A line of credit can give you more flexibility to pace your expenses in a manageable way. However, it’s essential to be aware and responsible about credit card debt.
Keep that credit card debt to a minimum. Know how much you owe, be mindful of the interest rate you’ll be paying over time, and be cognizant of the penalties you may incur for late payment.
On the more positive side, it can be immensely helpful to spend some time researching which credit card fits best for your lifestyle. USAA credit cards, for example, offer a variety of rewards for different kinds of financial outlay, from extra points for gas money to cards catering specifically to U.S. military members and veterans.
2. Simplify Your Approach to Saving
The next crucial step to improving your finances is to simplify how you save. When money is tight, it can be so tempting to dismiss the notion of saving money away as an impossible dream. The trick may be as simple as allowing yourself to start small.
One excellent option to consider is a micro-transfer tool. Instead of forcing yourself to commit to a regular savings transfer every payday, a small sum savings tool will analyze your checking account continually, gathering data on both your income and your spending patterns. Small transfers of as little as one dollar will go across to your savings account, with money never transferred if you fall below a certain threshold.
It’s a gradual, gentle, and incremental approach to saving, and one of the easiest ways to build a nest-egg with minimal financial strain.
3. Live Below Your Means
Finally, one of the most powerful things you can do to improve your financial position may boil down to a simple decision to moderate your spending. For example, reducing your outlay on luxuries can offer up significant long-term peace of mind — sufficient to outweigh the enjoyment you’d get from that shiny new gadget, at least for the time being.
Getting your finances back on track needn’t mean austerity! It may just require taking a close look at where you spend your money and channeling your resources into areas that offer the greatest lifestyle reward.
Less Stress is Always a Good Thing!
No-one wants more stress in his or her life. These three simple approaches of good credit card practice, simplifying your saving strategies, and making the decision to live below your means can make a big difference in helping you build a healthier financial foundation. When it comes to your personal finances, just a few sensible changes now can add up to a greatly improved position in the long run.
