There’s no question that financial complications can inflict a lot of stress and anxiety in our lives. Endlessly fretting about how you’re going to pay your bills not only makes you apprehensive, but also places stress on your relationships, your family, and your health. The fact is, stressing over money isn’t going to cure your financial complications. 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 challenges so you can live a worry-free life again.
Write down your monthly costs
The first step in taking care of your financial troubles is discover exactly where your pain points are. Whether you’re dealing with a large credit card debt, you’re trying to enhance your retirement savings, or you simply spend too much on dining in restaurants throughout the week, identifying the main causes of your financial woes will reveal to you which expenses must be prioritised so you can get your finances back on course. Grab a pen and paper and jot down your current monthly expenses including debt repayments, bills, food, transport, tuition, and any other items you generally spend each month.
Reduce your expenses
When you’ve got your monthly expenditures in front of you, take a closer look and see which expenses can be reduced and which can be removed altogether. While your mortgage repayments naturally can’t be lowered, you can probably reduce your food bill by only eating at home and even do away with other entertainment expenses such as cable television. It’s significant that you are pragmatic about lowering your expenses. Bear in mind, if you’re trying to overcome financial challenges then you have to make sacrifices to resolve them.
Create a budget
Now that you’ve got your monthly expenses jotted down without the unnecessary spending, you must set up a budget. If you’re not familiar with developing a budget, there are plenty 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 ascertain how much money you have left each month by viewing your income and expenses. It’s imperative that you stick your budget. If you sense that it could be too 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 pain than others, so to lighten your financial strain as best as possible, try to reduce your biggest 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 lower these types of debts as soon as possible. Don’t forget, you still have other fixed debts every month including phone bills and electricity, so these should be factored in too.
Still feeling the heat?
If you’ve lowered your expenditures and made a budget but still find that there’s not enough money to repay all your debts, you’ll have 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 and friends is another helpful way to try to address your challenges. 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 assistance
If the above steps haven’t relieved your financial strain, it’s better to seek financial guidance sooner instead of later. Depending on your individual circumstances, there are a number of choices 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, reach out to Bankruptcy Experts Sunshine Coast on 1300 795 575 or visit our website for more information: www.bankruptcyexpertssunshinecoast.com.au