Experiencing stress at any time is not a comfortable or positive feeling, but financial stress can be even worse. Everyone wants to feel secure and confident in their financial position, so finding solutions to your money worries can be beneficial to your bank account, as well as your mental wellbeing. To help you get started, we have put together this list of 5 simple solutions to solve your money worries.
- Define Your Financial Position
While it can feel like all of your issues are piling on top of you, it is essential to take the time to consider your financial position and identify where the problems are. Whether it is building debts, the possibility of defaulting, or overspending, it can be beneficial to understand where improvements need to be made. From this, you can plan your course of actions, which could be to search for emergency loans, apply for a financial mentor, or simply seek impartial support from the Money Advice Service.
- Create A Budget & Stick To It
Budgeting is one of the best ways to evaluate your expenses and identify where you can cut back to save some money. Evaluate your income for the next few months and highlight how much you spend on essentials, such as grocery shopping, bills and debt repayments, as well as non-essential spending. This will show you where you can cut back, for example, you could switch bill providers for more comparable rates or shop smarter with own-brand items.
- Apply For A Debt Management Plan Provider
A Debt Management Plan (or DMP) will allow you to pay off your debts at an affordable rate and there are several providers available to help you with this. This type of plan is put in place to pay off non-priority debts, including overdrafts, personal loans, credit cards and bank loans, rather than priority debts, like court fines or bills. That means that DMPs can make your debts much more manageable and give you a light at the end of the tunnel. It can also be beneficial to speak to another person about your position, so you may find a DMP more advantageous than you first thought.
- Try Mindful Spending
It is only human to like treating ourselves every once in a while, but our non-essential spending can contribute to future debt. You should try and take a mindful approach to spending by understanding the link between impulse purchases and negative emotions. While the impulse spend may make you feel great, how does seeing the dent in your bank balance make you feel? You can also look at the value of impulse purchases in hours of work, which could put you off spending, especially if an item cost a lot of money.
- Focus On The Present
It can be very easy to get stuck in a “what if” cycle, where you churn over your past mistakes and wonder how things could be different in the present day. Getting out of debt can be a long haul project, so instead of dwelling on the past, try to think about the present and taking positive steps towards a more financially stable position.
No matter how you choose to tackle your financial worries, the offer of help is always there, either from professional services or from family and friends. If you would like more support, please seek impartial help from the Money Advice Service.