If your finances don’t work, it’s not much comfort to hear that you’re not alone.
Reflecting on the fact that millions of other people struggle with getting ahead financially won’t dissuade the landlord from harassing you for your late rent check or persuade the collection agency rep to give you a break.
It also won’t help you explain to your creditors that your financial difficulties are not entirely your fault because there are many macroeconomic factors that are partly to blame, such as the inequities of the fractional reserve banking system and flat currencies, as well as social inequality, the pandemic, the dysfunctional political system, and the bad economy.
Here’s the thing: despite the many constraints that affect a nation’s economy, some people still thrive. Some people even made a fortune during the great depression.
What do people who thrive in good or bad economies get right? It’s not simply that they have a great income. You could have a great income but still struggle financially if you’re spending more than you’re bringing in. The real secret to success — one you seldom hear about — is that prosperous people have learned how to manage their money well.
With that in mind, here are some tips to transform your finances.
Cast Off Your Debt Burden
If you have a heavy debt burden, it is draining your finances. It’s difficult to get ahead when you’re still paying for all the things you bought some time ago. It might even sometimes feel as if you’re paying twice as much as the original price of the product or service.
If you’re stuck in this situation, Polo Funding can help you out by restructuring your debt load through a consolidated loan that will not only lower your monthly debt payments, but can also reduce the total amount of debt you owe.
But, here’s a caveat: this debt repayment method will only work if you propose a realistic figure to pay your monthly income, a figure you calculate after reviewing your income and monthly expenses. The key to making this plan work is making consistent payments and not taking a break when you need to meet unexpected expenses.
Incidentally, another thing that you’ll also have to do is discontinue those debt-accumulating habits that created your overwhelming debt burden in the first place. You can’t whittle down the mountain if you’re continuing to add new soil.
Set Big Financial Goals
You don’t have to wait to clear all your debts off before you set big financial goals.
Select goals that will either help you earn more by improving your knowledge and skills or select goals that will help you manage your money better. You can also set both kinds of goals.
Once you’ve selected a few big goals, try to be as clear and as precise about what steps you can take to bring them into your reality. You don’t have to have a comprehensive plan. You just need enough steps you can take to start heading in the right direction.
Group your financial goals as short, medium, or long-term goals.
More Money Isn’t Always the Answer
When we have financial problems, we rarely take any action to resolve them because we believe that the solution we need is to get more money. If, for instance, you have high debt, you might believe that all you have to do is get a promotion or accept any overtime that’s available.
While making more will certainly help, you will probably make faster progress by also improving your money management skills. If you get good at money management, then when you do have more money coming in, it won’t disappear as quickly. Rather than focusing only on how you can earn more, see what’s broken and fix it.
Yes, do focus on how you can increase your income, but don’t restrict yourself to that as your only solution. Also, factor in the important role money management plays in building your wealth. A good football team, after all, has both an aggressive offense and a strong defense.
As our second lead editor, Karen Williams provides guidance on the stories Henri Le Chat Noir reporters cover. She has been instrumental in making sure the content on the site is clear and accurate for our readers. Karen prides herself on having clear and concise headlines without resorting to clickbait titles. Karen received a BA and MA from Fordham University.