Actions to take when your finances are a mess

You might find yourself in a situation where your finances are starting to get in a bad shape. Bills are piling up. You have lots of debts such as student loans, a house payment or credit card debt.

Not only do you not have savings in your account or an emergency fund, damn, you don’t even know what to do with the money you do have because of the insecure state your finances are in.

You also have lots of bills that are unpaid and you are at a point where you feel devastated every time you open the bills because you don’t even know if you have money to pay for the bills. Or you can’t even look at the bills, so they are left unopened and kept into a drawer, to be dealt with later.

Truth be told, this is not a good situation to be in.

Firstly, take a deep breath and calm down. As you take this deep breath, assure yourself that you will take major steps towards getting out of this awful situation you find yourself in. Now you might be at the point where you don’t know where to start because there is so much going on.

Below are six actions to take when your finances are a complete mess:

  • Create a Budget

You can’t take control of your spending if you have no idea where your money is going.  The first step toward getting your financial house in order is to create a budget.

Many people feel that budgets are restricting, but actually, that is not really true. Budgets gives you freedom, They give you permission to spend and they give you the ability to tell your money where to go instead of wondering where your money went.

READ ALSO: What to bring to a job interview

  • Monitor Your Credit

Another crucial step toward getting your finances in order is monitoring your credit. Your credit score is important because it determines things like whether or not you’ll be approved for a mortgage, how high your interest rate will be, etc.

With a great credit score, you can get a low interest rate on a mortgage (or other loan).  That could save you thousands of naira over time!

  • Find Practical Ways to Save

A budget only works if you stick to it.  If you’re going over budget in certain categories (groceries, for example) every month, you probably need to find some practical ways to reduce your spending in that area.

If groceries are your biggest budget spoiler, you could try shopping at a cheaper store (like Shoprite), buying fewer prepackaged items, using your freezer to store leftovers, and so on.

  • Give an account of all the Expenses you have

You have to be aware of all the costs of things you need to pay for. You probably have bigger expenses like rent and utilities. But what about smaller expenses?

Did you forget that you have a Netflix account that you are automatically paying for each month? Subscription services are great. But when they are paid automatically, it can be really easy to forget about them over time. And the money can add up.

  • Earn more money if necessary

If you’re sticking to a bare bones budget and you still can’t meet your goals, you’re dealing with an income problem. Try to find ways to make more money.

You could work overtime, ask for a raise, find a better job, get a second (or third) job, side hustle, start a money making blog, rent out a room of your home, or sell items online.

  • Get your spouse or partner on board

Transforming your finances is not going to work if your partner isn’t on board.  If you are married to someone that spends a lot, getting them to be more prudent can be tough.

Appreciate.  Be appreciative of your partner and compliment him or her on what he or she does well. For example, if he decides to change a costly habit or avoid purchasing an expensive item, acknowledge this and be encouraging, this will enable them to be thoughtful whenever they feel like purchasing an expensive item.

You CAN transform your financial situation. It won’t be easy. It will take hard work, persistence and patience. But it will definitely be worth it!

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PS: We provide loans to employees and business owners in Lagos State, Nigeria, from 50,000 – 3 Million Naira. Send a DM.


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