There’s no question that financial troubles can cause a lot of stress in our lives. Always worrying 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 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 struggling to make ends meet, here are the best ways to address your financial difficulties so you can live a stress-free life again.
List your monthly expenses
The first step in addressing your financial issues is determine exactly where your pain points are. Regardless if 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 throughout the week, discovering the main causes of your financial issues will show you which expenses need to be prioritised so you can get your finances back on track. Get a pen and paper and write down your current monthly expenditures including debt repayments, bills, food, transport, tuition, and any other items you commonly spend each month.
Cut back on your expenditures
After you’ve got your monthly expenses in front of you, take a closer look and examine which expenses can be lowered and which can be eliminated altogether. Even though your mortgage repayments obviously can’t be lowered, you can possibly decrease your food bill by only eating at home and even get rid of other entertainment expenses such as cable TV. It’s necessary that you are pragmatic about decreasing your expenses. Don’t forget, if you’re dealing with financial challenges then you have to make sacrifices to resolve them.
Put together a budget
Now that you’ve got your monthly expenditures jotted down 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 mobile phone. Personally, I’ve found the Budget Planning app from ASIC to be very valuable: 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 each month by reviewing your income and expenses. It’s crucial that you stick your budget. If you feel that it could be too hard 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 sticking to 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 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 reduce these kinds of debts as soon as possible. Bear in mind, you still have other fixed debts every month such as phone bills and electricity, so these have to be factored in too.
Still feeling the heat?
If you’ve lowered your expenses and made a budget but still find that there’s not enough money to pay off all your debts, you’ll have to find other sources of income. 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 and friends is another effective way to try to resolve your issues. 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 guidance sooner instead of later. Depending on your individual circumstances, there are plenty of choices available including debt consolidation loans or debt agreements which can assist those in need. Don’t wrestle with your debts for years before getting help, talk to Bankruptcy Experts Adelaide on 1300 795 575 or visit our website for more information: www.bankruptcyexpertsadelaide.com.au