Here is a list of financial challenges you can face in 2016. Find out what you can do to tackle them.
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Stacy B Miller On 14th Apr,16
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The first quarter of 2016 is over. Initial financial hurdles are over. But the whole year lies ahead of you with a bucket full of financial challenges, and you need to overcome them anyhow to not fall flat on your face.

Here’s my list of financial challenges you may face in this year.

1. Problems in saving money

Saving is mainly about priority. Have a look at your credit card statements and bank statements to figure out your expenses. Next, evaluate your saving and spending goals. Spend the money for the basic expenses such as food, clothes, shelter, utility bills, etc. Set aside a specific amount for retirement savings. You can save rest of the amount. If required, you can withdraw a small amount for your discretionary expenditures.

2. Problems in paying off debt

Debt is a tough financial challenge, and you need to use your brain wisely to overcome it. You can take the following steps to win this challenge:

  • Use proper money management strategies to inflate your savings
  • Call 800 530 OVLG and explain your debt problems to the financial coach
  • Listen to your options for relieving your debt load
  • Use this calculator to find out how much you can potentially save
  • Enroll in OVLG debt settlement program to pay back your creditors
  • Start paying off your debts one by one

3. Problems in saving on tax

I know this is a big financial challenge. But don’t worry. I have a solution for you. Download this FREE ebook on 155 ways to save money on tax. Find out all the possible ways to get deductions. Plus, check out the tax law changes in 2016 to avoid making any costly mistake.

4. A medical emergency

Accidents don’t give you any preparation time. Plus, you can never predict when your health may go down. Live a simple life and take care of your health. Check your medical insurance policies. Increase your coverage limit if possible.

5. A major life event

Wedding, divorce, and parenthood - these major life events are quite expensive. The challenge is to cover the increased expenditures within your limited income. Change your lifestyle and budget to meet the increased expenses.

If you have got the house post-divorce but don’t have enough money to maintain it, then move to a smaller apartment. You can either sell the house or rent it out.

Discuss with your spouse regarding how to manage increased expenditures after the honeymoon phase is over. Share expenses so that both of you can avoid financial troubles in future. Correct each other flaws to win this challenge.

Look at the tax breaks for new parents. Watch out for the paid parental leave, parental tax credit and government financial programs. This’ll help you cover the increased expenditures.

6. Job loss

Now, this is something that no one can predict unless one’s performance is terribly poor. If you don’t have a good professional relation with your boss, then create a financial cushion to live comfortably for minimum 6 months. I guess, you would get a second job by this time. Get an unemployment insurance too.

Conclusion

Your mindset is most important in overcoming financial challenges. Impulsive decisions will bring fresh and complex financial challenges in your life. But, informed and wise decisions will help you stay on the right financial track.

Proper money management is essential in personal life, and it begins with developing good financial habits. So, always track your finances, follow a budget, and stay updated about the changes in the financial law in the country. I’m sure you’ll win all the financial challenges in 2016.

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