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How to Manage Your Finances after You Sell Your Annuity

January 7, 2019

Selling an annuity for immediate cash can provide a lifeline to people who are in need of cash now.  The most common reasons why people decide to ultimately sell their annuity is to pay down high interest debt, cover medical costs, take care of a home or car repair, etc. When you sell your annuity to a reputable factoring company that can offer you a competitive quote, you can get the money you need when all other options are exhausted.

After you sell your annuity, it’s important to gain a basic understanding of personal finances management, so you don’t find yourself in a similar predicament later on when you might not have an annuity to sell. For this reason, we wanted to take a second and discuss some basics of personal finance to ensure you have the savings and credit you need in case something happens in the future. Here are a few things to keep in mind:

Create a Budget: Take some time to look at your expenditures and see where your money is going There are some expenses that you can’t avoid – rent/mortgage, food, recurring bills, etc. However, there may be other expenditures that can be avoided, such as those morning coffee runs, eating out for lunch, going out to bars/restaurants all of the time, etc. List your expenditures each month to see if there are some ways to save.

Make Credit a Last Resort: Credit cards, personal loans, and other forms of credit should only be used if you know you can pay down the bill at the end of the month. If you cannot pay it off and it’s not dire, you should wait until you can afford it. Otherwise, you’re paying unnecessary interest. Avoid any high interest credit cards as they could end up costing you much more than what you used the card for.

Save and Look for Other Ways to Make Money: If you are spending more than you are bringing in and can’t avoid it, you may have to look at ways you can make extra money. You may have to get a second job, for example, until you are making enough to live within your means. Aim to save enough to have a six month cushion in case something does happen that you weren’t expecting. An easy way to do this is to schedule automatic savings deposits.

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