September 11, 2018 0

Tips on How to Address Your Financial Issues

Posted by:Charles Bosse onSeptember 11, 2018

There’s no doubt that financial troubles can bring about a lot of anxiety in our lives. Frequently 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, stressing over money isn’t going to solve your financial difficulties. If you’ve found yourself in a position 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.

 

Write down your monthly expenses

The first step in addressing your financial difficulties is ascertain exactly where your pain points are. Regardless if you’re dealing with a large credit card debt, you’re attempting to boost your retirement savings, or you just spend too much on eating out throughout the week, recognising the main causes of your financial concerns will show you which expenditures need to be prioritised so you can get your finances back on course. Get a pen and paper and document your current monthly costs including debt repayments, bills, food, transport, tuition, and any other items you frequently spend each month.

 

Lower your expenses

When you’ve got your monthly expenses in front of you, take a closer look and see which expenses can be lowered and which can be removed altogether. While your mortgage repayments obviously can’t be reduced, you can likely reduce your food bill by only eating at home and even remove other entertainment expenses such as cable television. It’s critical that you are pragmatic about lowering your expenses. Always remember, if you’re dealing with financial complications then you have to make sacrifices to resolve them.

 

Develop a budget

Now that you’ve got your monthly expenditures jotted down without the unnecessary spending, you must develop a budget. If you’re unfamiliar with making a budget, there are a number of fantastic apps you can download on your mobile phone. Personally, I’ve found the Budget Planning app from ASIC to be very useful: 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 examining your income and expenses. It’s critical that you stick your budget. If you feel that it could be too hard 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 pain than others, so to alleviate your financial pressure as best as possible, aim to reduce your biggest 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 try to reduce these types of debts as soon as possible. Keep in mind, you still have other fixed debts each month like phone bills and electricity, so these need to be accounted for as well.

 

Still feeling the heat?

If you’ve cut back on your expenditures 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 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 or friends is another practical way to try to resolve your challenges. 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 advice

If the above steps haven’t relieved your financial stress, it’s better to seek financial assistance sooner rather than later. Depending on your individual situation, there are lots of options available including debt consolidation loans or debt agreements which can assist those in need. Don’t fight your debts for years before seeking help, get in touch with Fresh Start Solutions Darwin on 1300 818 575 or visit our website for further information: https://freshstartsolutions.com.au/bankruptcy-darwin

 

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