If you're in a financial bind, the absolute worst thing that you can do is to give up hope. The future is by no means cast in stone, nor is it written anywhere that it has to continue on as more of the same, if that 'same' refers to a bleak financial picture. For instance, you employ a few simple 'rearrangement' strategies to help get the most out of the money you have and allow it to work more efficiently for you. You'll soon realize that you're actually keeping more of it – not only in your pocket, but also in your bank account. Here are some ideas:
Review all of your services. This includes all utilities, entertainment services, insurance policies, etc. It's also recommended that you review your insurance coverage every few years. If your family's characteristics or circumstances have changed, it may be time to update your policies, including life, health, homeowners and any others that may be affected. For older cars that you own outright, dropping comprehensive and collision insurance will substantially lower your premiums. If you've been using a lawn care service, you can save that money by getting out there and doing the job yourself.
Change your 401(k) distribution. Perhaps you're holding a large percentage of your retirement funds in conservative markets. If you're at least fifteen or more years away from retirement, it's okay to go with a few more high-risk options to increase your return on investment. Yes, some money could potentially be lost with the riskier funds but you'll still have the time to recoup it with minimal damage.
Eat more meals at home. The money that you can save here can be quite substantial. Make full use of coupons when grocery shopping, and plan your meals in advance. The time and effort necessary is a small price to pay for keeping at least forty or fifty extra dollars in your pocket each week.
Invest your tax refunds and other windfalls. Windfall? Yes, a tax refund is considered a windfall because you don't know how much you're going to get until you do the math. Certainly, it's money that's hoped for, but not guaranteed. So, instead of spending it on items that bring no financial return, use it to buy CDs, stocks, or other investment instruments. Investing in a 529 plan is a great way to save money for your children's college education. Put this money to work for you making more money.
Start a small business. Perhaps you've dabbled in a hobby over the years and have found that there's a market for it. Use some of your extra money to get that business underway with very little overhead. Depending on your zeal, a decent return on your investment could be only months away.
Give to charity. Any money that you give to qualifying charities is tax-deductible. This includes property that you donate, including clothes and other items – even used automobiles. If you itemize deductions, charitable contributions can help to substantially increase your income tax refund.
