Let’s be real for a minute and say that this adulting thing is hard. Being an adult is no easy task, is it? And when you have kids, this makes adulting an even harder to do. Of course, children are a blessing and once you have them you would never want to be without them, but having a family doesn’t make certain aspects of your life any easier, like your finances, for instance. If there’s one thing that a large percentage of adults struggle to manage, it’s their finances, and it’s easy to see why.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
For many people, finance is a regular source of anxiety, because financial problems can occur so easily. Worrying about your finances won’t solve financial problems should a financial disaster strike, such as you or your partner losing your job, for instance. What will help you though is knowing how to overcome the financial difficulty that you are in and move forward with your lives.
In addition to getting things back on track with your finances, taking a proactive approach to dealing with a financial disaster will help your mental health. You see, finance has a huge impact on mental health and general wellness, which is why it’s so essential that you are clued up regarding the best ways to deal with a financial problem when it occurs, to prevent mental health problems occurring as a result.
Bearing that in mind, below is a guide to the steps that you should consider taking when a financial disaster occurs, and advice about why these steps are beneficial.
Don’t bury your head
One of the worst things that you can do in times of financial stress is to bury your head in the sand and pretend that your finances aren’t in trouble. The fact is that your finances won’t just magically fix themselves – if you are going to get things back on track, you can’t bury your head, you need to deal with what’s going on. If you ignore the problem, it will simply get worse and worse.
The first step to doing that is taking a long, hard look at your finances. Sit down with your partner and go through every aspect of your finances, so that you can identify where the issue is and what steps you can take to fix it. If you don’t know why you are short of money or how much debt you are in, then you are going to struggle to fix the problem.
Be realistic
It’s all well and good creating this finance plans that will allow you to clear thousands of dollars of debt in just a few months but are they realistic? The answer is probably not. You need to take a realistic approach to your finances and realize that if you don’t, things will only get worse. It’s far better to think about what you can reasonably achieve and then create a plan that will allow you to do that.
Part of being realistic is realizing when things are too hopeless to fix in a traditional sense. If you have such a large amount of debt that you physically can’t pay it off, then you might want to consider consulting a consumer bankruptcy lawyer to see whether going down this route could be a good call. It’s not a step to take lightly because of the future financial implications but the fact is that it would be a way to wipe the slate clean and begin again.
Rework your budget
Another way to get your finances back on track is to rework your budget. If you already have a budget in place that clearly is not working, then you need to sit down and rework it and find another approach that does work. If you’re not sure how to do this yourself, the next step is to consider speaking to a financial adviser. While you may not want to spend the money speaking to this kind of adviser, it’s something that is definitely worthwhile doing.
The good news is that there is plenty of support available when it comes to reworking your budget and setting a new one. You may find that utilizing smartphone apps can be highly beneficial when it comes to budgeting effectively. The reason that these apps are so effective is because they can be used to help you keep track of what your incomings and outgoings are and can monitor your budgeting. These apps can even send you reminders when you’re overspending or getting close to overspending. Pretty smart, huh?
Take small steps
You may not be able to magically remove a $500 bill from your monthly bills list but what you might be able to do is reduce the cost of five bills by $100, achieving the same result. If you want to get your finances back on track, it’s important to understand the value of small steps. You can’t rush the process – you won’t magically be able to fix your finances overnight, it will take time and a lot of hard work, but it is possible.
Whenever you feel your motivation not to overspend slipping, remind yourself why you are doing it. Think about what your future could hold for you and your kids if you fail to get your finances back on track, and then consider what it could hold if you manage to stay on track. Find ways to motivate yourself to stay on track when it comes to your financial management, to give yourself the best chance of getting your finances into a healthier state.
So there you have it, a guide to the right steps to take when financial disaster strikes. It’s not easy getting your finances back on track when things go wrong, but what it’s important to remember is that it is possible to get things back on track again and move forward with family life. Be positive and proactive and you can take the steps that you need to, to change things for you and your family, and improve your lifestyle as a result.
