With the persistent rise in the prices of commodities caused by hyper-inflation coupled with the depreciating value of the Naira especially over foreign currencies, survival has continued to become a big struggle to many.
With this, the situation has become very apprehensive and has continued to inflict financial pains on both the rich and poor regardless of their earnings.
The worst hit are those whose sources of income have been affected adversely and have nothing to fall back on. And in order to survive, some of them have resorted to borrowing; likewise those with meagre earnings just to stay afloat in these dire times.
But, then several individuals despite earning good monthly package are neck-deep in making debts a way of life owing to reckless spending which may lead to financial distress if not restrained.
Do you know that making debts accumulation your source of survival can never guarantee you financial freedom but shame such that you cannot walk tall especially in the midst of your creditors? That is why it will do you good to make the most of your money to avoid debt.
It is quite true that the current economic situation is unfriendly and there is nobody under the planet earth that has not experienced financial pains at one time in life or the other but the willpower to surmount those financial problems will help you to make progress in life.
Besides, one best way to overcome your financial burden is to try as much as possible to live within your income and enhance it if you desire a more worthwhile life for you and your family.
There are various forms of financial hassles experienced by individuals. While for some, it could be their inability to adhere to their budgetary plans but there may be other financial issues they are contending with and as such has led to severe financial hurdles.
But, if you desperately desire to correct a financial issue, you need to try as much as possible to ascertain the basis of the problems to enable you fix them and gain control of your finances.
The following tips may assist you to resolve your financial problems:
Be Honest To Yourself
One way to resolve financial problems is by being honest to yourself. Leaning on your relationships can also help keep you on track. Every single tough task becomes easier with the support of friends and family. So, it is imperative you share your goals for there is no one better way to hold you liable and remind you of what you are labouring for than those you love, trust and reverence.
Be Debt Free
Make up your mind to stay out of debt especially if you desire to experience financial freedom. There is no point to fix your financial problems if you continually go into debt each month. A budget is very vital to all facets of your financial success especially if firmly stuck to.
Create Debt Payment Plan
Since too much debts limits your spending habits or what you can do with your money, there is need to create a debt payment plan if you really want to make ends meet in life.
Besides, this plan will enable you to put the extra money you have on your debts in order to pay it off in good time.
The way it works is to start by listing your debts in the order of the smallest to the highest. And once you have paid off the first debt, you will use the money you were paying towards it and add it to the payments on the second debt. Just continue rolling the amount over until you have cleared all outstanding debts.
You also need to work very hard to make extra money to pay all your debts as this would enable you to have financial peace of mind.
Have A Budgetary Plan
It is important you create a budget for proper tracking of your expenses and if peradventure, you do not have one, it is not too late! The best way to create and stick to your budget is to take a cursory look at what you consume in each category each month and make that your basic budget.
Also, when you are building your budget, you want money allocated to each category to have a place to go so as not to have any left over when you are through.
This signifies that money you put into savings is earmarked as one of the expenses on your budget. Your ability to spend within you budget will help you to rectify past financial mistakes.
Track And Modify Your Expenses
Writing down your budget is the easiest part of budgeting but following it and making adjustments where necessary so as not to exceed it is the most onerous task.
But then, the actual work and victory come when you start to track your expenses and modify it as necessary. You can also use budget software tracking as long as you keep up with checking your daily transactions.
You may also switch to the envelope system of budgeting if you are not convenient with the software tracking. Besides, it is mainly a cash-only budget where you pay cash for your categories such as groceries and entertainment.
The way the envelope system functions is that at the start of a new month, you will put the money you have budgeted for each items or category in an envelope and when you run out of cash, you stop spending. By that, you are adhering strictly to your budget.
Discuss Your Spending Plan
This is crucial for married couples if they truly want to succeed financially.
They will need to discuss on a regular basis about the budget, money that goes out and comes in, and who is spending what and where. The budgeting software will be better for them to use because it can be easily updated especially when shopping. More so, it can stop you from reckless spending even when you are on separate shops.
Have A Grip On Your Money
Most people have problem with their spending habits such they have areas where they constantly overspend. For you to be fruitful when budgeting there is need to resolve the leaks in your spending. If you are finding it difficult to shun impulse buying, ensure you go out with someone who is prudent in spending to help halt your spending when you have reached your limit. It is also advisable not to take your credit card especially when you go a-shopping.