Tips on How to Resolve Your Financial Problems
There’s no question that financial troubles can inflict a lot of stress in our lives. Continuously thinking about how you’re going to pay your bills not only makes you anxious, but also places stress on your relationships, your family, and your well-being. The fact is, stressing over money isn’t going to cure your financial troubles. If you’ve found yourself in a position where you’re struggling to make ends meet, here are the best ways to address your financial troubles so you can live a stress-free life again.
Write down your monthly expenses
The first step in addressing your financial challenges is find out exactly where your pain points are. Regardless if you’re dealing with a large credit card debt, you’re trying to enhance your retirement savings, or you merely spend too much on dining in restaurants throughout the week, recognising the main causes of your financial issues will show you which expenditures must be prioritised so you can get your finances back on course. Grab a pen and paper and jot down your current monthly costs including debt repayments, bills, food, transport, tuition, and any other items you frequently spend each month.
Reduce your expenditures
After you’ve got your monthly expenses in front of you, take a closer look and examine which expenses can be decreased and which can be eliminated altogether. Even though your mortgage repayments naturally can’t be lowered, you can probably lower your food bill by only eating at home and even get rid of other entertainment expenses such as cable TV. It’s pivotal that you are pragmatic about minimising your expenses. Remember, if you’re trying to overcome financial difficulties then you must make sacrifices to resolve them.
Construct a budget
Now that you’ve got your monthly expenses documented without the unnecessary spending, you have to set up a budget. If you’re unfamiliar with developing a budget, there are a number of fantastic apps you can download on your mobile phone. Personally, I’ve found the Budget Planning app from ASIC to be very helpful: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner.
This will enable you to identify how much money you have left every month by looking at your income and expenses. It’s paramount that you stick your budget. If you think that it could be too challenging to do this, add a miscellaneous item to your budget to give you some room to breathe, or maybe a motivation item to reward yourself at the end of the month for following your budget.
Prioritise your debts
Some debts cause more suffering than others, so to alleviate your financial pressure as best as possible, aim to reduce your largest debts first. Not only will you be saving money by paying less interest, you’ll also feel far better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so attempt to diminish these kinds of debts as quickly as possible. Bear in mind, you still have other fixed debts every month like phone bills and electricity, so these have to be factored in too.
Still feeling the heat?
If you’ve cut down your expenditures and developed a budget but still find that there’s not enough money to pay off all your debts, you’ll need to find other sources of income. Are you able to work a second job? Can you sell any expensive household items that you can do without? Reaching out to family or friends is another reliable way to try to resolve your difficulties. Whatever you do to get extra money, never get a personal loan from the bank to repay your existing debt – this will only magnify an already stressful situation.
Seek financial guidance
If the above steps haven’t relieved your financial strain, it’s better to seek financial guidance sooner instead of later. Depending on your individual situation, there are lots of choices available such as debt consolidation loans or debt agreements which can assist those in need. Don’t wrestle with your debts for years before seeking help, talk with Bankruptcy Experts Tablelands on 1300 795 575 or visit our website for further information: www.bankruptcyexpertstablelands.com.au