There’s no doubt that financial challenges can lead to a lot of anxiety in our lives. Endlessly worrying 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 straining to make ends meet, here are the best ways to manage your financial difficulties so you can live a worry-free life again.


Document your monthly costs

The first step in addressing your financial difficulties is ascertain exactly where your pain points are. Regardless if you’re dealing with a large credit card balance, you’re attempting to enhance your retirement savings, or you merely spend too much on dining in restaurants during the week, recognising the main causes of your financial troubles will reveal to you which expenses must be prioritised so you can get your finances back on course. Get a pen and paper and write down your current monthly expenses including food, bills, debt repayments, transport, tuition, and any other items you commonly spend each month.


Lower your expenditures

After you’ve got your monthly expenses in front of you, take a closer look and see which expenses can be minimised and which can be cut out altogether. Although your mortgage repayments clearly can’t be decreased, you can most likely decrease your food bill by only eating at home and even eliminate other entertainment expenses like cable TV. It’s significant that you are pragmatic about lowering your expenses. Don’t forget, 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 expenses documented without the unnecessary spending, you need to construct a budget. If you’re unfamiliar with making a budget, there are a number of terrific apps you can download on your mobile phone. Personally, I’ve found the Budget Planning app from ASIC to be very useful:


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


Prioritise your debts

Some debts cause more pain than others, so to lighten your financial pressure as best as possible, try to decrease 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 try to decrease these types of debts as quickly as possible. Remember, you still have other fixed debts every month including phone bills and electricity, so these need to be taken into account as well.


Still feeling the heat?

If you’ve lowered your expenses and developed a budget but still find that there’s not enough money to settle all your debts, you’ll need to find other sources of income. Are you able to work a second job? Can you sell any high priced household items that you can do without? Reaching out to family or friends is another reliable way to try to resolve your concerns. Whatever you do to get additional money, never get a personal loan from the bank to settle your existing debt – this will only worsen an already stressful situation.


Seek financial assistance

If the above steps haven’t relieved your financial stress, it’s better to seek financial advice sooner instead of later. Depending on your individual circumstances, there are numerous alternatives available such as debt consolidation loans or debt agreements which can assist those in need. Don’t fight your debts for years before seeking assistance, speak to Bankruptcy Experts Hervey Bay on 1300 795 575 or visit our website for additional information: