Under the weight of home payments, student debt, and increasing costs, it is easy to look at yourself one day and realize that you are in a bad financial situation. It is a hole that seems very hard to get out of, but there are ways to get back on your feet financially and start fresh.
Create a Budget Spreadsheet
You’ve probably heard of this one already, but it cannot be emphasized enough how rewarding some financial transparency can be in your life. You may think you have a hold of what you are spending, but purchases and payments here and there can slip through the cracks of your busy day. Expenses are unpredictable and add up. By creating a spreadsheet, you can see where your money is going and where there is room for improvements that can help save you dollars.
Short Sale Your Home
A short sale is an option many people are not familiar with it. Mortgage payments can pile up while jobs come and go. A short sale is an option you can take when it seems like the only other option available to you is foreclosure. Short sales are when you sell your home for less than the mortgage balance. It is not anything you ever want to do, but it can have less impact on your credit score, and you can recover from it faster than with a foreclosure.
Move Somewhere More Affordable
Much like the last point, this can be an extreme option that many are unwilling to take, but a smaller home or rent payment can add up. Homes are not getting any cheaper, but if it is possible to find a residence that suits your needs but is slightly more affordable, you could be saving money. Do not forget to consider other costs like schools, commutes, and groceries when selecting this option.
Reduce, Reuse, Recycle
This is a phrase you have heard a lot, but it does not just apply to environmental sustainability. If you can reduce and reuse, you can save yourself a financial headache in the future. Avoiding poor spending habits, like purchasing unneeded clothes or food that has empty calories, can make a difference in the long run. Often, there are one or two items that can either be bought secondhand or eliminated.
Any of these ways to get back on your feet financially and start fresh can help a lot. It just takes a little time and effort here and there, and potentially some more complicated choices.
