There’s no question that financial difficulties can inflict a lot of anxiety in our lives. Repeatedly thinking about how you’re going to pay your bills not only makes you apprehensive, but also puts stress on your relationships, your family, and your health. The fact is, stressing over money isn’t going to cure your financial difficulties. If you’ve found yourself in a situation where you’re struggling to make ends meet, here are the best ways to resolve your financial complications so you can live a worry-free life again.
Write down your monthly expenses
The first step in taking care of your financial concerns is ascertain exactly where your pain points are. Whether or not you’re dealing with a large credit card debt, you’re attempting to enhance your retirement savings, or you just spend too much on dining in restaurants during the week, pinpointing the main causes of your financial issues will reveal to you which expenditures must be prioritised so you can get your finances back on track. Get a pen and paper and document your current monthly expenditures including bills, debt repayments, food, tuition, transport, and any other items you normally spend each month.
Cut back on your expenditures
After you’ve got your monthly expenses in front of you, take a closer look and find which expenses can be decreased and which can be eliminated altogether. Even though your mortgage repayments naturally can’t be decreased, you can most likely lower your food bill by only eating at home and even get rid of other entertainment expenses such as cable television. It’s integral that you are pragmatic about cutting down your expenses. Bear in mind, if you’re trying to address financial problems then you have to make sacrifices to resolve them.
Set up a budget
Now that you’ve got your monthly expenses written down without the unnecessary spending, you need to create a budget. If you’re unfamiliar with developing a budget, there are plenty of wonderful apps you can download on your smartphone. 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 determine how much money you have left each month by examining your income and expenses. It’s crucial that you stick your budget. If you sense that it could be too challenging to do this, add a miscellaneous item to your budget to give you some room to breathe, or even a motivation item to reward yourself at the end of the month for sticking to your budget.
Prioritise your debts
Some debts cause more pain than others, so to ease your financial stress as best as possible, aim to decrease your largest debts first. Not only will you be saving money by paying less interest, you’ll also feel much better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so attempt to decrease these types of debts as soon as possible. Keep in mind, you still have other fixed debts each month including phone bills and electricity, so these need to be taken into account as well.
Still feeling the heat?
If you’ve cut down your expenses and developed a budget but still find that there’s not enough money to pay off all your debts, you’ll have to find other income streams. Are you able to work a second job? Can you sell any costly household items that you can do without? Reaching out to family and friends is another reliable way to attempt to deal with your concerns. Whatever you do to get additional money, never get a personal loan from the bank to settle your existing debt – this will only magnify an already stressful situation.
Seek financial assistance
If the above steps haven’t relieved your financial strain, it’s better to seek financial assistance sooner rather than later. Depending on your individual circumstances, there are a number of solutions available including debt consolidation loans or debt agreements which can assist those in need. Don’t wrestle with your debts for years before getting guidance, call Bankruptcy Experts Tweed Coast on 1300 795 575 or visit our website for further information: www.bankruptcyexpertstweedcoast.com.au