|September 11, 2018||0|
There’s no question that financial difficulties can create a lot of anxiety in our lives. Continually fretting about how you’re going to pay your bills not only makes you distressed, but also places stress on your relationships, your family, and your health. The fact is, stressing over money isn’t going to cure your financial concerns. If you’ve found yourself in a situation where you’re struggling to make ends meet, here are the best ways to manage your financial problems so you can live a worry-free life again.
List your monthly expenditures
The first step in tackling your financial problems is determine exactly where your pain points are. Whether or not you’re dealing with a large credit card debt, you’re trying to increase your retirement savings, or you merely spend too much on eating out during the week, identifying the main causes of your financial problems will show you which expenses need to be prioritised so you can get your finances back on course. Grab a pen and paper and jot down your current monthly expenditures including bills, debt repayments, food, tuition, transport, and any other items you usually spend every month.
Reduce your expenditures
When you’ve got your monthly expenses in front of you, take a closer look and examine which expenses can be lowered and which can be severed altogether. Even though your mortgage repayments naturally can’t be decreased, you can possibly decrease your food bill by only eating at home and even get rid of other entertainment expenses like cable television. It’s necessary that you are pragmatic about decreasing your expenses. Don’t forget, if you’re trying to address financial issues then you have to make sacrifices to resolve them.
Create 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 making a budget, there are a number of terrific 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 find out how much money you have left every month by looking at your income and expenses. It’s critical that you stick your budget. If you sense that it could be 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 strain than others, so to ease your financial stress 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. Bear in mind, you still have other fixed debts each month including phone bills and electricity, so these should be factored in too.
Still feeling the heat?
If you’ve lowered your expenses and constructed a budget but still find that there’s not enough money to settle all your debts, you’ll have to find other income sources. 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 helpful way to attempt to deal with your difficulties. Whatever you do to get additional money, never get a personal loan from the bank to pay off your existing debt – this will only worsen an already stressful situation.
Seek financial guidance
If the above steps haven’t relieved your financial pressure, it’s better to seek financial assistance sooner instead of later. Depending on your individual circumstances, there are lots of choices available like debt consolidation loans or debt agreements which can help those in need. Don’t fight your debts for years before getting guidance, talk to Fresh Start Solutions Gold Coast on 1300 818 575 or visit our website for more information: http://freshstartsolutions.com.au/bankruptcy-goldcoast