How to Fight Financial Despair in a Tough Economic Situation
Presented by Honey B Wackx
The current economic situation we are experiencing today has caused many people to take a hard look at their finances. If you are one of those people, what you see may depress you. But, you can fight that desperate feeling and win with a few tips to get you hoping again.
Are you living with debt? At least half of us are. That causes financial despair that many people have a hard time handling. Knowing there is no extra money for emergencies or that if a spouse loses their job you’d be sunk, that’s a constant worry for many people. Financial despair can take its toll on you and your family. But you can get help. Below are a few tips to help ease the situation.
A Few Ways to Fight Financial Despair
* Talk to a financial advisor – This person can give you recommendations on what you need to create a secure financial future. You already know that you need to get out of debt. They will take it one step further and let you know where you to funnel your money so you can manage debt and have money put away for the future.
* Get your family involved – We often think that children can’t handle hearing “grown up” things, but they are also willing to jump in and help for the love of their parents. Have a family meeting and inform everyone of what you are trying to do (pay off credit cards, create an emergency fund, and pay off the car or mortgage, save money in general). Ask them for possible solutions to help solve the family debt problem.
* Create a budget and follow it – No one wants to do it but it can save you a lot of headache later on. Being aware of where you money goes each month gives you power over it. It no longer rules you but you tell it what to do. Start with the biggest bills first – mortgage, car payment, insurance and utilities. Then add in the next biggest money drain – the grocery bill. There are a number of ways you can reduce it to save money.
* Set yourself monthly goals – There is nothing that motivates us more than seeing progress. At the end of each month, tally how much money has been saved and put towards savings. You can use a thermometer chart to show how much in dollars and cents. After about six months, examine the balance. Now, you can decide how to divide the savings – emergency fund and paying down debt. You have to have some place to start.
* Hold each other accountable – When you get home late and you just don’t feel like cooking dinner, resist the urge to pick up the phone and order pizza. Instead, let the whole family pitch in and create a potluck dinner in no time, which everyone can enjoy without breaking your budget.
Are you one of those facing tough financial times? There are ways to help overcome financial despair and look to a brighter future. Following these few tips can help in these tough times.