We always talk about ways that you can make extra money or extend your paycheck, but we haven’t identified the hard part, what are you doing that’s keeping you in debt? This is a touchy subject, but recognizing these areas and doing something about them can have the biggest impact on improving your financial health. Check out the 10 areas below and be honest with yourself if you’ve adopted these habits. The first step to making a change, is knowing where the problem lies.
You’re blind to your debts
Have you found that you’re burying your head in the sand when it comes to your debts? Denial is one of the fastest ways to keep you in a debt without hope of getting yourself out. Taking a full inventory of what you owe and being proactive in finding solutions to get yourself out of debt is the only way to get a handle on your debt. Honest debt consolidation services, creating a budget that includes your debt payments, and cutting back on other expenses until you have your debt maintained are all great ways to start this process.
You feel helpless
Being in debt can make you feel very unable to pay them off, which can sink into your confidence. Once again, getting a clear picture of what your financial situation is and taking measures to rectify this situation can create confidence in you to get back on track. When you’re fully aware of your financial health and have a plan to become more stable, then you will have more control.
You’re not paying yourself
Not paying yourself? This can be a huge factor into continuous cycles of debt. What do I mean by “paying yourself?” Making sure that you’re adding some money to your savings account when you get your paychecks. Savings account take a lot of discipline to build up, but having this storage of money can help you avoid putting purchases on credit cards or taking out several loans. Adding $5-$10 every paycheck is small enough that you won’t notice, but with time it will become a great asset for you.
You’re thinking of now more than the future
Getting through this week, this month with the money that you have is the most important thing, yes, but making sure that you’re setting yourself up for success in the future is also equally important. Getting yourself into a financially healthy position is a process that takes a long time, but you have to start today. Asking yourself if what you’re purchasing now is really vital or is it money that would be better saved for a later date. Taking your financial future in your hands means that you have to start anticipating your future self.
You don’t have a plan
Every course of action needs a plan. Sit down yourself or with your family and analyze your income and expenses. What luxuries are you spending money on frequently that you could cut back or eliminate? Even monthly subscriptions can add up. Getting rid of luxuries that you’ve come to love seems impossible, but this isn’t long term. Create savings or other financial goals and use those as incentives. Pay off on credit card? Enjoy a meal out with your family.