According to PricewaterhouseCoopers (PwC’s 8th annual Employee Financial Wellness Survey PwC US, 2019), when U.S. employees were asked what caused them the most stress, more cited financial matters above any other life stressors combined.
So what is driving this financial stress? It’s not having enough income to cover monthly financial obligations like rent or mortgage payments, utilities, and groceries, but what is really driving stress is debt –high-interest credit card bills along with student loans and medical bills. Another big stress causer is not having any cash reserves. It’s been reported that 40% of Americans would struggle to come up with just $400 for an unexpected expense. If this is a situation you find yourself in – don’t despair, there is a way out – and it starts with acknowledging there is a problem and committing to face your situation head-on.
First, you need to know where you stand – make a list of all expenses and debts, include EVERYTHING! Don’t forget to add in the costs for non-monthly expenses, things that you may pay quarterly or annually, i.e., insurances, taxes, vehicle registrations, etc. Review expenses and see if there is any place you can make cuts. Contrary to popular belief, cable isn’t a necessity, it’s a luxury, if you can’t cut it out completely, can you move to a less expensive plan? Is there money to be saved on your cell phone bill? Do you still have a home phone, why? Are you paying huge monthly car payments? Maybe it’s time to sell that pricey car and get something more affordable (which could save you money on your car insurance as well!). Do you have a spending problem? Is there plenty of money coming in but you don’t know where it goes every month? Keep a spending journal – write down every dollar you spend– coffees, fast food meals, trips to the grocery store and Target runs, it all adds up. You can’t begin to get spending under control until you know where your money is going.
Do you have medical bills? Ignoring bills does not make them go away and medical providers can be very aggressive in pursuing unpaid balances. Don’t allow yourself to be turned over to collection or worse yet sued for unpaid medical bills. If you receive a medical bill, make sure it has been filed with your insurance company, and if they have paid and there is still a balance, and you are unable to pay it in full, call the provider immediately and set up a payment plan. Most providers are more than happy to work with you.
Once you have identified where your money is going, it’s time to create a budget and stick to it. Getting out of debt doesn’t mean you have to stop enjoying life, but it does mean you have to commit to living within your means. Being frugal doesn’t mean you have to deprive yourself of things you enjoy, it means you are prioritizing what’s important. Look for deals, whether you’re replacing appliances, or going out for dinner, save whenever and wherever you can.
Do you need to make more money? If it’s been a while since you’ve had a raise, ask. Research on the internet the best way to ask for a raise – just because you’re broke is not a good reason. When you talk to your supervisor, be prepared to present a compelling case, for example, remind your boss about projects you’ve completed, additional responsibilities you’ve taken on, the money you have saved your company, you get the idea. Or is it time to look for a higher paying job? The biggest raise you will ever get is when you start a new job – again, the internet has a ton of helpful information on how to negotiate for a higher income. Spend the extra time doing the homework – it will pay-off!
If you have a partner, don’t try to go it alone. You must sit down and have a heart to heart conversation because it’s imperative to be on the same page. It’s also important to keep talking about it. Schedule a time once a month to review where you are, celebrate your successes, and set new goals together.
We meet with people every day that have good incomes but expenses and debt that is crushing them. We show them that there is a way out and how to get there. We use a proprietary debt elimination program called “Your Family Bank.” This program allows us to create a personalized plan that will eliminate all debt, including your mortgage, typically within 9 years or less, without spending any more money, or working any harder. There is real comfort in having a plan and knowing that you have a road map to follow.
Most people mistakenly believe that their financial situation can’t get any better because they see their family and friends facing the same money struggles.
Do you want to sleep better at night? Are you tired of living with the stress? Give us a call today and schedule a judgment-free, debt elimination strategy session. Isn’t it worth your time to learn about a solution that can end your financial stress forever?
