Financial worries are extremely prevalent in the UK at the moment, as economic difficulties have further exposed the tightrope many households are walking with respect to their money. A recent study found that one in three of us have recently been anxious about paying bills, and one in five of us anxious about debt. Financial worries are easy to indulge, but difficult to solve – so what can you do to solve them?
Assessing Your Situation
The first step to solving your financial worries is, quite simply, to define them. What exact form does your financial anxiety take, and does it refer to any specific part of your current financial situation? Speaking of which, a comprehensive understanding of your financial situation as it stands is an essential part of taking your next steps forward.
If you have specific financial concerns, you can get a clearer picture of what you’re dealing with – and if your financial worries are more nebulous in nature, this is the way you give yourself some tangible goals to work on. Start simply, with a basic spreadsheet outlining your income and outgoings each month. From here, make a note of any debt obligations you have, from credit cards to loans and beyond. With all this information, you can establish whether or not your current spending is sustainable – and just what is possible with regards to shoring up your future finances.
Managing Debt
When it comes to tackling financial issues, there is one particular issue which should take absolute precedence over others: debt. Being in debt is not necessarily a bad thing, with credit cards and personal loans often serving useful functions; the difficulty is when you can’t afford to repay the debt – which is when interest rates and late payment fees can plunge you further in.
If you have any outstanding debts in the form of overdrafts, credit card balances or other such loans, your first priority should be to pay them down. Ideally, you want to be clear of high-interest debts before you start thinking about saving for the long term, as debt interest can more-than counteract savings interest. Debt consolidation loans enable you to put multiple debts in one place, satisfying your lenders and giving you more control over your repayments.
Practicing Financial Wellness
With your debt managed, you can start setting yourself up for financial wellness properly. A few simple rules here and there can help give you complete control over your financial situation, and a much clearer idea of how your short term and long term look.
The trick is to strike a balance between shrewdness and enjoyment – or, in other words, to find the fun while acting out your financial savvy. As long as more money is coming in than is leaving (including debt payments), things will work out! And if you add a second job or side hustle to your income, you can find yourself flying towards a nest-egg that all-but eliminates financial worries.
