Financial stress can be resolved, but first you must face reality, admit there’s a problem, and take positive action to regain control over your finances. Follow these seven simple steps to achieve financial freedom, and say goodbye to your money worries.
1. Recognise the ten warning signs of financial stress
– Do you dread opening the mail for fear that it could be another bill?
– Are you juggling maxed-out credit cards while only meeting the minimum monthly repayments?
– Are you frequently late paying bills?
– Are you behind on the mortgage?
– Is your car or house at risk of repossession?
– Are you relying on credit cards to pay for basics like food and rent?
– Are debt collectors harassing you?
– Do you actively avoid thinking about your financial situation?
– Are you losing sleep?
– Are you feeling overwhelmed with no light at the end of the tunnel?
You’re not alone! In today’s culture of excessive consumption, Australians are increasingly finding themselves facing similar financial difficulty.
2. Face reality
Your good credit has turned into bad debt, but that’s not a sign of weakness. It doesn’t make you less worthy than others. You’re simply experiencing what millions of others are too.
Some of the world’s wealthiest people have at one stage in their lives faced major debt issues. You can and you will recover, as many others have done.
But the problem won’t fix itself. If you keep ignoring the situation then it will only grow worse. You need to deal with it.
Recognise that you have a choice. Take command of the problem before things spiral even further out of control. By acknowledging and identifying the precise issues you face, you can effectively find the right solutions.
3. Relax and think positively
Anxiety constricts your thinking and inhibits your ability to make sound decisions. Negative thoughts aren’t going to help you feel better about your situation!
Adjust your self-talk to improve your mental attitude. Instead of internally saying, “I can’t increase my income”, try saying “I can and I will reduce my spending!”
It’s not easy to remain relaxed about your finances when you’re surrounded by negativity, so avoid the triggers that might spark your anxiety, for example you can reduce or eliminate the amount of time you spend on financial news reports and websites.
4. Adjust your priorities
We live in a ‘spend, spend, spend’ culture. Modern society gives us an unrealistic expectation of what we think we need and deserve to possess. Do you really need the latest iPhone or brand new car?
A time of financial stress can act as a catalyst to reassess our priorities. For each item you want to buy, ask yourself, “Is this really more important than paying off my credit card debt?”
5. Focus on your non-monetary wealth
Money isn’t the only form of wealth. Are you surrounded by great friends and family members? Are you blessed with good health, creativity or talent?
Financial stress has been linked to health problems, depression and relationship breakdowns. Try to maintain a regular healthy lifestyle. Activities like exercise or meditation can help keep you calm and grounded.
Take time out to completely forget about your financial problems. Spend time with your partner and kids, or immerse yourself in your favourite hobby. Concentrate on the positive aspects of your life!
6. Seek debt advice
Conversations about money can be stressful, but discussing your financial difficulties with a trusted family member, friend or a friendly Debt Busters consultant can help you share the burden. We can offer debt management advice and potential solutions that you may have overlooked. View our debt solutions or fill in the enquiry form below to speak with one of our friendly experts.
Always remember to be honest, lay your numbers on the table, and keep an open mind while you discuss your situation and possible solutions.
7. Create a plan and follow it strictly
In order to escape the debt trap you must spend less than you earn. Make a budget appropriate to your income level, ensuring you spend in a manner that frees up money to pay off your debts as rapidly as possible.
You can build a secure long-term financial future by changing your spending habits. Rather than wasting money on unnecessary material possessions, reduce your stress by committing to a sensible debt management and savings plan.
If you relapse into old spending habits, don’t give up too quickly. Learn from your mistakes, adjust your approach, and keep trying. Failure is just part of the learning process.
After you’ve repaid your debts you’ll gain financial confidence and financial liberation. With your new ability to manage your money, you’ll enjoy a better quality of life and be able to continue saving for future needs – including for your retirement!
We’re here to help! Call us on 1300 368 322 or book a free phone consultation to talk with our friendly team and we can discuss debt management options specially focused on your personal situation.