The family’s requirements sometimes put a heavy burden on some people, especially the provision of basic financial needs such as finding suitable housing, school expenses, education for children and other necessary financial responsibilities. The matter may get worse if the head of the family is exposed to circumstances that reduce his monthly income or increase his financial obligations, such as exposure to a health problem – God forbid – preventing him from practicing his work temporarily, which increases the financial pressure on him as a result of the widening gap between the financial obligations and the monthly income.
In such situations, it is preferable to wait and calmly think to estimate the scale of the problem and then find effective solutions to restore the financial balance.
5 steps to help you get rid of financial stress
1- Determine the size and cost of debt
Before making any decision in order to solve the problem of increasing financial pressures, you must study your current financial situation and determine the issues that have occurred and caused it to become unstable, by preparing a list of all financial obligations and debts with determining the size and cost of each.
[ What is the rule of 50 – 30 – 20 for dividing the monthly salary? ]
2-Realistic financial capabilities
Failure to manage financial matters in a manner commensurate with the monthly income may be the reason for the increase in financial pressures. Therefore, it is necessary to determine the total income that can be collected during the month, whether it is the monthly salary, returns on investments, etc.
Without counting the amount of extra inconsistent income. So you can really determine your financial capabilities away from the possibilities and expectations.
3-Expense management and rationalization
The next step is to reduce financial pressures, which is to manage expenditures more effectively. The priority must be for the basic expenditures, and it is okay if you can reduce the size of these expenditures for a temporary period. It is also preferable to avoid spending on unnecessary or dispensable matters. It may be difficult at first, but with perseverance and an element of will, things will be fine.
4-Develop a debt disposal plan
To get rid of the debts and accumulated financial obligations, it is necessary to determine the priorities for repayment based on the size of the cost of the debt and its due date. The first is to pay the most expensive debt, which is time to pay it to avoid late fees.
Example: Paying credit card debt due to avoid late fees or interest calculated on the amount due, and then paying the installments of financing that are due to be paid, and after that, you can devote time to pay the amounts that were borrowed from family members or friends.
After restoring the financial balance and getting the financial issues back to right, you can take a break and spend time with the family for recreation. This helps to revitalize the activity, reflects positively on future performance and makes the person more able to make correct decisions in the future.
Emergency matters often cause a lot of confusion in managing the family’s finances, so it is necessary to save a monthly amount that is devoted to such cases, such as spending on treatment due to sudden illness – God forbid – or covering the costs of repairing faults that may occur to the car or For maintenance work at home, thus all financial plans will go as planned while avoiding financial pressures.