|September 19, 2018||Comments Closed|
There’s no question that financial concerns can create a lot of anxiety in our lives. Continually thinking about how you’re going to pay your bills not only makes you distressed, 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 problems. If you’ve found yourself in a position where you’re straining to make ends meet, here are the best ways to resolve your financial difficulties so you can live a worry-free life again.
Write down your monthly expenses
The first step in overcoming your financial troubles is determine exactly where your pain points are. Whether you’re dealing with a large credit card balance, you’re attempting to boost your retirement savings, or you simply spend too much on dining in restaurants during the week, identifying the main causes of your financial woes will reveal to you which expenses should be prioritised so you can get your finances back on track. Grab a pen and paper and jot down your current monthly costs including bills, debt repayments, food, tuition, transport, and any other items you regularly spend each month.
Cut down on your expenditures
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 severed altogether. Although your mortgage repayments obviously can’t be lowered, you can possibly decrease your food bill by only eating at home and even do away with other entertainment expenses such as cable TV. It’s pivotal that you are pragmatic about decreasing your expenses. Remember, if you’re dealing with financial troubles then you need to make sacrifices to resolve them.
Construct a budget
Now that you’ve got your monthly expenses documented without the unnecessary spending, you have to develop a budget. If you’re unfamiliar with developing 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 useful: 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 each month by reviewing your income and expenses. It’s necessary 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 even 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, try 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 aim to lower these kinds of debts as quickly as possible. Bear in mind, you still have other fixed debts each month such as phone bills and electricity, so these should be taken into account as well.
Still feeling the heat?
If you’ve lowered your expenses and created 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 expensive household items that you can do without? Reaching out to family or friends is another reliable way to try to address your troubles. Whatever you do to get additional 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 advice
If the above steps haven’t relieved your financial strain, it’s better to seek financial assistance sooner instead of later. Depending on your individual situation, there are lots of solutions 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, get in contact with Bankruptcy Experts Ipswich on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsipswich.com.au