Overcoming Financial Hardships: 7 Steps Towards a Positive Future

Mon, Apr 14, 2014

Budgeting, Financial Advice

Although there are several challenges that people will have throughout the course of their lives, dealing with a financial hardship can be a uniquely difficult issue to grapple with. Despite the difficulties that result from financial hardships, however, there are several strategies you can implement to ensure that a lack of money does not adversely affect your life. Here are seven steps you should implement to begin building a positive financial future for yourself:

1. Declaring Bankruptcy.

Declaring bankruptcy can be a very effective way for you to overcome financial hardship. This is the case for several reasons, including the fact that declaring bankruptcy can wipe out credit card debt. Additionally, declaring bankruptcy can stop creditor collection and harassment activities. Finally, declaring bankruptcy can eliminate a creditor’s ability to take some (or all) of your property. To learn more about how to declare bankruptcy there are numerous resources online and amongst local attorneys who are willing to help you along the way.

2. Financial Literacy.

Developing financial literacy is one of the most important steps you can take towards building a strong financial future. This is the case for several reasons, including the fact that knowing basic principles regarding money is often the key to building wealth. For example, the term “APR” is an acronym, which stands for Annual Percentage Rate. The term is important to understand because different credit cards have different APRs, and selecting a credit card with a low APR may save you thousands of dollars over the course of your life.

3. Low-Risk Investments.

Although individuals who face financial hardships are oftentimes focused on things they can do to immediately take care of the problem, it is important to recognize that building financial wealth takes time. Moreover, one of the simplest and most effective ways to build financial wealth is through low-risk investments such as CDs and money markets. Since these types of investments can generally be made without necessitating large sums of money, they’re typically a good idea for individuals who want to begin cultivating a positive financial future for themselves.

4. Budgeting.

While there is widespread knowledge about the fact that budgeting can help individuals develop a positive financial future, many people fail to do so. There are many reasons for this oversight, including the fact that some people find the process of devising and implementing a budget difficult or boring. Yet it doesn’t have to be. You can make budgeting fun through the use of colorful charts and graphs, and your ability to save money as well as recognize where each penny is going will help you make better financial decisions as time goes on.

5. Asking For Professional Financial Assistance.

One of the best ways to cultivate a strong financial future is to ask for professional financial assistance. Because many bankers and financial specialists have extensive education and experience in their field, they will often be able to provide you with the type of personal, customized advice that helps you overcome your current financial hardship while simultaneously implementing strategies that will help you build wealth.

6. Get Your Credit Score.

Getting your credit score is yet another effective strategy you can implement in order to begin building a strong financial future. Credit scores are helpful for several reasons, including the fact that they can show you exactly what behaviors you’re engaging in that may be precluding you from having excellent credit. Some of these factors can include things such as forgetting to pay your bills on time and/or not having a credit card that is in good standing.

7. Develop MSI (Multiple Streams of Income).

As many people know, there are many people who have overcome financial hardship and subsequently developed substantive wealth by developing multiple streams of income. Doing so is important for several reasons, including the fact that simply having one job is no guarantee that you will always have a steady stream of income. Since this is the case, think seriously about the value of attaining another stream of income. There are numerous ways you can accomplish this objective, whether through passive income earned through pay-per-click advertising on a blog or writing freelance articles for a content marketing company.

Conclusion

Although dealing with a financial hardship can be very challenging, there are many things you can do to make your money problems a thing of the past and begin cultivating a strong financial future. By implementing some or all of the strategies outlined above, you can start building a great financial future for yourself today. In so doing, you will be able to begin leading a more productive, positive life.

 

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