September 11, 2018 0

Tips on How to Deal With Your Financial Troubles

Posted by:Charles Bosse onSeptember 11, 2018

There’s no doubt that financial concerns can cause a lot of stress and anxiety in our lives. Constantly fretting 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, worrying about money isn’t going to cure your financial issues. If you’ve found yourself in a situation where you’re battling to make ends meet, here are the best ways to deal with your financial issues so you can live a stress-free life again.

 

List your monthly expenditures

The first step in overcoming your financial difficulties is figure out exactly where your pain points are. Regardless if you’re dealing with a large credit card debt, you’re attempting to increase your retirement savings, or you merely spend too much on eating out throughout the week, identifying the main causes of your financial issues will show you which expenses need to be prioritised so you can get your finances back on track. Get a pen and paper and jot down your current monthly expenses including food, bills, debt repayments, transport, tuition, and any other items you regularly spend every month.

 

Cut down on your expenditures

When you’ve got your monthly expenses in front of you, take a closer look and find which expenses can be lowered and which can be removed altogether. While your mortgage repayments clearly can’t be decreased, you can likely lower your food bill by only eating at home and even eliminate other entertainment expenses like cable television. It’s crucial that you are pragmatic about minimising your expenses. Always remember, if you’re trying to address financial problems then you must make sacrifices to resolve them.

 

Develop a budget

Now that you’ve got your monthly expenditures documented without the unnecessary spending, you have to construct a budget. If you’re unfamiliar with constructing a budget, there are loads 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 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 challenging to do this, add a miscellaneous item to your budget to give you some room to breathe, or perhaps 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 pressure as best as possible, try to decrease your biggest 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 types of debts as quickly as possible. Don’t forget, you still have other fixed debts each month like phone bills and electricity, so these need to be factored in too.

 

Still feeling the heat?

If you’ve cut down 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 high priced household items that you can do without? Reaching out to family or friends is another useful way to try to deal with your troubles. Whatever you do to get extra money, never get a personal loan from the bank to pay off your existing debt – this will only intensify an already stressful situation.

 

Seek financial assistance

If the above steps haven’t relieved your financial pressure, it’s better to seek financial advice sooner rather than later. Depending on your individual circumstances, there are lots of alternatives available including debt consolidation loans or debt agreements which can help those in need. Don’t wrestle with your debts for years before getting guidance, reach out to Fresh Start Solutions Sydney on 1300 818 575 or visit our website for more information: http://freshstartsolutions.com.au/bankruptcy-sydney

 

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