Creating a Barebones Budget For When Times Get Tough
Most of us feel some kind of financial pressure at one time or another. It could be due to a special occasion like Christmas, it could be the result of a broken down car or appliance or a large, unexpected bill could fall through our letterbox. Either way, when you need money and it feels like you simply don’t have it it can be a stressful situation. You might be stuck without a car or without a washing machine, or you could have creditors on your back making threats of bailiffs and bankruptcy. When you’re feeling the pinch, one of the best things you can do is scale back everything in your life and free up whatever you can to go towards what you need to pay for. Even if you don’t have a whole lot of luxuries right now, chances are there are still ways you can lower your costs with a bit of planning and effort. Here are some ideas.
Get Tax Relief
Tax relief is a remission of a proportion of income tax that is normally due on your earned income. If you’re behind on your taxes then you could be subject to IRS wage garnishment, however there are ways around this. Because wage garnishment can be expensive, the IRS tends to be willing to accept less money than garnishing your wages which you can use to your advantage. Speak to a professional tax relief company to find out more and how this can save you money.
Consolidate Debt
If you’re paying lots of different creditors, you will be paying lots of different interest rates which can all add up. One way you can save yourself money is by taking out a larger loan and paying off everything else. Once you’re done, close all of the other accounts so you can’t spend back onto them. Consolidation loans often have an interest free period meaning you have a few months to make payments and bring the balance right down without any of the amount being eaten up by interest. When you only have one account to pay instead of many it can feel far more manageable too.
Use a Price Comparison Site
Chances are you already use a price comparison site for things like car insurance. But did you know you can use them for things like utilities too? Things like your gas and electric for example are always bills that you will need to pay, but you can make sure you’re paying the lowest rates possible. Better money in your pocket than these big companies!
Cancel Digital Subscriptions
Online streaming sites like Hulu and Netflix, music like Spotify and Google Play, shopping subscriptions like Amazon Prime and any magazine or website subscriptions you pay for can all be cancelled for a while when you’re looking to save money. These little luxuries aren’t essential and you can live without them for a while- use the money saved to go towards money you owe or need to pay elsewhere.