In the difficult financial times that so many of us are enduring these days, there has been a great deal of emphasis on finding creative ways to save money. From cutting back on driving costs, to shopping online, and even skipping the morning latte, there are all kinds of different tips out there for saving money. But, it is important to recognize that maximizing your savings is not the only way to attempt to cope with the current economic climate. There are also two other financial efforts that can be of great assistance: finding supplemental income, and erasing your debts.
Supplement Your Income
Finding additional income is easier said than done. After all, if there were easy ways to make extra cash, everyone would be taking advantage of them! However, there are a few ways to make additional money without putting in too much time or effort. For example, you might want to consider an investment opportunity or two. Many people looking for beneficial side practices with their finances turn to something considered fairly stable – such as gold investment at a site like BullionVault. The gold price charts at BullionVault make it relatively easy to keep up with the market, and the easy method of investing (you can buy, store, withdraw, and sell gold at any time, in any amount) make this a relatively easy investment. Meanwhile, the relative stability of gold compared to other stocks and investments makes it a low risk opportunity (though of course there are no guarantees). This is merely one example of a way that many people attempt to make a bit of extra money on the side.
Pay Off Your Debts
In addition to maximizing savings and seeking supplemental income, it is also necessary to attack your debts if you are going to get by in tough economic times. Debts can build up quickly, and the longer you wait to pay them off, the more they can increase with interest rates. That said, erasing debt can be a tricky process, and requires strategy and diligence. If you wish to make a concentrated effort to address your debts, you may want to consider the “debt snowball” approach.
Essentially, the debt snowball approach involves figuring out a budget each month that you can put toward paying off debts. You then arrange your debts from smallest to largest, and divide your budget among them to pay the minimum amount toward each debt every month. With whatever money is left over after this in your budget, supplement payments on the smallest debt, until it is eliminated. You can then repeat this process – without decreasing your overall budget – for each of the next smallest debts until they are all eliminated. In theory, you should be able to put larger and larger sums toward remaining debts each time one is eliminated.
This is a guest post by freelancer Jeremy Hammond, written on behalf of BullionVault.