As we saw in our 31 Days to Your Happiness series, money can buy experiences which make us happy. Keeping that money organized is essential. Check out these great ways to maintain financial happiness in your life.
One of the most stressful situations is when you don’t have enough money to pay your bills. You get into debt and it keeps on building. You cannot experience happiness when you are in this situation. It’s time to get yourself out.
3 Way to Maintain Financial Happiness
The first step is to find ways to consolidate your debt. You can try to take out a standard bank loan. The interest rate will be lower than the credit card rates. The downside to this is it may be difficult to get the loan approved. The bank’s loan officer is going to ask some tough questions regarding why you got yourself into that financial situation in the first place.
A better alternative is to take out a home equity loan. This usually comes at a lower rate than a bank loan and is much easier to get approved. Another advantage is that you may be able to write off the interest on this loan. Talk to a qualified accounting professional for information regarding the tax ramifications. Another benefit with this type of loan is you may be able to get more than what you owe in credit card bills. This can help to build up an emergency fund. Be sure to use this cash for that reason only.
Create A Budget
After you get a handle on your debt, the next step will be to create a budget for your household. This is a very important aspect of getting your financial house in order. You do this by first listing out all of your expenses. Then, you figure out how much money is coming in. If the amount that is coming in is less than the expenses, you’ll need to figure out how to come up with the difference. Otherwise, you will eventually get into financial hot water once again. You may have to work an extra job or you could look for some freelance work online. The goal is to get the amount coming in to be more than what is going out.
Your household budget is a lot like your business budget. If you’re not sure where to start, grab my 7 habits that every great business owner uses to create more money in your business! Just click the image below.
A budget is also going to show you what purchases need to be scaled back. Take a look at all of your subscriptions and see what can be eliminated, or at least, reduced. If you have three movie channel subscriptions, try scaling that back to one. Many people find they have subscribed to things and don’t realize they are still paying for them. Those are the first to go.
Get Financial Support
One of the best ways to keep on your budget plan and maintain your financial happiness is to get a support network to keep you accountable. This could be a spouse or other trusted adult with good financial habits. Check out the information by Dave Ramsey on financial peace. It’s very down to earth and insightful.
You can read all of the past posts from our 31 Days to Your Happiness challenge here.