Many people never seem to have any financial burdens. They know how to get a good job, keep it, get promoted, and continue to earn more money over time. They know how to invest, plan for taxes and the future, and they never miss any part of the good life.
Most people, however, do worry about money and ask how to achieve primary financial goals.
They want to know how to avoid major financial burdens that honestly seem to pop up everywhere.
Major purchases, such as buying a home, sending children to college, or saving enough for retirement seem like impossible dreams.
Here are some ways to cast off the heavy weight and breathe more deeply.
Big burden #1: Crushing, mounting debt
People with credit card debt know they shouldn’t be in the situation they’re in. Most understand that credit cards aren’t cash and that minimum payments made towards high APR-carried balances quickly grow out of control. In order to stop the financial burden of credit card debt, it’s important to pay off these bills.
Start by paying off the smallest card balance or the highest APR card, then retire the paid off card for good. And, in order to stop using credit cards as an emergency fund, it’s important to create that rainy day fund financial planners always recommend.
Big burden #2: Your car needs major repairs (you didn’t budget for this surprise)
Drivers sometimes pretend that their car doesn’t need regular maintenance. Their car is reliable and certainly won’t let them down. The 3,000-mile oil change recommended by the manufacturer isn’t really necessary – why, according to the TV news, most drivers can go five or ten thousand miles without changing fluids!
Car engines break without proper maintenance, and even the most “reliable” vehicles eventually scream for proper care. If the driver hasn’t got an emergency fund, doesn’t use credit cards (or is maxed out on the ones he has), can he afford a mechanic?
He’s likely to search for a cost-effective engine repair shop. Speedy Brake and Apollo Muffler in Calgary is an example of a car engine repair service that can help people manage a major financial burden, as well as teach them to avoid the situation in the first place.
Big burden #3: Your credit report is scary
Referring to the first big burden above, credit repair is something that everyone can do. Everyone should check their credit report at least once every twelve months. Note any errors in the credit file and write the credit reporting organization (CRO) about making necessary corrections.
Send documentation that supports the error and follow-up with the CRO in about a month. An improved credit score means the ability to purchase a home at a competitive mortgage rate.
Most people can avoid major financial burdens by living within or beneath their means. A dollar saved today can be invested in a better financial future.
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