'Money can't buy happiness'. Whoever said that probably had a generous bank account and no debts, right?
Not having enough money doesn't only deprive people of purchasing the things they need or the new phone they wish to own. It also stresses them out and can wreak havoc on their overall well-being.
This unpleasant situation might be familiar to you too. Perhaps it currently burdens your financial stability and your mind.
Attempts to ignore these issues might work for a while, but being in debt eventually, takes its toll on your life in a way or another. That's why it's highly important to change this in 2018.
Here are 6 useful and easy steps to improve your financial situation and get out of debt in the following year:
1. Acknowledge the issue and decide that it's time to take control over your finances.
Improving your financial situation is a gradual process that takes time. You have to be very committed to it and keep your goal in mind.
Avoiding mistakes that affect your budget and bring along more debts might seem tricky at first, especially if you never tried to control your financial habits before. Yet with motivation and attention, you can manage to build new habits and to erase the ones that might have got you in debt in the first place.
You might require lots of discipline at first. But after a while revamping your finances smartly will come naturally. Noticing how the debts diminish will help you stay on track.
2. Analyze the current state of your finances.
One single debt can get you in a never-ending spiral. Whether you are forced to borrow money to keep paying off other debts or money is never enough, it's time to evaluate your financial situation.
It's important to know exactly where you're standing in order to create a plan for the future. Make sure you perform a thorough evaluation of all financial aspects including but not limited to earnings, bills and money spent on shopping or other expenses.
Don't rely on memorizing everything. Write down the analysis in a notebook or in a file on your computer. It has been scientifically proven that writing down things helps tremendously.
Take some time to go through your bank account and see where your money went in the past few months. You might discover that you've been overspending or using money unwisely.
A few euros here, a few there and it all gathers up at the end of the month. Apparently, small purchases can make a hole of a few hundred euros a month in your budget.
3. Set your priorities straight.
There are things that need to be paid off immediately while others could wait or even be wiped off the 'To Buy' list. Sticking to the priorities can make an important difference in your financial education.
Bills and debts should come first in the list of priorities. Apart from groceries, you should really think twice before purchasing something. If you postpone the purchase for a while, you might forget about it or realize you don't actually need it.
If you have enough money left at the end of the month, don't splurge. Achieving a balance from a financial point of view means that there shouldn't be any room for superfluous expenses. Save to pay bigger debts until you don't have any such financial burden to worry about.
4. Shift your money mindset.
Some people have debts because they have been reckless with their money, while others have just been victims of unfavourable circumstances. Regardless of the reasons behind your debts and financial struggles, you should change your attitude as it could hamper your progress to being debt-free.
Let 2018 mark the beginning of a new approach. If you've been seeing money as a fun tool to go shopping just for the sake of it, it's time to seriously tone this down. Or if you've been stressing out so much because of financial issues that you've forgotten to enjoy life, let go of that destructive habit before it has negative effects on your health.
A poll conducted by AOL and the Associated Press reported that people who stress over finances are most likely to suffer from health issues like headaches, depression, muscle tension or ulcers. You should control money, not the other way around.
Ignoring monetary problems might just push the debt snowball to roll further and to get bigger. The opposite attitude isn't productive either as just worrying about money won't solve anything. Commit to taking action in 2018 without getting letting debt overwhelm you.
5. Educate yourself.
Have a look at your expenses and cut off any unnecessary ones. Think really well before purchasing something and stick to useful things that have a purpose.
This means no more impulsive shopping. The money can be spent more wisely. The best alternative is investments as they can generate further revenues.
Whenever you need to spend a bigger amount of money on a certain purchase such as household appliances, make sure you make an informed decision by researching the features of the product to see whether it fits your requirements. You don't want to spend money on something that will end up gathering dust.
You can replace pricey restaurant or fast food meals with cheaper homemade ones. Say goodbye to paying a few hundreds of euros just for fancy coffee or small treats.
Instead, put aside the money for bills and gradually but constantly paying back debts. Try to organize your budget in a rather minimal way at least until you set yourself free from debt.
If you think investing is just a way for rich people to become richer, you're wrong. Nowadays everyone has the chance to invest and to earn a passive income.
Thanks to the amazing progress of technology, the world of investment has opened its doors for anyone interested in improving his or her financial situation and making smart decisions. While it is true that some platforms are still aimed at big spenders like professional investors, CEOs or businesspeople, there is a great opportunity out there to invest even with small amounts of money.
Fast Invest platform allows people to invest in with as little as 1 Euro. Apart from offering a user-friendly interface that anyone can understand, it features very high-interest rates of up to 13%. This offer is certainly unbeatable compared to old-school banks that give you a tiny 1-2%.
Fast Invest focuses on P2P loans, originating from non-banking lenders, investments. It has been created for Europeans, but has planned to expand internationally, which means you can take advantage of the best investment opportunities in the area. This eliminates the confusion triggered by differences in currencies or other aspects.
The platform uses the latest and most profitable technologies like digital currencies (usually referred to as 'cryptocurrencies'), which skyrocketed in the past few years and keep reaching new records. Fast Invest offers the general public the chance to invest in this highly profitable market. The access to investment provided by Fast Invest and taking the decision to invest instead of overspend will transform the future of your finances for the better.
What to do if you are tempted to get back to detrimental money-spending habits?
This is likely to happen at the beginning of the process when you are getting used to the new routine. Setbacks might occur from time to time, but stay focused.
Picture the negative consequences that will follow if you fail to stick to the steps and get into more debt. Imagine how by the end of 2018 you'll be debt-free and regain that precious peace of mind.
Also, think of the end goal: to have no more debts, to invest and have more money and freedom. Get motivated by the fact that making the right choice will significantly improve your life and allow you to begin a new chapter from a financial point of view. With no debts on your mind but a few investments going on and some passive income, you'll be on your way to be wealthier and more relaxed.
No more debt in 2018
Money might not bring happiness. Yet the lack of it can definitely bring problems. When the debts keep piling up, it is tough not to see the appeal of having a nice bank account.
Yet with a bit of determination, 2018 can be the year when you achieve the financial balance you've been looking for. Reorganize your budget and create a healthier attitude towards money.
In the same time, seek to become informed of the investment opportunities. Joining the Fast Invest platform can be the defining step to explore the universe of new currencies and to take advantage of the free access to investments that can bring you a good passive income.
Don't wait for 2018 to start to set New Year's resolutions. Start right now. Analyze your finances, learn about investments and take the necessary steps to ensure a worry-free future.