September 11, 2018 0

Tips on How to Manage Your Financial Challenges

Posted by:Charles Bosse onSeptember 11, 2018

There’s no question that financial problems can bring about a lot of stress and anxiety in our lives. Repeatedly worrying about how you’re going to pay your bills not only makes you anxious, but also puts stress on your relationships, your family, and your well-being. The fact is, worrying about money isn’t going to fix your financial concerns. If you’ve found yourself in a position where you’re straining to make ends meet, here are the best ways to address your financial troubles so you can live a stress-free life again.

 

Document your monthly costs

The first step in addressing your financial troubles is discover exactly where your pain points are. Whether you’re dealing with a large credit card balance, you’re trying to enhance your retirement savings, or you merely spend too much on eating out throughout the week, discovering the main causes of your financial issues will show you which expenses should be prioritised so you can get your finances back on track. Grab a pen and paper and document your current monthly expenditures including debt repayments, food, bills, tuition, transport, and any other items you generally spend every month.

 

Decrease your expenses

Once 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 cut out altogether. Even though your mortgage repayments certainly can’t be decreased, you can most likely decrease your food bill by only eating at home and even do away with other entertainment expenses such as cable television. It’s necessary that you are pragmatic about decreasing your expenses. Always remember, if you’re dealing with financial difficulties then you must 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 construct a budget. If you’re unfamiliar with creating a budget, there are loads of wonderful apps you can download on your mobile phone. 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 identify how much money you have left every month by looking at your income and expenses. It’s necessary that you stick your budget. If you sense 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 sticking to your budget.

 

Prioritise your debts

Some debts cause more strain than others, so to lighten your financial pressure 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 much 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 quickly as possible. Don’t forget, you still have other fixed debts every month such as phone bills and electricity, so these have to be taken into account as well.

 

Still feeling the heat?

If you’ve cut down your expenditures and created a budget but still find that there’s not enough money to repay 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 effective way to attempt to address your concerns. Whatever you do to get extra 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 stress, it’s better to seek financial advice sooner instead of later. Depending on your individual situation, there are a number of options available such as debt consolidation loans or debt agreements which can assist those in need. Don’t fight your debts for years before seeking help, phone Fresh Start Solutions Perth on 1300 818 575 or visit our website for additional information: https://freshstartsolutions.com.au/bankruptcy-perth

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