If you are in financial trouble, it’s not easy to stay relax. It’s the worst thing that could happen to anyone. But you don’t need to freak out. Even if you have lost your job and can’t pay your mortgage or need IRS tax debt relief. Getting nervous about it isn’t going to help you solve the problem. Here’s a checklist that will get you to a solution much faster.
Pretend you Are Stupid
If you think you know the cause of the problem, you can be wrong. You are wasting your valuable time and energy on figuring out the problem rather than solving it. You should start over and think from the beginning to make sure what the real cause of the problem is.
It’s All In The Family
The next step is to tell the family about the problem and identify it together. Without a concentrated effort by everyone in the family, you`re headed for trouble with a capital T.
Furthermore it could be the worst moment of your life as most relationships end up because of financial troubles. If you aren’t on the same page with your spouse when it comes to this, and you want things to get clear, it makes the most sense to see a marriage and family therapist before taking any decision. If you don’t do it on time, you`ll be spinning your wheels and your family will remain in emotional turmoil.
Devise a Plan
To get out fast from the financial trouble, you should know about your spending. Forget about the debt for a moment and think if your spending is more than the average money you are bringing in, immediate action is required in that case. Figure out what the shortfall is and do whatever it takes to cut your spending. Your spending should not be more than 80% and if it is greater than the stated ratio, you need to cut it.
On top of it, you can’t neglect the debt factor. There are a number of steps you can take to clear your debts. Planning is required for every work. First of all calculate how much money you can apply towards that debt and then estimate the time period for clearing the debt. This way you will be patient and won’t make mistakes.
Execute the Plan
Now that you have figured out the problem and have a plan to counter it, the next thing should be how to execute the plan. What and when are you going to take the action steps? To make things easier, make a separate diary for the planning and write down each step and date you`ll implement those steps. Things like when you are going to look for a new job or the magazine subscriptions needs to be cancelled.
Set Up a Budget
There are some things that you need for your survival, or you can say they are essential for you like water, food and clothes. When you are in financial crisis, it doesn’t mean that you stop spending on some necessities. However, you can set up a budget and buy them in a limited quantity rather than going for bulky buying. You need to setup budgeted amounts and track your actual spending tracks with those budgets. Tell this to your family as you will be able to save money but it will be difficult for them.
Commit to Another Human Being
This step helps reinforce all the above stated steps. Making this step will push you to go further than you could have thought. There is just something magical about this step. Telling your plans to someone who you respect and trust will help you and trust us, they will not disown you but will encourage and motivate you in every step. Keep up with the practice and call the person often and tell them about the results of your step. This will surely help you get out of the situation far more easily.
You should always be prepared for financial problems because time never stays same for anyone. But you can always prepare yourself by saving some amount from monthly pay. People lose their family, there are separations and kids indulge in bad habits and destroy their future. Keep yourself prepared and safe from these sorts of misfortunes.