Simple Ways to Cut Back on Unnecessary Spending

Simple Ways to Cut Back on Unnecessary Spending

Money is a major source of stress in our lives, and it just never feels like there’s enough to go around and cover costs. Looking for ways to cut back on unnecessary spending to gain some financial freedom? Ready to make small lifestyle changes to increase your savings and pay off debt? Read on.

You’re Dealing with Debt

One of the reasons that someone might look to cut back on their spending is to increase the amount of money they put towards their debt repayment. For those with large sums of student or credit card debt, the knowledge that you need to make these payments can be stressful. For one, you don’t know how to handle all your payments.

What’s more, debt collectors can be aggressive and sometimes downright intrusive. For financial assistance from qualified financial professionals like Licensed Insolvency Trustees (formerly known as bankruptcy trustees) and credit counsellors, click here for more info about the steps you can take to address and eradicate your debt. With their help, you can establish a debt recovery plan and put a stop to those debt collection calls.

Use Public Transportation

There’s an unsavory quote from the “Iron Lady” herself, Margaret Thatcher, about public transportation. She once said that, “A man who, beyond the age of 26, finds himself on a bus can count himself as a failure.” For many of us today who are concerned about carbon emissions and saving the planet, taking public transportation can be a smart and socially conscious way to travel.

Some cities have more established transportation systems than others, so using public transportation is relative to your location. Still, taking public transportation is an easy way to save money on transportation while also relieving yourself of the costs that comes with car ownership.

Carpool or Use a Rideshare Program

If driving makes more sense that taking public transportation, then consider alternative ways of using a car. These days, people are getting creative with the ways that they share things like cars and homes, with a boom in the sharing economy seen through recent business booms from Uber, Lyft, and AirBnB.

To cut back on the costs that come with regular car payments, insurance, parking, gas, and maintenance — try using a ride sharing program that lets you easily rent a car whenever you need it. You can also carpool with coworkers or friends and split the cost of gas with each other, another way to reduce the amount of money you spend on a car.

Change Your Cell Phone Plan

Do you really need a phone that lets you check social media every hour? Are you paying for phone series that you don’t actually need, but simply use because you have them? You can save a lot of money by going for a bare-bones cell phone plan.

Look for minor carriers with good service that offer contract-less service. After all, we’re constantly hearing about all of the ways cell phones are bad for us. Scaling back on your mobile use will save your money while improving your health and happiness, too.

4 Unwise Financial Decisions to Avoid this Quarter

4 Unwise Financial Decisions to Avoid this Quarter

No small business owner deliberately mismanages their money. Indeed, even the worst financial decisions are made with the best of intentions. The unfortunate truth is though, plenty of entrepreneurs simply make mistakes when it comes to investing their working capital. However, there are ways you can mitigate against fiscal catastrophe –– and ensure your business stays on the right track. Here are four investment plays you should avoid like the plague:

Rapid Expansion

If your business has experienced substantial gains over the past couple of months, you may be tempted to expand your operation quickly. Opening up a new location, hiring new staff, or adding onto your current setup might sound great now during a period of high profits. But before you begin your expansion in earnest you need to be certain of your company’s sustainability. Jumping into new markets and spreading yourself too thin is one of the fastest ways a successful business can go bust.

Fads and Flavors-of-the-Month

The stock market –– like nearly everything else in our society –– is subject to fads and unpredictable trends that fluctuate wildly. One of the latest and most prevalent was the Bitcoin and cryptocurrency boom of the past few months. So though you may be intrigued by such an investment, understand that often your chances of striking it rich this way are slim at best.

Utilizing Personal Savings

You shouldn’t treat your savings account like a checkbook. If your business experiences a cash-flow problem, resist the urge to dip into your personal accounts before considering all other options first. Note that there are a wide variety of secured business loans that can benefit your company, and provide you with the funding you need. Plus, this way you can avoid gambling with your own personal funding.

Uniform Investment

No smart entrepreneur would put all their eggs in one basket. That’s why it’s essential to diversify your investment portfolio. Otherwise your entire financial standing could collapse with one bad turn. Make sure to spread your chips around to ensure you’ll never go bankrupt because of one bad decision. No matter how certain you are of success, always be cautious about an investment that could sink you. Because one day –– it might.

The Bottom Line

Regardless of your financial standing, you can always make wise decisions to improve your own situation –– and your business’s –– even while on a budget. Just remember to stay objective, calm, and avoid making any of the above mistakes. Do that, and you’ll be well on your way to fiduciary stability in no time!