What do you do when cash is tight and work is slow? We’ve all been feeling the effects of 2020 and as things slowly begin to pick up, the one thing that might not be as quick to pick up is the money back into your wallet. This can leave you feeling a bit stressed, so what do you do if you are in this situation? Here are the four money moves you should make if cash is tight.
Balance Transfer on Credit Cards
Are you carrying around some credit card debt? Do you have some bills that you’ve had to start paying with a credit card? If your balances are growing and not being paid off as quickly, act immediately and consider a balance transfer to a new card. There’s no reason to pay interest on these balances and owe more money than you have to. Be sure to check out low rate credit cards that offer a 0% introductory period so you can form a budget and work on those credit card habits moving forward. This will help you as you navigate your new income level or as you start earning more cash in time.
Refinance an Auto Loan
This is one of the easiest and quickest ways to free up some cash if money is tight. Refinancing an auto loan can be done from your phone and takes no more than 10 minutes. When you refinance an auto loan you replace a loan with a new one. Normally the new loan has terms that are more favorable, for example, either you’ll pay less in interest (bringing down the payment amount) or negotiate new terms which can save you more money in the long run. One thing to consider when refinancing is your credit score, ask yourself: is it better than when you first applied for your auto loan? Make sure it has improved so you can qualify for the best rate.
Open a Home Equity Line of Credit (HELOC)
Have you owned your home for a while? If so, you most likely have some equity that can be taken advantage of. Even though a HELOC is technically borrowed money you have to pay back the reason it can help you when money is tight is simple. Even though a HELOC includes interest, sometimes the interest paid on the amount is much lower than those of a credit card. Do some research and consider this option when paying down debts. The other helpful thing when using a HELOC is that the payments may also be lower month to month which can help relieve some stress when dealing with bills, debt, and money.
Form a Budget
You would be surprised just how helpful creating, maintain, and sticking to a budget can be. Forming a budget can help you visually organize your finances and help you see if there are any places in your spending that can be cleaned up temporarily. For example, you may find that you’re overpaying for subscription services you don’t use or spending too much on take out. Whatever the case may be, having a budget is extremely helpful not only when cash is tight, but just for everyday living as well.
The feeling of stress when money is tight isn’t fun. It can feel like a big weight is sitting on your shoulders, but it doesn’t have to be this way. Start with these easy tips to free up some cash and gently lift that weight off your shoulders.