Are money worries keeping you up at night and impacting your future life? Do you find yourself constantly stressed about your financial situation? Maybe you are looking for a way to get out of debt for free. If so, you’re not alone.
Is there “Too much Month at the end of the Money?” Are You struggling to save, or worried about your retirement? Are you perhaps working in a job that has a limited time span left (nothing is forever see my About Me page for my own experience), a job loss, job uncertainty, rising costs of living, it all adds up, creating stress and all that is inherent with it. So I have put together 5 tips that you can implement. Some are free, and some at the end may require some input.
Today, too many individuals think either that they are secure, or know that they are not… yet do nothing about it.
“I’m receiving the same rate of money each month, but everything else continues to rise steeply, so often it’s a balancing act.”
National Debt line caller
Around 20% of people who found rent or mortgage bills very, or somewhat, difficult to pay reported low life satisfaction and further individuals, through lack of taking action today, are storing up problems for their future…
“I can barely afford the heating and now I’m having to waste money I don’t have to take a taxi to go to the shops in order to top up my [prepayment] meter. […] I try not to use it too much, as I am scared I’ll be left in the dark.”
Audrey, aged 81 years, Citizens Advice user
Many individuals face the daunting challenge of managing their finances in today’s hectic non-stop world. However, with the right mindset and plan in place, you can break free from the worries caused by financial debt stress and pave your way to a brighter, more secure future.
Here are 5 key Points as the frame work for a plan. You can use all, or some, whatever fits, and you are comfortable with.
1. Identify the root of your money worries
2. Budgeting
3. Interest Charges
4. Invest in Financial Education
5. Explore Different Income Streams
Identify the Root of your Money Worries
The first step to overcoming financial anxiety is to identify the root of your concerns. For example, are you:
Drowning in debt?
Struggling to save?
Worried about retirement?
Fearful of your job security?
Pinpointing the specific areas causing stress allows you to create a targeted plan for improvement. Seek Professional Financial advice, if necessary, as navigating the complexities of personal finance requires professional guidance. It might be worth consulting with financial advisors or organisations who can provide tailored strategies based on your own unique situation. I have put some details at the end of the article of organisations that may be worth contacting if you need to start the ball rolling and speak with someone. The hardest part is picking up the phone. To quote a famous sports brand ‘Just Do It’
Budgeting
Budgeting is the cornerstone of financial stability.
Develop a realistic budget that considers your income, expenses, and savings goals. Categorize your spending to understand where your money is going, and identify areas where you can cut back. A well-structured budget is your roadmap to financial success. The plan could even form part of your goals. Once you start on a plan it can truly be life changing and by applying discipline and consistency to your plan you will be on the road to success.
It can be a simple Pad and pen or a more elaborate Excel type of, how to get out of debt spreadsheet. It doesn’t matter. Create what works for you. It’s the fact that you know where every Pound Shilling and Pence goes and what you have remaining at the end of each month that you can put towards other things that matters.
Interest Charges
It is a fact of life that if you borrow money there will be a charge for doing so. Irrespective of credit scoring etc and what products are available, we all pay Interest, be it on our Mortgages, loans, credit cards, Store plans etc. Further, today it is very easy to acquire things ‘Instantly’ especially in todays ‘must have now’ world. Unfortunately, this means it is very easy to store up a future problem with accrued debt, and many people are running blind, toward a cliff face without realising it.
Take charge of your Charges. For example, do you have multiple credit cards? Is it possible to switch balances to one card that has a better lower overall rate? Are you paying off just the minimum balance each month on Loans or credit cards? Unfortunately, this is a big hole to get into as not only will it take an eternity to pay down the amount, if at all, but each month you are building up Interest charges on interest charges.
Can you shop around for better Mortgage rates? Do you really need that second car on Finance? Since the change in work habits and the work from home jobs rise many people have found that a vehicle mostly sits on the driveway.
Again, if you are feeling overwhelmed, and perhaps swamped please talk to someone. There is a solution and a way forward. I worked for a corporate bank, but we had a division set up that deals solely with assisting people and we are not unique here.
Invest in Financial Education
Knowledge is King., especially when it comes to managing money. Invest time in educating yourself about personal finance, investment strategies, Alternative second Income streams and retirement planning. Understanding the principles of financial management empowers you to make informed decisions and build a secure future. It can be as simple as just picking up a book and reading some of the best practices. Interestingly, I have found from my reading that most of the books seem to follow a pattern in their content, I think this proves the point that the information must work.
A few of the best books I have read and recommend:
1. Think and Grow Rich by Napoleon Hill
2. 7 Habits of Highly Effective People by Stephen Covey
3. Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter
Also, like him or loathe him I am told that the new Arnold Schwarzenneger book; ‘Be Useful 7 Tools for Life’ is good, although I have not read it. If you have or you do read it let me know what you think of it and its content.
Explore Different Income Streams
If your current income isn’t sufficient to cover your financial goals, and with not enough left each month putting you in debt consider exploring additional income streams. This could involve:
1. Home Business, in your spare time,
2. Freelance Work, or
3. Passive Income through investments.
Diversifying your income sources provides a buffer against economic uncertainties and means that you do not have all your eggs in one basket.
For example, a home business can really be anything you want it to be. People in their spare time are running part time enterprises ranging from home baking and selling the produce at Markets, through to individuals running large E-Commerce Stores and Online marketing businesses.
There is plenty on the Internet that you can research, but a word of warning here. Be Careful with what you might see, as there is a lot of hype and scam out there. Do your research. And then research again. (Check the article on Passive Income Strategies) Also whatever you chose to do please make sure it fires your passion as otherwise you will find yourself drifting back to re-runs of ‘Dallas’ on tv rather than spending the time on your enterprise.
As a passive Income, If Affiliate marketing sparks your interest, then I would recommend getting a grounding and insight in to how it can work for you, and before you spend any money on a program why not head over to Wealthy Affiliate and have a look at their free sign-up training package that gives you the basics and a plan to get you going and on your way to starting an affiliate business and earning a passive income from it.
What Skills do you have? What is your day job? You may be surprised to learn that you could use these skillsets to assist others such as local trades and businesses. Are you a bookkeeper or work in accounts? Small businesses like Tradespeople need help with their Bookkeeping and accounts. Very often it’s not an area they enjoy. Usually there is the end of financial year panic for these and countless others as they miss the deadlines for filing their Tax returns. Could you help? Think out of the Box. Where can you utilise your day skill to assist in your area and help local Businesses?
Investing is something that is not just for the perceived ‘Superrich’. Today, anyone can invest and there is access to a vast array of choice and plans out there. Depending on what your goals and how much you want to invest are might mean you need to speak to a Financial planner and get audited advice. To invest you don’t need thousands. Remember, everything in life starts with small steps, even investing. Small steps in investing can build up over time. Can you spare that cost of a coffee a day to put in a plan. It doesn’t sound much, but as an example, If you had invested the price of a coffee a day, over a year in the S&P Global a decade ago, an article from Nasdaq news states:
I hope that you find a solution if you are looking for a way to solve any debt issues and et me know if you find the above useful or helpful as I can look at further articles on this thread. Are there things here that you could start to implement? And have you read any of the books above, particularly the Schwarzenegger one?
Here’s a little transparency: my website contains affiliate links. This means if you click and make a purchase, I may receive a small commission. Don’t worry, there’s no extra cost to you. It’s a simple way you can support my mission to research and bring you quality content. Thank You for your support.
I look forward to hearing from you.
All the Best
Del.
Here are a few organisations that may be able to help if you need. Please note I do not recommend nor endorse any of these directly. It is up to an individual to see if a solution found here can help their own particular situation and make their own assessment whether to use the services offered by these and other organisations, or not.
UK
https://www.citizensadvice.org.uk/debt-and-money/
https://www.gov.uk/debt-advice
USA
https://www.takechargeamerica.org/
https://credit.org/services/credit-building/credit-counseling/