The ABCs Of Getting Your Finances Back On Track
/Few things in this life are as overwhelming as facing financial difficulties. This is especially true when you haven't done anything wrong, but are caught up in the harsh reality that our system is stacked against many people.
Overcoming these challenges is personal to each individual situation. However, the three simple steps listed below are building blocks to help shift your financial health back in the right direction. Just remember your ABCs, and soon you will be able to create a solid foundation.
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Acknowledge
Before taking positive steps in your life, you must first acknowledge the current situation. This includes taking ownership of the choices you made that led you to this difficult financial situation and cleaning up anything related to it. When left untreated, the weight of your past financial issues can stop you from ever breaking free. If you have debt that is weighing you down, you can learn more about debt relief here.
In addition to paying down debt, it is necessary to learn how systemic injustice may have contributed to your situation. Essentially, acknowledging the situation gives you the awareness needed to see all of the causes that led to it. Without this step, you are destined to repeat the same situation.
Balance
While everyone's situation is different, financial difficulties arise because of an imbalance. For example, a divorce can cause an imbalance related to your expenses and current income. Before the divorce, you may have been accustomed to a level of income and now have to adjust because the funds are no longer there. Maybe you lost a job or a huge client which caused an imbalance. Whichever the case may be, balance in your financial life needs to be restored.
This can be done by reducing your spending, negotiating your expenses, canceling unused subscriptions, and being more mindful of how your money is being used. For some people, creating a budget helps with restoring balance. The first step to building a solid budget is knowing how much you currently have to spend. You can do this here.
At Money & Mimosas, we recommend having a weekly money date where you review your income, spending, and reflect on how you can improve your financial situation. This weekly ritual is a simple way to bring awareness to your finances and has a profound impact on creating balance.
Create
Reducing your spending will take a lot of pressure off of your shoulders. However, the road to an elevated financial status is to create wealth on your own terms. Increasing your earnings will give you a cushion for those times when challenges do arise, as well as the freedom to spend without quite so much worry. Creating several income streams is a principle that we fully support and promote at Money & Mimosas. Whether you choose to climb the career ladder or start a business to increase your earnings, having an abundant money mindset is key. You can find out how to attract more money here.
Whichever approach you decide is right for you, increasing your income will allow you to create a solid financial foundation and transcend your current financial challenges.
