No one wants to be in Financial Trouble. But, there are just some things in this world that are inevitable, no matter what you do. Getting in Financial Trouble is one of them. This may be caused by being unexpectedly sacked, your family business going down, or you spending more than you’re earning. And when you find yourself drowned by debt, and being in the midst of bankruptcy, you will think that it is the end of the world and instead of looking for a way to get out of it, you feel miserable. This is wrong. Getting out of financial trouble though is relatively easy once you get enough courage to face it.
Determine the Problem. First of all, you need to determine the source of your financial woes. Is it the lack of income? Then, by all means, cut on costs. If you’re running low on money, then you’ll need to cut down on unnecessary expenditures. Make a list of all of your bills, necessities and even “wants”, and cut down on some of them, mostly the “wants”. For example, you’ll be able to live without cable, but you probably won’t be able to live without electricity. Utility bills should be a priority, such as water and electricity, and so should be money for groceries, food and daily needs. If you have money left, do not go on and buy things you want, save them for your future or for any emergencies.
Be Honest with Yourself. If you’re going to lie, then never lie to yourself. Be frank with yourself. Write down all of your expenditures and see where they are going.
Set up a Realistic Financial Plan and Goal. You shouldn’t only set up a financial plan or goal, but make sure that it is realistic. Try to count on certainties and current incomes. Try not to overestimate your future income. Sometimes, it may pay to underestimate a little, so you have some cushion space if things go badly.
Follow the plan. If you deviate from your plan, you endanger it immensely. With a view to finances, inconsistency is lethal. Once you've put together a plan, stick to it!
Stop using credit cards. Pay cash. Pay off one at a time starting with the smallest owed amounts. The interest rates on credit is what is killing you. You only need to have one card and pay it off each month.
