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Are you currently going through a difficult period financially? This is something that is incredibly common and can cause a tremendous amount of stress and anxiety, so much so that it can interfere with your entire life and cause mental health problems. It is understandable why money difficulties can cause stress and anxiety because it is so important for leading a comfortable lifestyle, so what can you do if you are struggling? It will depend on your individual situation, but there are a few steps that you could take that could help you to improve your situation and build for a brighter future.
Create A Household Budget
Start by creating a household budget to help you feel in control of your spending. Work out exactly how much you have coming in each month and then put a percentage of this towards different areas, such as essential spending, non-essential spending, debt clearance, and savings.
Reduce & Cut Costs
When you create your household budget, you can also list every single regular expense that you have and then scrutinize each one. You might be able to eliminate the cost either for good or until your situation improves or find ways to make it cheaper such as comparing online or shopping in a different supermarket. When you do this with every single expense, it can make a huge difference to your financial situation.
Learn About Personal Finance
One reason why people find themselves in debt and/or struggling to make ends meet each month is that they do not know much about managing personal finance. If you are smart, you can lead a comfortable lifestyle and build for the future on an average income. Therefore, you should do all that you can to learn about personal finance, whether this is with a course, speaking to a financial advisor, or online research (there are lots of good podcasts, blogs and video series for this).
Ask For A Raise
Earning more money is a great fix to your financial situation if you are able to do it. If you have been in the same role for a number of years and you are a valuable asset to the company, then you should speak to your boss about a raise or a promotion – if they are unable to offer it to you now, you should ask what you need to do for this to happen. If there is no clear path, you might want to think about looking for a new job somewhere.
Supplement Your Income
You can also supplement your income with another role. This could include finding part-time work, but if you do not want to commit to another employed role, then you could start an online business, which will be flexible and allow you to work from home. There are various ways to boost your income online in today’s day and age, and this can be a fantastic way to improve your financial situation.
Borrow Money
If you are in need of money quickly, then you might want to look into borrowing, but of course, this is often how money difficulties start, so you may be reluctant to borrow from a financial institution. In this case, you could ask to borrow from loved ones, but be careful as this can change the relationship, so make sure that you come up with a repayment plan that you are happy with.
Move Home
A drastic measure, but one which is sometimes required, is to move home. If you struggle to make ends meet each month and you are spending a large percentage of your income on your home then you may want to downsize and/or move to a more affordable area – although it may not be as nice as where you currently are, this can free up a lot more money which will make you happier and allow you to lead a more comfortable lifestyle.
Sell What You Don’t Need
If you were to look through your entire home and collect items that you no longer want or need, then you are sure to find a large amount that could be sold. This can help you to raise funds while also clearing your home, plus you might be surprised at how much you can earn from selling items like albums, DVDs, games, books, clothes, and similar possessions in bulk.
Get Legal Help With Debt Issues
Credit card debt is on the rise, and many are finding themselves entangled in debt lawsuits filed by credit card companies, which can certainly add to your stress. In this situation, it is best to get help to defend from unfair debt lawsuits from experienced attorneys, which could help you to either avoid or beat a lawsuit. Many collectors use unfair practices, which can sometimes see the lawsuit thrown out, so it is certainly worth speaking with an expert attorney.
Plan For The Future
It is important to fix any immediate financial issues that you are having, but once you start to improve your financial situation, you will need to start planning for the future so that you do not repeat mistakes or make life difficult for yourself. This will involve getting to know your pension and potentially increasing your contributions, setting money aside each month for savings, and setting yourself realistic financial goals for the short and long-term.
Look After Your Mental Health
Concerns about money can certainly be stressful and can lead to mental health issues like anxiety, depression, and stress, which will impact all areas of your life. While money issues need to be addressed and taken seriously, you must also make sure that you look after your mental health and try to understand that money is not everything. You need to look after your health, socialize with friends, get enough sleep, and speak with a mental health professional if you are worried about your wellbeing.
Hopefully, the information in this guide will come in useful and help to overcome financial difficulties.
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