Overcome Financial Hardship by Changing Your Mindset

Overcome Financial Hardship by Changing Your Mindset (Image Source: Shutterstock)

Change Your Money Talk

The way you talk about money reflects the way you think about it. If you have a negative, glass-half-empty attitude toward your finances, you will talk about it in a negative way. Do you say things like, “I’m always so broke,” or “I’ll never be able to pay off my credit card”?

3 psychological tricks to help you save money | The Way We Work, a TED series

Get Rid of the “Treat Yourself” Mentality

Many people waste a lot of money by “treating themselves” to things. These treats are often in the form of material goods, be it food, clothing, or some gadget.

Some people waste a lot of money by “treating themselves” to things. (Image Source: Shutterstock)

Confront Your Spending

When your finances aren’t going well, it can be easy to turn a blind eye to what’s going on with your bank account. That, however, is a tendency you need to avoid. Bite the bullet and take a cold, hard look at your accounts. Pull out a highlighter and start underlining all of your needless spending.

Create a Budget

The admonition to create a budget in order to get on top of your finances is nothing new. You’ve no doubt heard it before and will do so again. Hearing and doing, however, are very different things. Now is the time to create a budget and then discipline yourself to stick to it.

Time to create a budget and then discipline yourself (Image Source: Shutterstock)

Hardship Programs

If you are struggling to meet your monthly bills, get in touch with your creditors and let them know. More often than not, they are willing to work with you. It’s when they don’t hear from you that nasty things like penalty interest and debt collection come into the picture.

Cancel Subscriptions

Most of us have several subscriptions that we either aren’t aware of or don’t make much use of. It may be a gym membership, a streaming service, or a magazine subscription. Each one might only be costing you a few dollars monthly. But that can add up to several hundred bucks a year.

Most of us have several subscriptions that don’t make much use of. (Image Sources: Shutterstock)

Lower Interest Rates

If you are paying off a mortgage or a car loan, keep an eye on the interest rates. You can save some serious money by switching to a mortgage lender who is offering a half a percentage point lower rates.

Summary

Overcoming financial hardship starts in the mind. Only when you get your thinking about money straightened out will you be able to implement and stick to the financial habits that will set you on the road to financial security. Make use of our seven hacks to get your finances sorted out.

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