is the crisis and economic activity decreases. Many people lose their jobs or seeing their incomes melt like snow in the sun. How to cope if you have debts to repay? A reader asked me over this issue today by mail. I think many readers would be interested in my answer of where this article which may give rise to a discussion with other opinions. I'm not in this situation today but I also know that an outsider can easily take a step back from such a situation. And if these financial difficulties accounted for precisely the right opportunity to become richer?
1. The psychological aspect I know it's cash you need. But come to think of five minutes, you will understand how you look and see things changes everything. I know people who find it normal to be discovered every month. Personally, if I do not precautionary fund my loan in case of need, it becomes my number one priority. As if I was in danger financially. Some years ago I finished, like many, the month with my bank account close to zero. Your way of thinking changes your priorities and therefore your bottom line.
What results will you get if you think you are in for some tough times financially, that you'll have to tighten their belts, you can not do anything? How will you feel ? Would it not be better to tell you that it is not possible, that enough is enough, you never want to find yourself in such a financial situation? You never want to worry about not having enough for your family tomorrow? Rebellion can be a great motivation to change your behavior vis-à-vis money and establish, finally, actions that will help you achieve your financial goals.
If you approach this situation with the best possible mental, you know for example by speaking calmly around and get appropriate help from your friends, instead of being ashamed, to keep it to yourself and you fend for himself. The mind is essential when it comes to getting rich, you leave a debt situation or not makes no difference. If you have the moral socks, you will not have the motivation to perform the actions below, you need to get out.
2. The subsistence
After finding the motivation to financial changes, the first thing to do is find out how much you need minimum each month to pay all your deadlines. What is your minimum required each month? The calculation is fast and very revealing: add up your mortgage repayments, rent, income tax, your subscriptions, ... monthly-annual installments and your (car insurance, local taxes, for example). Browse your bank statements to not forget anything important. Add the minimum that you feel necessary to spend on food each month. The difference between what you spend each month and the subsistence minimum will show you where your money really goes, a question which you did not answer.
Given these minimal expense, make on behalf of your future cash flow. -Is that money coming in the months ahead, this may be your unemployment benefit or only pay your spouse for example, will suffice to cover the minimum? It is possible that at this stage, if you realize for the first time, you finally discover that your income will decline will still provide for your basic needs. But be careful not to be too optimistic about it. Are you absolutely certain of the revenue or simply do you expect? Anticipate the worst case first and let your calculations with your cash flow some. It is better to plan for the worst rather than to note that all calculations have been for nothing.
3. A better job of defending your
In all cases, but even if you find that you can not meet the minimum expenditure calculated, the first solution to consider is to reduce your expenses. It is faster to reduce your expenses to find money. Defend the money that your hard-earned against these small desires which are placed end to end than you have nothing left. Take your list of essential expenses and see what subscriptions you can cancel or reduce. Consider changing housing to pay a lower rent. Imagine what you could reduce costs on activities that seem necessary but you are more in tune with your new financial goals. Sift through the numbers of all your expenses to see how each can be minimized (ie not spending at all).
4. Improving your attack
The second step is to increase your revenue and thus your income. A good offense should allow you to score points, that is to say to win more. The objective is to achieve minimum cover your expenses, you just calculate the more accurate and even allow you to spend more than this minimum. In this case, I advise you with the money you have in addition, begin to build you a precaution fund (or the bail). It will be very useful if ever a financial problem further happened. From my perspective, it's best to put your money in your fund carefully (by between 3 and 6 months of expenditure) than trying to repay your debts faster. Then you can start repaying your debts, paying the smallest first, because it's good for morale to have debts and less. Mathematically it would be better to repay the first one with the interest rates the highest, but as explained earlier article, it is the mind that you must work.
Find additional revenue sources. Sell all what you do not need your car for example, to buy cheaper clothes, your furniture lurking in the attic. In practice, all that you have not served for a year can be sold. Offer to teach or render service in your area of expertise. Find odd jobs to supplement your main temporary. A previous article you list 13 real ways to earn more money . You should find some ideas.
If you follow these four steps, you will spend in fear to control your budget by developing healthy habits vis-à-vis the money. These four steps are not sufficient, or for more complex cases, or duration, but are a good foundation to start on the right track in the right direction. A strategy to follow when the bad news flowing. For the improvement continues and allows you to get richer, you will among other establish regular monitoring of your budget .
Have you ever experienced a debt crisis with pay cut? How have you faced and what advice would you give? What are the points which you consider essential? If you've never lived, try to imagine what actions you would consider to priori. What other milestones would you add?
Credit: Jen_Maloney_Photo
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