September 11, 20180

Tips on How to Manage Your Financial Troubles

Posted by:Charles Bosse onSeptember 11, 2018

There’s no doubt that financial complications can trigger a lot of anxiety 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, worrying about money isn’t going to solve your financial concerns. If you’ve found yourself in a situation where you’re battling to make ends meet, here are the best ways to manage your financial difficulties so you can live a stress-free life again.

 

Document your monthly expenditures

The first step in dealing with your financial issues is figure out exactly where your pain points are. Whether you’re dealing with a large credit card balance, you’re attempting to increase your retirement savings, or you merely spend too much on eating in restaurants throughout the week, discovering the main causes of your financial woes will show you which expenditures have to be prioritised so you can get your finances back on track. Grab a pen and paper and write down your current monthly costs including bills, debt repayments, food, tuition, transport, and any other items you normally spend every month.

 

Reduce your expenditures

When you’ve got your monthly expenditures in front of you, take a closer look and see which expenses can be decreased and which can be severed altogether. Although your mortgage repayments certainly can’t be lowered, you can possibly lower your food bill by only eating at home and even eliminate other entertainment expenses such as cable television. It’s critical that you are pragmatic about cutting down your expenses. Keep in mind, if you’re trying to overcome financial issues then you need to make sacrifices to resolve them.

 

Put together a budget

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

 

This will enable you to establish how much money you have left every month by examining your income and expenses. It’s critical that you stick your budget. If you feel that it could be difficult 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 relieve your financial strain 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 aim to reduce these types of debts as quickly as possible. Always remember, 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 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 high priced household items that you can do without? Reaching out to family and friends is another effective way to try to resolve your difficulties. Whatever you do to get additional money, never get a personal loan from the bank to settle your existing debt – this will only worsen an already stressful situation.

 

Seek financial assistance

If the above steps haven’t relieved your financial pressure, it’s better to seek financial assistance sooner rather than later. Depending on your individual circumstances, there are numerous choices available including debt consolidation loans or debt agreements which can help those in need. Don’t fight your debts for years before getting assistance, talk to Fresh Start Solutions Canberra on 1300 818 575 or visit our website for more information: https://freshstartsolutions.com.au/bankruptcy-canberra

 

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