3 Tips to Avoid Taking a Financial Hit

 

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We all rely on money in this world for survival and to enjoy life.

It’s no wonder, then, that the small pieces of paper or numbers on a screen give us so much anxiety, as we’re entirely dependent on the ability of our finances to keep our lives in shape.

That’s why the financial crisis of the past decade was such a devastating blow for thousands upon thousands of families across the world.

Nobody wants that to happen again, and you likely don’t want to ever experience any sort of personal financial crisis either.

If you’re wondering what more you could be doing to protect your funds, here are some top tips for avoiding financial hits.

 

Write Up a Budget for Yourself

Everybody pretends they do this on a mental level as they weigh up purchases against their earnings, but many of us stray from any sort of rigid, strict boundaries.

Without a budget, you run the risk of spending before your means and resorting to borrowing money to cover the damage. When it comes to the millions who are living in debt, that’s usually how they find themselves in their predicaments.

If you want to steer clear from such a financially-crippling way of living, the simple answer is to budget smartly today and never have to worry about your expenses being larger than your income.

You simply need to work out the monthly costs of rent, utilities and food shopping combined (giving yourself a little extra buffer room) and work out how much disposable income you have for any given month to spend on luxuries and other non-essentials.

As a rule of thumb, it’s always good to leave a little extra as part of your emergency fund, should there ever be a day when an unexpected financial cost arises.

You don’t want to have to borrow money to cover unexpected expenses if doing so can be avoided.

 

Protect Your Job

Your financial security depends on your career, most likely, which is why protecting your job through hard work, punctuality and avoiding errors is of paramount importance to you.

You need to maintain professionalism in order to avoid being fired and losing the lifeboat that is your steady, consistent income source.

Of course, safety is also of importance in the workplace, and that’s definitely not something you should be overlooking; especially if you sometimes have to work on project sites for your company and are surrounded by dangerous machinery or equipment.

Whether you’re on such sites every day or only occasionally, you should look into gearing up appropriately.

You could look through this list of logger boots for starters, if you work on a timber or other construction site, as well as getting yourself a hard hat to protect your head and perhaps even reflective clothing if there’s evening work involved.

How does this protect your financial security? Well, you should be minimizing the risk of injury so as to minimize the possibility of taking time off work.

Recovering from an accident won’t only be physically painful but financially painful, as you may lose your source of income for weeks or months.

If you want to avoid a tricky financial situation, you should be practicing safety measures in your job, no matter how banal or non-dangerous your workplace seems.

 

Look After Your Car

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The reason many find themselves in financial trouble is that they fail to upkeep their car. If you have regular inspections to keep your car consistently and constantly in shape, then any issues will only ever be minor.

You should also drive economically and safely to avoid additional damage to your vehicle.

Failing to maintain your car could lead to bigger and costlier repair jobs; additionally, a full breakdown could prevent you from getting to your job, which would also affect your finances.

So what are you doing to protect yourself from taking a financial hit?  These are just a few things I’m doing, feel free share your thoughts and ideas in the comments section below.

Cheers!

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