When I was in a deep deep mountain of bad debts, those days are stressful nights, feeling of depression and anxiety.
My mind is so distracted about so many things like where to get money for paying hospital bills, medicine, house, utilities and allowance. I am so down at that time.
But the problem will not be solved by mere thinking and worrying,
I will share what I did during those days which may help you if you are currently in this stage of life.
• Know your Financial Status
This will require —— honesty. You have to know your numbers because it will not lie.
Don’t be afraid to see what is your true status. It will not hurt you, those will help you a lot to get out on your financial status.
To know your status, you have to compute your Cashflow and Net Worth.
CASH FLOW = Cash In – Cash Out
Your cash in are money you get from your salaries, other income, sales, proceeds from loans and the likes.
Your cash out are money you used to buy necessities for a living (expenses) and to pay bills or loans.
NET WORTH = Assets – Liabilities
Your assets are what you actually own while liabilities are what you owe or loans.
Your cash flow and net worth should be positive to check that you are financially fine. If this is negative, i think you need to evaluate the numbers by identifying in your Expenses and Loans which can be lessen or eliminated what are necessary or leisure.
• Do your possible actions
Once you have identify your cash flow and net worth, you already know your problem and you have to do your first step.
Identify what are your possible actions to fix the problem. Then choose what is the best actions and try them faithfully.
There is no wrong in trying as long as its legal and not harmful to others.
You will never know that there is an answer to your financial crisis until you do something.
If you want different result, do something different.
• Evaluate your outcome.
The decision you make to do an action will have a result. It is either good or bad one.
If you are seeing positive result then keep doing it until you’ve reached your ultimate goal – get out of bad debts.
Bad results doesn’t mean end of the world. It is simple telling you that there is other way to solve your crisis. Try another one and re-evaluate again until you’ve found the best solution for you.
Sometimes, it will effective way for you and for them and sometimes, it doesn’t work for both.
Consistency is the key. Don’t give up!
Getting out of debt is not one snap of your fingers. It will take time with a piece of discipline and attitude.
Better to try than having a regret of not trying anything. Just remember your goal and focus on it. You will be happy than ever if you do this. 🙂
Share your thoughts and comments below. Like if you think this will help you.
PS: You may send a private message if you want me to give some tips.