There are many people in the world who struggle with financial problems due to a variety of reasons. In third world countries, people experience poverty due to things like lack of industry and resources. Here in the West, there are also plenty of people who are not happy with their financial situation. Since COVID came along, even more people are struggling financially.
Lack of finances can cause a great deal of anxiety and can lead to depression as well. Having to worry about whether you have enough money to pay the bills and provide for your family can be disheartening. We all want to have enough, but due to unemployment, poor money management skills, ignorance, and a heap of debt, many families struggle financially year after year.
If you are struggling with depression due to financial problems, maybe it is time to sit down with someone who can offer you some help. You can either discuss your situation with a trusted friend or family member that has successfully managed their money, a financial planner, a life coach, or therapist.
Admit that you are struggling financially and that you want help. The first thing you can do is evaluate what can be done to reduce expenses and increase income. If you have debt, stop using all credit cards and consider cutting them up. Stop spending money on things that you don’t need, such as clothes, eating out, electronics, vacations, and so on. Put a freeze on all spending that is not necessary.
Creating a budget can do wonders for your finances. Many people know this, but they still won’t sit down and create one. Or, they may make a budget, but not stick to it.
A budget is simply listing your income and expenses. See how much money you’re bringing in each month and where it’s going. You may be surprised at how much money you spend that you don’t necessarily have to.
Create a budget listing all your income and expenses. See where you can cut back on spending, such as eating out at restaurants or skipping the daily latte at the coffee shop. There are plenty of online or mobile apps that will help you track your money, and offer encouragement for sticking to your budget.
It will take determination and commitment to stick to your budget throughout the weeks, but it is necessary to cause your financial future to be brighter.
One obvious way to increase your finances is to take on additional work. You may want to take on a second job or try to get a job that pays more money. You’d be surprised at how many people have second jobs, many times working freelance jobs from their home. Check out freelance sites and see if you can utilize skills like writing, photography, design, etc. and offer your services on the side.
If you’re more of a hands-on kind of person, consider taking on more work doing odd jobs. TaskRabbit is a great site to offer handy services, such as cleaning, moving, errand running, shopping, and more.
If you are having trouble making your house payment, consider downsizing, moving in with a friend or family member, or getting a roommate to share expenses. This may seem extreme, but it’s temporary. Once you decrease debt and increase income, you can change your living situations.
Even if you have a ton of debt, start putting money into a savings account every time you get paid. Even if it is only $25, make the effort to put something into savings. Many people spend their excess money after paying their bills instead of putting it into savings. This is one reason they don’t have any surplus.
Take a certain amount of money every time you get paid and put it right into a savings account. Then, don’t touch the money unless it’s an emergency. Even if you save $50 a month, that’s $600 in savings a year, which many people don’t have saved even after working many years. The key is to put the money in savings and then forget about it. Don’t touch it! You’ll get into the habit of saving, and that is a good practice to get into.
Not everyone who struggles with cash flow problems is irresponsible with their money. There are plenty of people who simply don’t make a lot of money and with the cost of living, it can certainly be tough. If you fall into this category, do the best you can with what your income is. Don’t overspend, pay off debt, live within your means, and save little by little.
If you have been irresponsible with your finances, today’s the day to make a firm commitment to take responsibility for your finances and take action to get them in order. Learn about personal finance and invest in your financial future. You’ll likely have to keep reminding yourself that you’re financially savvy and frugal. It’s easy to forget and make impulse purchases, especially if you’ve been doing this for years.
Break bad financial habits and create new, better ones. Watch videos, read books, and listen to podcasts that will encourage and motivate you. There are plenty of people who have gone from broke and up to their necks in debt to financially free with little or no debt.
Money isn’t everything, but it can afford us some peace when it’s flowing nicely, and we have enough to live within our means.
August 16, 2022
August 15, 2022