Get Back On Track With Your Finances

Everyone gets off track at some point.

 

If your personal finances have run off the rails, don’t worry- it happens to just about everybody.

It’s important to get back on track, because you can’t afford to be lax with your finances, and you may dig a financial hole very quickly. Getting back on track with your finances is not an easy task, and it takes time.

 

But- like many difficult tasks- it can give you peace of mind, once you fix your finances.

 

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No matter what kind of trouble or difficulty you might have gotten into, or who you owe money to- even someone as unusual as a bail bond company– it’s important to know where to begin.

 

Consider these tips to build momentum and get back on track.

If you’ve had a financial setback, this article can help.

Contact, Contact, Contact

 

It might be that you’re willing to take ownership of your finances and make improvements, but your creditors won’t know that until you tell them.

 

Call them.

 

You might use debt management company to negotiate on your behalf, but simply letting them know you are actively taking on the debt and trying to resolve it might help you arrange certain important benefits, such as negotiating payment plans.

Use this site to apply for a loan Find My Rate at Social Finance Pay off credit cards or invest in a major purchase

Organize & Assess

 

It’s important you realize how to organize and assess your current needs when getting back on track.

 

This means stopping the habit of burying your head in the sand, and taking an objective, clear look at the current situation you are in. Calculate how much money you owe exactly, and if you’re not sure, it’s your legal right to request proof of debts owed from your creditors.

Know what your credit score is. Draft a budget, and create a line item for each category of spending- both fixed and variable spending categories.

Many freelancers and business owners may have times when cash flow is a problem. Use this site to apply for a loan Find My Rate at Social Finance in order to cash flow your business until you can collect receivables from customers.

 

When it comes to budgeting, keep these factors in mind:

 

Discipline and Time

 

With discipline and time, I think most people can get their finances back on track. But getting on track requires change- which is precisely why most people don’t make the effort. The changes I’m suggesting involve an old friend:

Delayed gratification

 

Some decisions are relatively small:

• Dropping a subscription music service and just listening to the free version (Pandora, for example).
• Making coffee at home two days a week, which means that you stop by Starbucksless often.
• Buying afew more generic products when you go to the grocery store and Target. (I’m not going generic on salad dressing, however).

 

Since these are smaller decisions, the amount of gratification you’re delaying is small. You don’t mind listening the commercials on Pandora (I certainly don’t- I just turned down the sound), and the coffee at home isn’t bad.

Other decisions are bigger- but start budgeting by getting a “small win” – make some small decisions.

 

Remain Current

When adjusting your lifestyle to your current debts, it’s important to remain current on all of your required payments. What does this mean? Well, neglect taking on any new financial burdens or responsibilities until your debts have been paid.

 

That can be a tough decision.

 

This might be postponing upgrading your living situation. It certain means holding off on starting a family. It means prioritizing your sources of income above all, such as improving your performance at your job. You might decide to sell your vehicle and use public transport to get to work.

 

You Can Do It

 

If you create a plan and have the self-discipline to stick with it, you can get back on track. You got this!

 

This post is for educational purposes only.

 

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

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl