Recent research shows that nearly 47 percent of Americans don’t have access to $400 to pay for emergency situations like car repairs and medical treatments. This concerning statistic should convince everyone to pay more attention to financial security. Of course, people can only become more financially secure when they know how to reach that goal.
If you’re living from paycheck to paycheck, use these five strategies to build financial security.
Find a Budget That Matches Your Income
Image via Flickr by bradipo
Setting a budget used to take a lot of time and energy. Luckily, today’s technology makes doing so relatively easy. Start by downloading the most effective budgeting apps to your mobile device. Apps that get excellent reviews include the following:
- You Need a Budget
These apps will help you create a budget that lets you pay your bills and set money aside for the future. Even the most powerful app, however, can’t save money for you. You have to take responsibility by following the plan. As long as you do that, you should find that you save more money so that you can build financial security.
Earn Money Selling Amway Products
If you don’t have enough income to cover life’s expenses and set money aside, it’s unlikely that you’ll ever become financially successful. That’s why you should make extra money by working with Amway.
People who sell Amway products work independently. The more you sell, the more money you make. That gives you more control over your income than relying on a regular job that pays by the hour.
If you haven’t looked at Amway’s products in a few years, you might be surprised to learn that the company has built its inventory to include a wide range of product categories and brands, including the following:
- Hair care products
These are things your friends and relatives already buy. If you convince them to buy them from you, you’ll make extra money to put in your savings account. Plus, you’ll become self-employed, which means you have even more control over your finances.
Reduce Your Expenses
Reducing your expenses will also help you save more money. No matter how frugally you live, there are places where you can cut back on how much you spend and put more money in savings.
- Carpool to work.
- Lower your water heater’s temperature.
- Resist the temptation to eat out too often.
- Look for cheaper health and auto insurance plans.
The more you can lower your expenses, the more money you’ll have to put in a savings or investment account.
Take Advantage of Tax-Free Retirement Accounts
Taxes can eat up a significant portion of your income. You can lower the amount of money Uncle Sam takes by putting more of your money into tax-free investment accounts. Most people find that a Roth IRA or 401(k) works well for them.
These accounts do a lot more than just help you avoid taxes. They accumulate wealth exponentially over several decades. The sooner you start siphoning more of your money into them, the more money you’ll have when you retire.
Pay Off High-Interest Debt
If you have any high-interest debt, paying it off as soon as possible will help you build financial security. Many credit cards charge 20 percent interest or more. High interest rates can sabotage your ability to eliminate your debts.
Devote as much money as possible to lowering high-interest accounts. Doing so might save you thousands of dollars in the long run.
You can also contact your credit card company to request a lower interest rate. Even a few percentage points will make it easier for you to get out of debt. Once you’ve eliminated the debt, you’ll have more money to put toward savings. You’ll also improve your credit rating, which can help you qualify for low-interest loans when you buy a house or car.
Building financial security requires a sacrifice. You must either earn more money or reduce your outgoing expenses. Ideally, you’ll choose both so that you can boost your income and earn interest from your retirement accounts. No matter how much effort it takes, you’ll thank yourself for finding financial security.