There’s no question that financial difficulties can inflict a lot of anxiety in our lives. Continually thinking about how you’re going to pay your bills not only makes you distressed, but also puts stress on your relationships, your family, and your health. The fact is, stressing over money isn’t going to fix your financial complications. If you’ve found yourself in a situation where you’re struggling to make ends meet, here are the best ways to manage your financial difficulties so you can live a stress-free life again.


Write down your monthly costs

The first step in dealing with your financial complications is uncover exactly where your pain points are. Whether or not you’re dealing with a large credit card balance, you’re attempting to enhance your retirement savings, or you simply spend too much on eating in restaurants throughout the week, discovering the main causes of your financial problems will reveal to you which expenses must be prioritised so you can get your finances back on track. Get a pen and paper and jot down your current monthly costs including debt repayments, bills, food, transport, tuition, and any other items you generally spend every month.


Cut back on your expenses

When you’ve got your monthly expenses in front of you, take a closer look and find which expenses can be lowered and which can be eliminated altogether. Even though your mortgage repayments certainly can’t be decreased, you can most likely reduce your food bill by only eating at home and even eliminate other entertainment expenses like cable TV. It’s imperative that you are pragmatic about cutting down your expenses. Keep in mind, if you’re trying to overcome financial troubles then you need to make sacrifices to resolve them.


Develop a budget

Now that you’ve got your monthly expenditures documented without the unnecessary spending, you have to construct a budget. If you’re unfamiliar with developing a budget, there are plenty of terrific apps you can download on your smartphone. Personally, I’ve found the Budget Planning app from ASIC to be very helpful:


This will enable you to establish how much money you have left every month by examining your income and expenses. It’s essential that you stick your budget. If you feel that it could be too difficult to do this, add a miscellaneous item to your budget to give you some room to breathe, or even a motivation item to reward yourself at the end of the month for following your budget.


Prioritise your debts

Some debts cause more strain than others, so to alleviate your financial pressure as best as possible, try to reduce your largest debts first. Not only will you be saving money by paying less interest, you’ll also feel far better about yourself. Only paying the minimum repayments on your credit card bill can sometimes take years to pay off, so aim to reduce these kinds of debts as quickly as possible. Remember, you still have other fixed debts each month including phone bills and electricity, so these need to be accounted for as well.


Still feeling the heat?

If you’ve cut back on your expenditures and constructed a budget but still find that there’s not enough money to pay off all your debts, you’ll need to find other sources of income. Are you able to work a second job? Can you sell any expensive household items that you can do without? Reaching out to family and friends is another effective way to attempt to resolve your difficulties. Whatever you do to get extra money, never get a personal loan from the bank to pay off your existing debt – this will only worsen an already stressful situation.


Seek financial assistance

If the above steps haven’t relieved your financial pressure, it’s better to seek financial advice sooner rather than later. Depending on your individual situation, there are numerous options available like debt consolidation loans or debt agreements which can help those in need. Don’t fight your debts for years before seeking help, talk with Bankruptcy Experts Rockhampton on 1300 795 575 or visit our website for additional information: