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Take Control of Your Finances in 2021 with These Helpful Ideas

When it comes to our finances, it can feel like we’re in a vicious cycle of spending and debt. It’s not always easy to maintain our current lifestyles and more of us than ever before are stripping back on luxuries as a way to keep control of our spending and keep debt at bay. But, there must be another way to take control of your finances, right?

Managing your money doesn’t always have to mean cutting back on the things you love. Sometimes, simply revisiting your budget is an easy yet effective way to see how you can hold onto more of your money each month. If you’re someone who is really struggling with their debt and is facing potential bankruptcy, reach out to Creditfix as soon as possible to discuss your options with one of our helpful and experienced advisors. 

Why not make this new year the one you finally gain control and build your financial confidence? Read on for how you can take control of your finances in 2021. 

Create a rainy-day fund
When we’re prepared for the unexpected, we have one less thing to stress about. And the same logic applies to your finances. The more ready you are for those financial mishaps and expenses the better you’ll sleep at night. Start by creating a rainy day fund and make sure you’re including it in your monthly budget expenses. 

How much you can afford to place in your fund is up to you, just remember to add to it! Sudden car repairs, broken appliances, a job loss or change in your living circumstances could have devastating consequences for your finances, plunging you into a spiral of debt that may be difficult to get out of - a rainy day fund gives you a much-needed safety net. 

Update your knowledge 
Unfortunately, financial literacy isn't taught in schools. Which means most of us hit adulthood with little knowledge of how to create a budget, handle money, prevent debt, or apply for a mortgage etc. Updating your financial knowledge by reading articles and even listening to podcasts on certain financial subjects can give you the information you need to make better financial choices in the future.

Pay off those credit cards
Credit card debt can hang over us for months and even years, making it difficult to break the never-ending cycle of debt. By paying off your credit card debts as soon as possible, you won’t be stung by rising interest rates and only pay off what you originally borrowed. Again, reach out to Creditfix if you need further guidance.

And finally, set a savings goal
Want a new car? Or do you have dreams of owning your own home one day? Whatever your financial goals may be, the sooner you start saving for them, the better. This savings goal should be separate from your emergency fund, however, it will also provide an additional financial safety net should you need one. Don't forget to include your savings in your monthly budget. 


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