Tips on How to Manage Your Financial Challenges

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Tips on How to Manage Your Financial Challenges

There’s no doubt that financial concerns can cause a lot of anxiety in our lives. Frequently thinking 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 health. The fact is, worrying about money isn’t going to solve your financial difficulties. If you’ve found yourself in a position where you’re battling to make ends meet, here are the best ways to manage your financial concerns so you can live a stress-free life again.

 

Write down your monthly expenditures

The first step in overcoming your financial complications is determine 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 dining in restaurants throughout the week, identifying the main causes of your financial concerns will show you which expenses should 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.

 

Cut down on your expenditures

When 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 naturally can’t be reduced, you can most likely reduce your food bill by only eating at home and even remove other entertainment expenses like cable TV. It’s necessary that you are pragmatic about minimising your expenses. Remember, if you’re dealing with financial problems then you have to make sacrifices to resolve them.

 

Put together a budget

Now that you’ve got your monthly expenditures written down without the unnecessary spending, you need to create a budget. If you’re not familiar with making a budget, there are loads of terrific apps you can download on your mobile phone. Personally, I’ve found the Budget Planning app from ASIC to be very helpful: 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 examining your income and expenses. It’s critical 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 maybe a motivation item to reward yourself at the end of the month for following your budget.

 

Prioritise your debts

Some debts cause more strain than others, so to relieve your financial burden 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 much better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so aim to decrease these types of debts as soon as possible. Don’t forget, you still have other fixed debts each month including phone bills and electricity, so these need to be taken into account as well.

 

Still feeling the heat?

If you’ve cut down your expenditures and developed a budget but still find that there’s not enough money to settle all your debts, you’ll have to find other sources of income. Are you able to work a second job? Can you sell any costly household items that you can do without? Reaching out to family and friends is another helpful way to try to deal with your problems. 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 assistance sooner rather than later. Depending on your individual circumstances, there are lots of choices available including debt consolidation loans or debt agreements which can help those in need. Don’t fight your debts for years before seeking guidance, speak to Bankruptcy Experts Kalgoorlie on 1300 795 575 or visit our website for additional information: www.bankruptcyexpertskalgoorlie.com.au

 

By | 2018-09-21T00:19:57+00:00 September 21st, 2018|Article, bankruptcy, blog|0 Comments

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