Although the pandemic has wreaked havoc on the national economy and destroyed the average household budget, not everyone has felt the same effects. It’s a strange phenomenon, but the economic doldrums that the country has faced and continues to face doesn’t affect everyone in quite the same way.
Of course, it’s tempting to simply assert that people who were less impacted by the economic recession caused by the pandemic had a comfortable financial cushion in the first place, but this assumption is not always true. Average working people who made ends meet without incurring debt did so because they knew enough about personal finance to avoid making a bad situation worse.
Financial success is rarely an accident and it’s not always a natural consequence of earning a six or seven-figure income. Often, financial success can occur because someone knows how to apply practical money management techniques. As an NBC News article points out, with good money management skills, it’s not only possible to survive in tough economic times but even to thrive.
3 Ways to Improve Your Personal Finances
In a pandemic, a global health and economic disaster larger than any other catastrophe that most people face in a lifetime, here are three principles suggested by Taft Financial, a financial institution that helps consumers with debt restructuring that can help you keep your head above water as the tides of unprecedented change sweep over the country.
1. Pay off All Your Bills at Once
The problem with most bill repayment methods is that they are too slow. As they drag on, they exhaust your patience and prosperity, draining your energy with their incessant demands on your time, attention, and financial resources. Similar to a snowball rolling down a hill, the size of a debt seems to grow as interest rates, penalties, and fines accumulate, making it increasingly difficult to pay down the principal.
If you are experiencing high debt, a straightforward way that your family can end this monthly struggle with money issues is to get a consolidated loan, one large enough to pay off most, if not all, your debts. Now instead of paying many bills throughout the month, you will only pay a single bill once a month; and now instead of paying many high-interest rates, you’ll pay a single lower interest rate.
2. Build a Digital Empire
Before the Internet, the idea of generating money without leaving your home was a ridiculous proposition, an untenable and unrealistic scheme. But we now live in a different age, a digital age where you can use artificial intelligence and automated software to do much of the heavy lifting when running a business. Despite the pandemic, Marketing Tech News shares many inspiring stories of how digital businesses are successfully embracing and adapting to change.
There are many digital opportunities available online. For instance, you can run an entire storefront without leaving your home, leveraging legitimate digital business opportunities like Fulfillment by Amazon (FBA) to run your own eCommerce enterprise. And that’s just one business model out of hundreds. Before getting started, research a proven business model that suits your knowledge, skills, experience, temperament, and natural talents.
3. Learn a Few Simple Money Rules
Money is a complex financial instrument, so complex, in fact, that people who want to get good at managing money, either for themselves or future clients, often have to earn an advanced degree in economics or finance.
But this is only true of high finance. Personal finance is another matter altogether. It’s far simpler. Essentially, all you have to do is learn a few fundamental rules about earning, spending, saving, and investing. While the rules around each of these financial buckets are not always intuitive, they are learnable, and there are many online personal finance guides that can teach you how to manage your money well.
Even in the worst financial crises, some people, average people with modest salaries, manage to cope, even thrive, because they know how to handle their money well. Some practical ways to improve your household finances are to pay your debts off more effectively, start a digital side hustle, and most importantly, learn the art of personal finance.