At some point in our lives we will all experience anxiety regarding our financial security, in fact, it is a normal part of adult life as we have so many responsibilities resting on our performance at work. We are not born with the knowledge we need to successfully manage our finances; it is something we learn or have to teach ourselves, and if we do not, we can end up in debt.
Many people believe that debt is inescapable, so they resign themselves to a life of serial borrowing and worry once they’re in that situation. However, there is a lot you can do to get yourself back on the straight and narrow, and once you’ve done so you’ll have the tools to make sure you never find yourself into that situation again.
One of the most important things you need to do is take a serious look at your income sources and decide whether or not there is anything you can do to increase them. Is it time to find the confidence for a change of career to make the most of your skills, or consider whether or not it would be fair to ask your current employers to review your salary taking into account your achievements and loyalty? Furthermore, is there anything you could be doing outside of work to earn a little extra income?
Do you have any valuable belongings that you never use, that you could sell online? Do you have skills that you could sell on a freelance basis, for example teaching or advising others? If you’re feeling really adventurous, could you start your own business so that the money you make from your work goes directly to you rather than your employers taking a cut?
Outgoings and Savings
As well as trying to top up your income, you need to cut down on your spending. First of all, make a thorough list of all your regular outgoing expenses and separate what you can and could not survive without. It might be time to put an end to any luxuries like music streaming or magazine subscriptions. Secondly, try to re-negotiate some of your regular expenses such as utility bills; could swapping to another provider also help you to save money?
Once you have a firm idea of what needs to go out every month, create a spending budget which incorporates transferring a certain amount into a savings account. Knowing you have a buffer to fall back on will give you great peace of mind as well as helping to keep you afloat in difficult times. If you do come into possession of any unexpected lump sums of money, put them towards to your debts. This may not sound exciting but eventually being debt free will be a huge weight off your shoulders and will leave you with more to spend on yourself.
Manage Your Debts
Lastly, you need to take control of any debt you are in and minimise the threat you are under wherever possible. There are plenty of money advice services which can help you to tackle this as well as companies who can consolidate all of your debt into one monthly payment. Knowing that your debts are under control and that no one will be knocking on your door asking for repayments is worth the fee they charge, plus it’s how to go from bad credit to good credit and begin re-building a reputation as a good investment. Something a lot of people do is try to hide the difficulties they’re having from their lenders, but letting them know can lead to them helping you with new, more affordable payment plans.
Once you’ve upped your income, cut your spending to allow for saving, and taken control of your debts you will feel much happier about your financial situation, and you will be able to envision a future that’s debt free. Any money you earn from then onwards will be available for you to finally spend on yourself. When it comes to clearing debt, money really does buy happiness.