How To Make A Fresh Start With Your Finances
Money can cause all sorts of stress and when you are in debt it can sometimes feel like there is no way out. The COVID-19 pandemic has only made this situation worse for a lot of people and if this is something you’re struggling with then perhaps it’s time you got some help.
It can be a difficult thing to face up to, but it’s far better to try and sort it out than bury your head in the sand. So, what are the best options for you so that you can make a fresh start with your finances?
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Talk To Someone
This might be the scariest thing but is probably the first thing you should do. Whether it’s a debt charity or a bankruptcy attorney, it’s best to sit down and discuss your situation and what your options are.
Speak with an attorney regarding legal issues.
It’s important to remember that there is always a way out and there are inspiring stories of successful people who once had nothing but debt and managed to turn it around, so there’s no reason why you can’t do that too. Face the problem and that will be your first step to solving it.
Budget
Once you have sat down and had a look at your finances with a professional, worked out what is coming in, what is going out then you need to change your relationship with money and start budgeting.
It’s important to be realistic in your budgeting, so allow yourself some treats because you will need them, at the same time though you also need to be as strict as you can when it comes to spending your money. There are some really good budgeting apps available now which can help you to budget and because it’ll be on your phone, it will be there as a reminder to keep you on track.
Keep Track
While you should be sticking to a budget anyway, it’s also important to keep track of your spending. This way you can see if your budget is working, if there is a way to cut down more or perhaps you need more money in one area so can cut back on another. Once it’s all there, written down in front of you, money is so much easier to manage and your relationship with your finances will be far healthier.
Start living debt-free
Changing your habits isn’t an easy thing to do, but once you have changed some of them and seen the benefits in regards to your money, you’ll feel a lot better about your finances and hopefully continue to do more.
For example, you can set yourself challenges to live off just cash, other challenges where you can save money and things like when you’re shopping not buying anything on impulse, then in two weeks time if you still want it you can buy it, but chances are you probably won’t be that bothered. There are plenty of ideas and challenges out there to help you and if you take it step by step, you’ll get there in the end.
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Good luck!
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/