We have all gone through a difficult patch in our lives and one of the things are usually let go is our finances. The first step is to take on your debt head on. The 6 things to do if you want to get your finances in check are;
- Get a clear picture of your current situation
This will help you assess how bad your situation is so that you know where you stand. The next step since you will be have the numbers, is then to find out you your biggest spending errors and which debts need to be paid first and which expenses you should cut down on.
- Set specific goals with deadlines
Come up with clear and concise goals and set deadlines for your goals. This will encourage you to meet targets and achieve your goals. For example say you owe $2000 but you earn $500/ month and you have other expenses.
You can propose to pay off your debt in $50 instalments for 40 months or in $100 instalments for 20 months. It will also be ideal to consider another stream of income so that you can earn more money and pay off debts faster.
- Come up with a budget
Budgeting will enable you to keep track of your spending and make sure you live within your means. This will make you not to overspend since you will be knowing how much you earn and what your expenses and perhaps you might consider downscaling. Say for example, if you are renting an apartment for $500 you can downscale and get an apartment for say $250 and the other $250, you can cover other expenses, like fuel, groceries and utilities.
- Keep track of successes and failure
It would be ideal to get a financial journal where you can enter all your expenses for the month, so that you stay on track. Only then can you see your progress. Any steps forward no matter how big or small are worth celebrating.
- Organise and declutter the rest of your life
It may not be your financial life that’s a mess, your social life may also be a mess. Let go of some people who are not making you grow, like they say if you sit in a room with 10 fools you are likely to be the 11th.However if you are to sit with 10 millionaires, you are likely to be the 11th and trust me the conversation will be different.
Also declutter your house as well, stop being a hoarder and throw away all the useless things. A decluttered and unorganised house makes it difficult to concentrate on anything.
- Be flexible and adjust
If you consistently cannot attain your goals, readjust them. You have to stay motivated and excited about your progress. Falling too far behind may trigger you to give up. It is better to log and evaluate your failure and adjust figures.
You are not alone in this journey, form support groups with your friends for accountability. Find a financial mentor or advisor and be one for someone else. It will make this whole process easier and it will make it feel really good about yourself.
Xoxo
PR Lady Boss
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