September 11, 2018 0

Tips on How to Resolve Your Financial Challenges

Posted by:Charles Bosse onSeptember 11, 2018

There’s no question that financial complications can cause a lot of stress in our lives. Always 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 well-being. The fact is, stressing over money isn’t going to solve your financial troubles. If you’ve found yourself in a position where you’re straining to make ends meet, here are the best ways to manage your financial challenges so you can live a worry-free life again.

 

List your monthly expenditures

The first step in addressing your financial troubles is determine exactly where your pain points are. Regardless if you’re dealing with a large credit card balance, you’re attempting to increase your retirement savings, or you simply spend too much on dining in restaurants throughout the week, pinpointing the main causes of your financial concerns will reveal to you which expenses have to be prioritised so you can get your finances back on course. Grab a pen and paper and write down your current monthly expenses including debt repayments, food, bills, tuition, transport, and any other items you generally spend each month.

 

Cut back on your expenses

When you’ve got your monthly expenditures in front of you, take a closer look and find which expenses can be decreased and which can be cut out altogether. While your mortgage repayments clearly can’t be lowered, you can most likely reduce your food bill by only eating at home and even eliminate other entertainment expenses like cable television. It’s vital that you are pragmatic about reducing your expenses. Don’t forget, if you’re trying to address financial troubles then you need to make sacrifices to resolve them.

 

Put together a budget

Now that you’ve got your monthly expenses jotted down without the unnecessary spending, you have to develop a budget. If you’re not familiar with constructing a budget, there are a number of fantastic apps you can download on your smartphone. Personally, I’ve found the Budget Planning app from ASIC to be very reliable: https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/budget-planner.

 

This will enable you to calculate how much money you have left every month by examining your income and expenses. It’s essential that you stick your budget. If you feel 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 following your budget.

 

Prioritise your debts

Some debts cause more distress than others, so to ease your financial burden as best as possible, try 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 decrease these kinds of debts as soon as possible. Remember, you still have other fixed debts every month including phone bills and electricity, so these should be accounted for as well.

 

Still feeling the heat?

If you’ve reduced your expenditures 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 expensive household items that you can do without? Reaching out to family and friends is another effective way to try to address your challenges. Whatever you do to get extra money, never get a personal loan from the bank to repay your existing debt – this will only worsen an already stressful situation.

 

Seek financial guidance

If the above steps haven’t relieved your financial stress, it’s better to seek financial guidance sooner instead of later. Depending on your individual situation, there are plenty of alternatives available like debt consolidation loans or debt agreements which can assist those in need. Don’t wrestle with your debts for years before getting assistance, speak to Fresh Start Solutions Adelaide on 1300 818 575 or visit our website for more information: http://freshstartsolutions.com.au/bankruptcy-adelaide

 

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