There’s no doubt that financial problems can lead to a lot of stress 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, stressing over money isn’t going to cure your financial concerns. If you’ve found yourself in a position where you’re struggling to make ends meet, here are the best ways to resolve your financial troubles so you can live a worry-free life again.
List your monthly costs
The first step in tackling your financial troubles is uncover exactly where your pain points are. Whether you’re dealing with a large credit card debt, you’re attempting to enhance your retirement savings, or you merely spend too much on eating in restaurants during the week, pinpointing the main causes of your financial issues will reveal to you which expenditures have to be prioritised so you can get your finances back on course. Grab a pen and paper and jot down your current monthly costs including debt repayments, food, bills, tuition, transport, and any other items you commonly spend every month.
Decrease your expenditures
Once you’ve got your monthly expenditures in front of you, take a closer look and see which expenses can be lowered and which can be eliminated altogether. While your mortgage repayments certainly can’t be reduced, you can probably lower your food bill by only eating at home and even eliminate other entertainment expenses such as cable television. It’s integral that you are pragmatic about reducing your expenses. Remember, if you’re dealing with financial troubles then you need to make sacrifices to resolve them.
Set up a budget
Now that you’ve got your monthly expenditures jotted down without the unnecessary spending, you have to construct a budget. If you’re unfamiliar with making a budget, there are loads of terrific 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 determine how much money you have left each month by looking at your income and expenses. It’s vital that you stick your budget. If you think that it could be too 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 sticking to your budget.
Prioritise your debts
Some debts cause more strain 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 far better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so aim to diminish these kinds of debts as quickly as possible. Don’t forget, you still have other fixed debts every month including phone bills and electricity, so these have to be factored in too.
Still feeling the heat?
If you’ve cut back on your expenditures and made a budget but still find that there’s not enough money to settle all your debts, you’ll need to find other sources of income. Are you able to work a second job? Can you sell any expensive household items that you can do without? Reaching out to family or friends is another practical way to try to deal with your concerns. Whatever you do to get extra money, never get a personal loan from the bank to pay off 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 guidance sooner instead of later. Depending on your individual situation, there are lots of alternatives available like debt consolidation loans or debt agreements which can assist those in need. Don’t wrestle with your debts for years before seeking help, phone Bankruptcy Experts Alice Springs on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsalicesprings.com.au