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The Tough Reality Of Starting From The Bottom With Your Finances

by / 0 Comments / 24/10/2017

If there’s one thing that leaves more people feeling stressed and worried than anything else, it’s money. After all, money is something that none of us are ever really in a position to escape from. Unless you happen to be incredibly wealthy, then money is going to be something that you have to think about pretty much every day of your life. However, there’s a pretty big difference between the kind of worrying that most people do when it comes to their finances and ending up in some serious trouble …

 

When you end up in a really difficult and unpleasant financial situation, it can be one of the most terrifying things in the world. It can be near impossible to see a way out of it. Now, the important thing to remember is that that kind of thinking isn’t going to do you any good. The truth is that there are always things that you can do. However, that doesn’t mean that it’s going to be easy. The reality of trying to get your finances back on track is that it can often be one of the most difficult things in the world. With that in mind, here are some of the tough realities of trying to start over financially after any kind of setback.

Getting a leg up can be difficult

There’s an old saying that goes ‘money makes money’. What that means is that people who are in an incredibly comfortable financial position tend to have an easier time of being able to generate more revenue and income for themselves. However, there’s a mirror image to that circumstance where people who are struggling financially can find it incredibly hard to pull themselves out of that situation. Now, this is not a matter of who works harder or pulling yourself up by your bootstraps or any of that nonsense. The reality is simply that if you don’t have much money, making more is a greater challenge.

For example, if you want to invest in your home in some way, then you may need to take out a loan. If you have plenty of money and a decent credit rating, then that’s not going to be a problem. The people with issues are those who aren’t earning much or don’t have great credit. Luckily there are companies like New Horizons Loans who can offer loans for those with lower credit scores to help them avoid getting stuck in the same situation every time. If you’re trying to pull yourself out of a financial pit, don’t expect financial organisations to give you much of a helping hand, they’re motivated by profit beyond anything else, and those who are struggling financially don’t offer the chance for any profits.   

You’re going to have to make sacrifices

One of the biggest problems that many of us have is that we become accustomed to a certain style of life, regardless of whether we can really afford it. If you’re struggling financially, then you’re not going to be able to do all of the things that you used to. You’re not going to be able to buy a lot of things, eat out every night, or go out to bars every weekend. Not only that but there may be other significant sacrifices that you’ll need to make. For one thing, if you’re really struggling then you may need to downsize your home. You might be living in a home that you really love, but if you’re not able to afford it, then you’re never going to be able to get your finances in order. Selling up and moving to somewhere more affordable is often the only option for a lot of people. Not only that but any money that you make from selling your home can potentially go towards helping to cover any debts that you might have.

There are no easy solutions

It would be wonderful to be able to say that there are a few simple things that you need to do and POOF! Your money problems are all magically solved. Sadly that’s just not the world that we’re living in. The truth is that the road to financial recovery is a long and complicated one. It requires a lot of patience and perseverance. This means that there may still be nights where you wish that you could avoid feeling as though money was the most important thing in your life. Sadly, there are no life hacks for getting your finances back on track. You’ve just got to have some patience and try to hold on as best you can. Don’t assume that things like credit cards are going to be the perfect solution that you really need. In truth those kinds of quick fixes are, at best, just going to act as temporary solutions and, at worst, they could actually make the situation far worse than it currently is. Quick fixes might be tempting, but the long road is far more reliable in the end.

Sometimes you need to ask for help

People are weird when it comes to talking about money. They see it as rude or vulgar in some way. And sure, there’s something a little bit gauche to bragging about how much money you have as if that makes you seem better than other people, but that doesn’t mean that you should try and hide if you’re in any kind of financial difficulty. No one worthwhile is going to judge you for needing a helping hand now and then. Being able to speak to your family and letting them know that you need help can be a huge relief. Whether you need a little extra financial help from them or you simply want someone to talk to about the cause of stress in your life, there’s nothing wrong with needing to talk to someone. Of course, if you need more professional advice then there are plenty of money and debt based charities who can offer helpful, practical advice on exactly how you can go about making sure that your finances aren’t dragging your entire life down.

There will probably be knockbacks

Sadly, the journey to financial stability isn’t exactly the straight line that many of us would like it to be. Instead it is more of a loose, rocky cliffside that you’re trying to climb while constantly in danger of losing your grip and falling down again. That’s not meant to make you feel panicked or think that there is no point trying. It’s simply there to help you avoid feeling shocked or overly discouraged if you end up in a position where you’ve fallen down, and your finances have taken another dip. The truth is that knockbacks are almost certainly going to happen but that doesn’t mean that you should get discouraged or give up. Even if you’re taking two steps forward and one step back, you’re still moving forward. The path to getting your finances back on track is almost certainly going to be a long one, and there’s no chance that things are going to go smoothly the entire time.

You’re your own worst enemy

In reality, there’s just one thing that is more of a danger to your finances than anything else: you. The truth is that most of us simply aren’t fully aware of how much we’re spending on a day-by-day basis. Sure, most of us would pause before spending huge amounts of money on one thing, but we don’t do the same for spending the same amount in smaller increments. It might seem like spending a little bit here and there won’t make much of a difference, but the truth is that those kinds of purchases can add up incredibly quickly. The best way that you can deal with that kind of spending is to create a clear and strict budget to work from. Then you should keep it somewhere you can see it and keep a close eye on it at all times. That way you’re going to be fully aware of exactly how much you have coming and going on a daily basis, and you’re going to be much less likely to end up spending more than you really have. Being disciplined with your money can be incredibly difficult, but it’s one of the most important skills to develop if you want to get control of your finances.

None of these points are meant to scare you or leave you feeling hopeless. However, if you try to deal with your finances without being aware of these things, you’re just going to end up falling into the same traps time and time again. Not only that but if you’re not careful, you could end up getting into even more serious trouble than before. By keeping these points in mind, you’re going to be able to navigate through them more effectively which will put you in a far better position to manage your finances more responsibly and get back into a comfortable position.