How Reducing Your Debts Will Make You Happy: It's Not As Difficult as You Think

We are living in hard times, no doubt, and for us dads the worry of keeping a roof over our family’s heads has never been greater in our lifetimes. The pandemic alone has caused health and financial crises for millions of people, and there is no end in sight right now. 

The good news? You may be surprised to learn that for many families just like ours, the crisis has shown us what we are truly able to do to improve our finances, without spending money from fast cash loans to keep the family entertained. The greater time that families have been forced to spend together seems to have made people happier. It’s true - here’s the proof! 

According to the Ipsos Global Happiness Survey 2020 63% of adults across 27 countries are happy despite the pandemic, half of whom stated that health (mental and physical) was the source of their greatest happiness. That figure is virtually unchanged from pre-pandemic 2019 figures (64%). 

Surprised? What about wealth making you happy, you might ask? Well, 45% felt that their living conditions (water, food and shelter) was the primary source of their happiness.  

Financial wellness goes hand in hand with physical and mental health So we have to take a quick look and explore how you can make to most of the money you make in these hard times, which will in turn reduce your stress and in turn, the level of your happiness. Let’s dive in here.  

Credit Cards and Loans 

Credit cards are almost a necessity in modern life, and if you do not use one it can make getting things done more difficult. Even the IRS requires a card in order for you to verify your identity online in order to obtain your tax transcripts! Try reserving a hotel room or an airline ticket and you’ll hit more obstacles. 

The problem is that credit cards can become very costly, very quickly, if you do not pay back more than the minimum payment each month, because the interest rates are high often high, the average rate coming in at a whopping 17.87% according to according to WalletHub’s Credit Card Landscape Report .  

You probably know already of the necessity to make sure that you have a good credit score which in the United States is a credit score system based on the FICO (Fair Isaac Corp.) range, a number between 300-850. The higher your score, the better the view that money lenders will have of you as a credit risk.  

Here is a useful tip - if you are lucky enough to have a high credit score your interest rate will be lower, and you will be in a way better position to obtain consolidation loans online, which are lower interest rate quick loans that you can use to pay off your higher interest rate credit cards for a lower monthly payment. 

Your credit score might fall a little initially when getting a consolidation loan, but once you have paid off several installments on time over a period of months, and the outstanding loan balance begins to fall it will improve your credit 

In addition, the fact that you will have a fixed term loan (usually 3 to 5 years) makes it way more likely that you will get of debt sooner than if you just let your credit card debt roll on indefinitely.

Reduce Your Home Expenses  

The more you can reduce your reliance on having to spend money, the more time and freedom you will have to enjoy your family life. It is difficult to keep a smile on your face peering from under a mountain of bills!  

There are very obvious ways to save money, by not having takeout meals five times per week, seeking out free entertainment at home, and making a grocery shopping list before going to the supermarket and strictly adhering to it, for example. 

But there are hidden home expenditures that you may not have thought of: 

·         energy vampires – leaving electrical appliances plugged in when not in use will increase usage (yes, even the surge protector strips) 

·         online apps and subscriptions for websites entertainment and programs – review them regularly and check if you really need them, they are easy to forget and your subscription will drip-drip-drip dollars from your account every month without noticing  

·         insurance policies – these tend to increase every year, seemingly for little or no reason – for example if you are driving less because you are working from home, ask your insurer for a low-mileage discount plan

These are just a few of the sneaky ways that your family lifestyle habits can eat into your household budget. 

Create A Side Hustle or Learn a New Skill 

If you are forced to spend extended periods of time at home, maybe it is time to get a little more resourceful and creative in finding ways to reduce your debts. 

Have a look in the garage and make a checklist of what you have stored away and maybe even forgotten about (it is easy to do); you are very likely to find old clothes, furniture, collectibles and electronics that you haven’t even seen for years. It is easier than ever to sell items online through eBay, Craigslist and the like, and free up some unexpected and much needed cash quickly.  

If you are unfortunate enough to have been furloughed or laid off, then perhaps it is time to take the opportunity to learn new skills from home online. There are several large online learning platforms, like Udemy, Skillshare and Coursera who offer free or low-cost online courses. 

You may take the opportunity to finally learn that skill that you have always felt that you had but did not feel the necessity to try. It is not difficult to set up a website and sell your skill online to earn money, for very little cost. Skills like coding, search engine optimization, online advertising, video and text editing, writing, and social media marketing, are all skills that can be learned within a month or so, and there is always a demand from businesses for freelancers. 

These are just examples, of course – you should look to develop your skillset to create the most in-demand side hustle that you can create for the maximum income. 

Just think about it – creating your own father owned business that you can run from home, and get to spend that long overdue quality tie with your family. 

And Finally 

Money can’t buy you love –but it can buy you time, space and peace of mind that you can provide for your loved ones. That I turn can help you live your happiest healthiest life even in these direst of times. 

Feel free to share your best money saving tips ad advice in the comments below. Thanks for reading!  

The opinions expressed in the Blog are for general informational and entertainment purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific investment product.  It is only intended to provide education about the financial industry.  The views reflected in the commentary are subject to change at any time without notice.