Financial Management: The Path To Wealth Or Debt
One of the most common occurrences in life is debt. Many people struggle to stay on top financially. Meanwhile, many often wonder what separates the few people who always manage to keep their cash flow strong.
Most debt comes down to one simple factor: The management of your finances. Correctly navigating the balance between your income and outgoings is often the difference between debt and prosperity.
This is because most loans or bills work through penalizing late or missed payments. This means debts can quickly mount up and become unmanageable.
Loans, bills and other expenses can often be overlooked or forgotten too. So, even if you had the money to pay them initially, they can quickly become too expensive.
A lot of people can be inefficient with their income too. Spending on unnecessary things or impulse buying can quickly leave you short on money. This creates the same problem as mounting debts.
So, the major factor in keeping you financially healthy is managing your money and bills. But, this is easier said than done. Most people are too busy to keep such a close eye on their finances. This is especially true for those who are already in debt and are trying to work their way out.
The best option for many of these individuals is simply to outsource their financial management to another person or organization. This will allow a tighter watch to be kept over your money without tying you up. But, many people are unaware of how to do this.
So, below, we put together five ways you can outsource your financial management to make your life easier and stay financially stable.
5 Ways To Outsource Your Financial Management
1. Financial management firms
Using financial management firms when outsourcing financial management is usually a practice done by businesses. But, some firms also offer a similar service for private individuals. Here, your expenses and income are taken care of by a company.
Your money is either used to pay bills and debts, saved, or provided to you for expenses. The two drawbacks to this are the cost of these firms and the loss of control over your money. But, it is one of the most effective ways of getting your finances under control.
2. Wage garnishment agreements
The use of lawyers to help with wage garnishment is a common occurrence for those already in debt. But, they can be as useful for those trying to avoid debt. Wage garnishment lawyer help draw up agreements to have your employer withhold a certain amount of your wages to pay debts.
This automatic form of payment is effortless and helps you pay your debts quicker to stop them building up. It’s also cheaper than the above option, as you only need to draw up an agreement once. Although you may need to pay again to end the agreement.
3. Use technology
The use of apps on your smartphone is an easy and very low-cost way of having your finances managed. While it’s not outsourcing the management completely, some apps offer analysis of your incomes and expenses. Others even offer a way to pay your bills automatically, so they don’t go unnoticed.
The only drawback here is the work you will need to do to set up the apps and review how they are working now and again.
4. Use an accountant
This is a scaled-down version of the first option and should be considered even if you are good at managing your finances yourself. An accountant can help you get a clear view of your income and outgoings and can help you manage your money better.
They may also help you save some money by showing some tax-efficient ways to spend or save your cash. They can also be hired as-needed for added efficiency.
5. A family member or close friend
This is one of the oldest ways of outsourcing your financial management. But, it is one of the riskiest. Giving financial control to a close friend or family member can help save you from impulse buying and unnecessary spending.
But, if there are conflict arises, related or unrelated, to finances, this can cause a strain on the relationship. So, this method merits careful thought and should only be considered by those who can’t choose any of the above options.
Author Bio: Susan Ranford is an expert on career coaching, business advice, and workplace rights. She has written for New York Jobs, IAmWire, and ZipJob. In her blogging and writing, she seeks to shed light on issues related to employment, business, and finance to help others understand different industries and find the right job fit for them.