Have you incurred liabilities? Are they stressing you out? If they are, then you need not worry… you are not in this alone!
Many Nigerians are facing one financial debt or the other, or running low on finances. The recent increment in the price of fuel, the outrageous price of tomatoes, increase in transportation fare and other strenuous factors have not made it any easier.
Facing your debt now is a huge step into financial growth. Put-off that procrastinating attitude toward repaying your debts, as it only grows from time to time. Face it once so as to ace your financial status. Recovering from debt and putting your expenditure under control can boost your financial and psychological well being.
Here are four ways to get out of debt and be more mindful about your money;
- FIND OUT YOUR FINANCIAL STAND
You need to find out where you stand financially. Review your expenditure history, this may open up/alert you to areas in which you have over spent or made mistakes in payment. This can be done by reviewing your monthly account statement, as they point towards areas where you over spend. And, by knowing where you stand now, you will be able to clearly see a path forward.
- REDUCE THE COMPLEXITY OF BUDGETING BY USING BUDGETING APPLICATIONS AND SOFTWARES.
Another key concept to becoming a master of your finances is budgeting. Budgeting helps you plan your expenses, as well as save up to pay debt.
Budgeting used to be a hassle, but modern apps like Mint make everything easier by automatically importing your financial activity and reminding you about upcoming bills. The best tools offer alerts and financial suggestions to help you make informed choices instead of muddling your way through and hoping for the best.
- FOCUS ON ONE DEBT AT A TIME
Focus on one debt at a time, this is a very wise thing to do as it helps clear one huddle before the next huddle. You cannot expect to have enough to save or plan for the future if you spend all that you have currently on clearing debts. This is why it is more advisable to clear one debt before moving on to another.
Once you choose which debt to work on first, pay the minimums on all other outstanding debts, and put every leftover dime toward the debt you’re targeting. Repeat until the targeted debt is cleared, then choose another to tackle. There are no shortcuts, and you may have to make difficult spending choices, but it’s better than having debts go into collections.
- MAKE PERFECT USE OF UNEXPECTED INCOME
Don’t just spend that money you received as gratification or end of the year bonus or birthday bonus anyhow. You have got to spend them wisely, even if you do not include such in your budget, you still have to spend them wisely and they could also help reduce debt.
Most people have tasted firsthand the tranquility that comes from having enough money to meet an obligation, however small. Imagine enjoying that feeling thanks to education and intention, not by happy accident.
The RenMoney Blogger.
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