Hey there! If you’ve been feeling a little financially down in the dumps lately, you’re not alone. Many of us go through times when our money situation feels a bit bleak. This can be in the form of financial stress and economic hardship. There are times when we may feel a bit stagnated in how our money is being managed, and facing difficulty in managing our financial circumstances. Sometimes this is even possible due to money income decline as well.
But don’t sweat it too much! Here we can start our upward climb by cosidering these three simple steps to help you shake off that financial malaise and start to get back on track.
Step 1 – Assess Your Current Financial Situation
First things first: It is time for a financial check-up. In order to know where you are going you must know where you are at present with facts and figures. Toughen up, and see your position today.
Grab a cup of coffee, find a comfy spot, and take a good look at your income, expenses, and savings. Write everything down! It can be daunting, but having a clear picture of where you stand is crucial. Are there areas where you are overspending? Are you saving enough?
This step is primarily all about awareness. You cannot improve what you don’t understand! What will show is a plot of what is the biggest spend and this is the way to see if what we are spending the bulk of our finances on is really worth it.
Additionally this also shows where there are any money leaks, that you may have not detected. Knowing where those leaks are, will also ensure that you are informed to reduce the hidden outflow of money.
Step 2 – Set Clear Goals
Now that you have gotten a handle on your finances, it is now time to set some goals. It is here that you now ask yourself questions such as – “What do you want to achieve financially?”
It is to pay off a debt? Are you now building an emergency fund? Hey, maybe it is to start saving for a vacation, or to build up your pension/retirement fund. It may even be to start investing in bonds or mutual funds. The optimal thing is to make sure that your goals are specific, measurable, attainable, relevant, and time-bound (yes, that’s a SMART goal!).
Once you have a list, prioritize them and create a plan to tackle each one. Having the list is important – now set key milestones and targets that you are looking to acheive along the path. Again, be reminded that it must still be realistic.
Having clear goals can really motivate you to push through those tough times.
Step 3 – Create A Budget
Ah, the budget – the trusty sidekick on your financial journey! This at times can seem a bit overwehelming and out of league. When looking at your budget, this is your roadmap, that’s it…
As you start building your budget, this does not have to be a boring nor restrictive task. Life is still “lifeing” and being realistic is much more important. Think of your budget as a tool that empowers you to spend with purpose.
Be minded that there is not necessarily a “one size fits all” guide, but there are general bit to look out for especially based on your current circumstances. Enlist a trusted friend or expert to help get you going.
Use The Technology
There are a ton of budgeting apps and tools out there, that can be tailored to help you. Simply use the one that fits your general lifestyle. Your lifestyle may include the essentials such as food, utilities maybe education. It is also a balance, as you also have to allocate funds for essentials such as mentioned before for saving and investment and maybe even to have some fun! Keeping things flexible and realistic will help you stick to it.
Overcoming financial malaise does not happen overnight, and thats our reality check. However getting started on following these steps, can drive you to a healthier financial future. Keep it positive and motivated. Like we said don’t hesitate to reach out for help or advice when you need it.
You’ve got this!
