Dealing with financial stress is common. Around 36% of Canadians suffer from some sort of financial issue. Why do so many people have money issues, though?
Even during a thriving economy, Canadians struggle. What’s the underlining issue here? Most people don’t know how to manage their finances correctly and when faced with financial trouble, they don’t know how to deal with money issues either.
Most are not taught in school how to properly maintain their finances, pay bills, keep priorities in check, etc. If you’re one of the many Canadians struggling with financial issues, then it’s time to learn how to deal with and eliminate money troubles today.
Our guide below lists several ways you can start tackling your money problems and get yourself back on stable ground. Continue reading below to find out everything you need to know!
Create a plan for yourself
The first step you should take is to create a plan for yourself. When you’re able to write out a plan and look at each day, it helps you stay on task and work towards your goals.
You’ll want to write down your biggest money challenges you face. Are you in debt with a few credit cards? Do you owe a large amount of money to a lender of another sort?
List out your financial priorities. What needs to be paid off first? Which debt is weighing you down the most?
Are there financial goals you want to meet? How much do you want to add to your savings each month? Is there something you need, but must save for?
Be realistic as well. Don’t give yourself goals that aren’t realistic for you to meet, such as placing $1,000 into your savings within one week if you’re only paid around that amount each paycheck.
If you’re in a relationship, then you should make sure your partner is on board with your plan. If only one of you is on board with the plan but both of you have access to your funds, then this could set your plan back.
Be sure to write out solutions for each challenge and goal as well. An issue without a solution is still an issue. When you have a solution, it becomes a small hurdle for you to overcome.
Start taking small steps
Once you have your plan written out, start taking small steps towards meeting your own expectations and goals. Taking small steps pairs with creating realistic goals for yourself. In what ways can you start cutting back on spending without making any big lifestyle changes?
Which bills can you reduce, if even by a small amount? Do you pay extra for a cable package? Do you have add-ons on your phone bill?
Which bills are more so wants rather than needs? Cut back on these types of bills. You don’t have to eliminate them completely, but you can make small steps by cutting them back some.
Stick to cash only
Although there’s not much of a need to carry cash on you anymore, sticking to cash only can help you keep track of your spending and become more aware of your spending habits as well. Give yourself a budget for the week, 2 weeks, or the month.
Take this amount out in cash and only use the cash. When we use our debit and credit cards, we can still keep track of spending but doing so takes more effort. It’s easier to spend more than anticipated when we’re not forced to see the actual cash.
Cash in hand means you’ll know exactly how much you’re spending and how much you have left to spend.
Make minor adjustments
There are some minor adjustments you can make to your daily schedule to reduce spending as well. These adjustments require you to give up an expensive want and replace it with a more realistic option.
For example, if you eat lunch out each workday, you can opt to make your own lunches at home and bring them to work instead. You should also consider which expenses can you reduce altogether.
Spending money at the nail salon every 2 weeks or buying new sporting equipment each month might be 2 things you can cut out completely until your finances are back in order.
Pay off your debt to build credit
If you have a lot of debt, then you’re most likely familiar with the challenges that come along with it. There are loans for bad credit that you can take out to help you get back on your feet but in most cases, you’ll face hardships trying to purchase a home, a car, or take out a serious loan when you have bad credit.
The most essential thing you can do is start to pay off your debt and start to build your credit. Which debt is affecting you the most? Start with the ones that make the biggest impact on your credit.
Pay these off little by little, and you’ll soon see your credit score jump!
Give yourself a surprise-spending budget
If you tend to spend money when going through emotional struggles, then you’re not alone. Many people turn to money spending in order to ease their minds. Retail therapy can have its setbacks, however, if you don’t have control over it.
A great tip is to give yourself a surprise-spending budget. Set a certain amount of money aside each month to be specifically for your retail-therapy spending. It’ll make you feel better about spending the money and reduce any associated anxiety that comes along after the fact.
Eliminate your money issues with this guide
Suffering from money issues? You don’t have to any longer. Use the tips listed in this guide above to lead yourself down the path to financial control.
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