Tips on How to Manage Your Financial Challenges

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Tips on How to Manage Your Financial Challenges

There’s no question that financial challenges can trigger a lot of stress in our lives. Continually thinking 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 well-being. The fact is, worrying about money isn’t going to fix your financial difficulties. 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 troubles so you can live a worry-free life again.

 

Document your monthly expenditures

The first step in overcoming your financial complications is find out exactly where your pain points are. Regardless if you’re dealing with a large credit card balance, you’re trying to boost your retirement savings, or you just spend too much on eating out during the week, pinpointing the main causes of your financial issues will reveal to you which expenditures need to be prioritised so you can get your finances back on course. Get a pen and paper and write down your current monthly expenses including debt repayments, bills, food, transport, tuition, and any other items you normally spend every month.

 

Cut back on your expenditures

When you’ve got your monthly expenses in front of you, take a closer look and find which expenses can be minimised and which can be severed altogether. Even though your mortgage repayments obviously can’t be lowered, you can likely reduce your food bill by only eating at home and even get rid of other entertainment expenses like cable TV. It’s essential that you are pragmatic about reducing your expenses. Bear in mind, if you’re trying to overcome financial complications then you have to make sacrifices to resolve them.

 

Create a budget

Now that you’ve got your monthly expenditures documented without the unnecessary spending, you need to develop a budget. If you’re not familiar with developing 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 practical: 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 viewing your income and expenses. It’s essential that you stick your budget. If you think that it could be too hard 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 suffering than others, so to relieve your financial stress as best as possible, aim to decrease 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 aim to reduce these types of debts as quickly as possible. Always remember, you still have other fixed debts each month such as phone bills and electricity, so these need to be accounted for as well.

 

Still feeling the heat?

If you’ve reduced your expenses and created a budget but still find that there’s not enough money to pay off all your debts, you’ll need 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 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 exacerbate an already stressful situation.

 

Seek financial advice

If the above steps haven’t relieved your financial stress, it’s better to seek financial advice sooner rather than later. Depending on your individual situation, there are a number of options available like debt consolidation loans or debt agreements which can help those in need. Don’t fight your debts for years before seeking help, speak with Bankruptcy Experts Wyong on 1300 795 575 or visit our website for more information: www.bankruptcyexpertswyong.com.au

There’s no question that financial challenges can trigger a lot of stress in our lives. Continually thinking 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 well-being. The fact is, worrying about money isn’t going to fix your financial difficulties. 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 troubles so you can live a worry-free life again.

 

Document your monthly expenditures

The first step in overcoming your financial complications is find out exactly where your pain points are. Regardless if you’re dealing with a large credit card balance, you’re trying to boost your retirement savings, or you just spend too much on eating out during the week, pinpointing the main causes of your financial issues will reveal to you which expenditures need to be prioritised so you can get your finances back on course. Get a pen and paper and write down your current monthly expenses including debt repayments, bills, food, transport, tuition, and any other items you normally spend every month.

 

Cut back on your expenditures

When you’ve got your monthly expenses in front of you, take a closer look and find which expenses can be minimised and which can be severed altogether. Even though your mortgage repayments obviously can’t be lowered, you can likely reduce your food bill by only eating at home and even get rid of other entertainment expenses like cable TV. It’s essential that you are pragmatic about reducing your expenses. Bear in mind, if you’re trying to overcome financial complications then you have to make sacrifices to resolve them.

 

Create a budget

Now that you’ve got your monthly expenditures documented without the unnecessary spending, you need to develop a budget. If you’re not familiar with developing 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 practical: 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 viewing your income and expenses. It’s essential that you stick your budget. If you think that it could be too hard 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 suffering than others, so to relieve your financial stress as best as possible, aim to decrease 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 aim to reduce these types of debts as quickly as possible. Always remember, you still have other fixed debts each month such as phone bills and electricity, so these need to be accounted for as well.

 

Still feeling the heat?

If you’ve reduced your expenses and created a budget but still find that there’s not enough money to pay off all your debts, you’ll need 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 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 exacerbate an already stressful situation.

 

Seek financial advice

If the above steps haven’t relieved your financial stress, it’s better to seek financial advice sooner rather than later. Depending on your individual situation, there are a number of options available like debt consolidation loans or debt agreements which can help those in need. Don’t fight your debts for years before seeking help, speak with Bankruptcy Experts Wyong on 1300 795 575 or visit our website for more information: www.bankruptcyexpertswyong.com.au

 

By | 2018-09-21T04:41:59+00:00 September 21st, 2018|Bankrupt, Blog|0 Comments

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