How To Avoid A Financial Snowball

How To Avoid A Financial Snowball

April 19, 2018 Off By Jess

This is a collaborative post and may contain affiliate links.

It can be way too easy to put off important parts of life for another day. When something is stressful or hard to manage, a lot of people struggle with tackling it right away. I’m basically the queen of putting things off until the last minute, especially when it’s an adulting thing that makes me feel really stressed. The downside is that it can cause things to pile up really quickly and then I have six stressful adulting things to do all at once. I’m particularly really bad about this when it comes to finances, so here are some tips for avoiding financial matters piling up!

Handle Things Quickly

When a big financial problem comes up, it will almost always get worse if you sweep it under the rug for another day. To avoid the problem getting worse, set aside one day each week to review your finances and tackle any problems that may come up. With a dedicated day in place, it will be easier to avoid stress while still handling your money correctly.

Monitor Closely

Making sure that you’re not overspending takes more than simply estimating what’s in your account. You need to stay on top of what you’re doing and closely monitor what you’re spending to make sure that you’re not spending too much. Most banks provide an app that will show you your current balance or warn you if your account is getting low. While those are really great, it’s really important to also track your monthly spending outside of an app. Not all payments will show in your account right away, so your balance on a bank app may not be completely accurate.

Get Support

The support you can get regarding finances is seriously staggering. Banks, blogs (heyyy 😉), friends, family, financial professionals, and even some charities are all lined up to offer you advice and point you in the right direction. When something feels overwhelming enough to make you stressed, having someone else to help you with it will make a big difference.

Getting support can be as simple as googling a question. I can almost guarantee that plenty of answers from qualified individuals or websites will show up. Just make sure you check a few sources to make sure the answer is correct.

Control Habits

We all have our own spending habits, and sometimes those habits are not financially healthy. I go to Target to get lactose free milk and leave spending $200 on candles. Over time, spending habits only get worse if you don’t get a handle on them early, and they can really impact the rest of your finances.

Start recognizing your habits by looking for trends in your spending, and then make small strides to correct your habits. I got myself into the habit of always asking myself if something is on my list and if it’s not, then I don’t buy it. End of story. Last time I went to Target, I spent $14 and the only thing I got that wasn’t on my list was some goldfish for my kiddo.


Restrict Yourself

Restricting your spending is another great way to make sure that you don’t find yourself in a financial snowball. A lot of people ignore this, assuming that they’ll be able to keep a budget in mind. This rarely works though, and it can be much better to take an approach which involves keeping an active record of your spending.

If you want to be able to still treat yourself while restricting your spending, set aside a certain amount each month that can be for whatever you want. Maybe set aside $25 for when you want to make a random stop at Starbucks or buy that super cute shirt that’s on clearance. The important thing is to stick to that amount. Once that $25 is spent, then you’re back to your restricted budget.

Consolidate

If you have a lot of loans or a significant amount of debt, you may want to consider consolidation. Loan or debt consolidation can be a helpful way to reduce your monthly payments or lower your interest rates. It can also be a helpful step in the direction of getting out of debtBefore you commit to anything, just make sure that you do your research and confirm that it will be beneficial in your particular situation.

Hopefully, this post will inspire you to take steps to avoid a financial snowball. Managing your finances isn’t always easy, but it will pay off in the long run. It’s always best to take steps to improve your finances and stay on top of your spending.

Disclosure: This is a collaborative post, which means that I may have received compensation in exchange for sharing links within this post. Additionally, this post may contain affiliate links, which means that I may receive a commission if you click a link and purchase something that I have recommended, at no additional cost to you. I value your trust and only recommend brands and products that I truly love! Read my full disclosure policy here.