As a skilled trades professional, you work hard to earn a living. Unfortunately, financial stress is a common issue in the trades. Maybe you’re facing unexpected expenses, struggling to make ends meet, or simply feeling like you could be doing more with your money. Whatever your situation, there are some no-brainer ways to save money and reduce financial stress that you can start implementing today. Here are five of the best:
1. Create a budget
One of the most effective ways to save money is to create a budget. Knowing where your money is going each month can help you identify areas where you might be overspending and make changes. Start by listing your income and fixed expenses, such as rent or mortgage, car payment, and insurance. Then, list all of your variable expenses, such as groceries, eating out, and entertainment. Once you have a clear picture of your finances, you can make adjustments to cut back in areas where you’re overspending.
According to a recent survey by CareerBuilder, 78% of American workers live paycheck to paycheck. By creating a budget and tracking your expenses, you can start saving money and lessen financial anxiety.
2. Get organized
Another way to reduce financial stress is to get organized. Keep track of your bills and due dates, and set up automatic payments whenever possible. This can help you avoid late fees and make sure your bills are always paid on time. You can also organize your receipts and invoices to make it easier to file your taxes each year.
Additionally, consider using a budgeting app or software to help manage your finances. Mint, for example, is a free app that allows you to track your spending, create a budget, and set financial goals. The app sends alerts when bills are due, and it can show you how your spending compares to other people in your area.
3. Prioritize saving
Saving money should be a priority, no matter how much you make. Start by setting a savings goal, such as saving for a down payment on a house or building an emergency fund. Then, make a plan to save a certain amount of money each month, even if it’s just $50. Consider setting up automatic transfers from your checking account to your savings account to make saving easier.
According to a recent study by Bankrate, only 39% of Americans have enough savings to cover a $1,000 emergency expense. By prioritizing savings, you can protect yourself from unexpected expenses and reduce stress.
4. Reduce debt
Debt is a major source of stress for many people. If you’re carrying debt, consider making a plan to pay it off as quickly as possible. Start by paying off high-interest debt, such as credit card balances, before focusing on other debts. You can also look into consolidating your debts to lower your interest rates and simplify your payments.
According to the Federal Reserve, American households carry an average of $137,063 in debt. By reducing debt, you can free up money each month and reduce financial stress.
5. Invest in your education
Finally, consider investing in your education to increase your earning potential. You can do this by attending trade school or obtaining additional certifications in your field. By increasing your skills and knowledge, you’ll be more valuable to your employer and may be able to command a higher salary. Additionally, by learning new skills and staying current in your field, you’ll be less likely to be laid off or experience long periods of unemployment.
According to the Bureau of Labor Statistics, the median weekly earnings for skilled trades workers is $23.10 per hour. However, the earning potential for skilled trades workers can vary widely depending on their level of education and experience.
Financial stress can take a toll on your health, relationships, and overall quality of life. By implementing these no-brainer ways to save money and reduce financial stress, you can improve your financial situation and enjoy more financial stability. Start by creating a budget, getting organized, prioritizing saving, reducing debt, and investing in your education. With these simple steps, you’ll be on your way to a brighter financial future.
> For one on one or group assistance with personal finance, STR recommends that you check out the following resources:
> Inaccuracies with Bureau of Labor Statistics (BLS) data: Many of our blog posts will quote BLS data. SkilledTradeRescue.com has been able to identify that data quoted specifically for Skilled Trades can be as much as 50% LOW in many USA labor markets. For more information on these inaccuracies please visit the STR national labor survey page at the link below. On this page there is a video containing the latest information at the top of the page as well as other information. If you currently work in skilled trades, PLEASE consider participating in our national labor survey.
CLICK HERE for more Information