Jeopardizing Your Financial Health and How To Turn It Around

person sitting at desk balancing their checkbook

When we are busy enjoying life from day to day, it is not uncommon to simply forget about financial health altogether. After all, why worry about how much money you have left in your bank account when you have credit card funds to help you and your best friend get to the concert you have been talking about for years? Well, unfortunately, neglecting finances is what gets millions of people into serious trouble every year. Luckily there are ways to prevent you from racking up thousands of dollars of debt, and one of them is simply understanding ways you may be jeopardizing your financial well-being and what you can do to fix them.

Stop Overspending and Start Saving

What many consumers, particularly young adults, tend to believe is that opening a savings account is only for people who want to prepare for retirement. That is just not true. Choosing to forego saving any money and spend every dollar every month is hazardous to your financial health and can put you in a horrible situation.

Instead of overspending and putting yourself into debt every month, try to do just a couple of fun things that are more within your budget. Then you can choose to enjoy one huge adventure or invest in a large purchase every few months or so after saving up for it. Not only will this prevent you from digging yourself into a financial hole, but it will also encourage you to save more money and make smarter financial moves overall.

Trust Your Budget

One of the best lessons regarding how to fix your finances is to simply stop relying on your gut for financial decisions. Unfortunately, it is nearly impossible to keep track of your exact income, expenses, payment due dates and other monthly costs all within your head. Many people believe they can do so, but they quickly realize that it is a lot more difficult than anticipated. The best way to track your income and spending is to create a physical budget using a spreadsheet or calendar and stick to it.

Yes, creating a budget takes time, but it pays for itself over and over again. When you build it, make sure to include the amount of all forms of income and when you expect to receive them every month, what bills you owe and when they are due, and your essential expenses — such as gas, insurance, groceries, child care, etc. You should also make sure to include any other expenses, such as shopping, eating at restaurants, travel, transportation, and personal care services, so you know exactly how much they cost, as well as any savings. You can create a budget for a few months at a time, but it is better to create a budget monthly while you still get the hang of it.

Live Within Your Means

While making your dreams a reality is a great mindset to have, it should not be done outside of your means. What many people struggle with when it comes to their financial health is living in a way that suits their circumstances. Be honest about your circumstances, and stop trying to have the lifestyle of someone you’re not. This can be especially difficult for people who are new to dealing with sudden extensive debt. If you are leasing or own a luxury vehicle, frequently take personal vacations, or eat most of your meals at restaurants when you could not afford those items without the help of a credit card, you are likely living outside of your financial means.

Until you get out of debt, it may be necessary to cut excessive items out of your monthly expenses. You may want to consider trading in your car, minimizing vacations, and spending more time cooking your meals instead of getting delivery. While it may not seem ideal, it is key to remember that such changes are just temporary. If you are able to make positive financial changes and work towards an income, savings account, and budget that you can afford, you will have a new range of means that fits your wants and needs.

Face Your Debts Head-On

A common issue for those trying to get a grasp on their financial health is that they have been actively avoiding their debts. Facing them can be difficult, especially if you have not been able to pay them back and you are struggling all around with money. If you are truly searching for how to fix your finances, however, you absolutely have to face your debts head on. By ignoring them, your outstanding balances are accruing late fee and interest charges, your credit score is plummeting, and it is also likely that your mental and emotional well being is suffering as well. But you can avoid this.

If creating a new budget and trying to adjust your spending habits does not work, there are plenty of people available in your area and even beyond that can help you figure out an appropriate solution. You can go to a friend or family member who has gone through a similar situation or even a debt settlement consultant who works to help people get out of debt on a daily basis. Just know you are not alone and that there are plenty of resources available to help you get out of debt and stay out.

Get Help from People You Can Trust

If you’re looking for someone who may be able to expertly negotiate your total debt with a lender and possibly get it lowered by half, do not hesitate to contact Liberty Debt Relief. With a team of experienced debt relief consultants, you do not have to run from your debts anymore. They can help find the best solution for you and set you up for the lifestyle that you have always dreamed up and can actually afford.

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