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Understanding financial stress

Effects of financial stress on your health, tip 1: talk to someone, tip 2: take inventory of your finances, tip 3: make a plan—and stick to it, tip 4: create a monthly budget, tip 5: manage your overall stress, coping with financial stress.

Feeling overwhelmed by money worries? Whatever your circumstances, there are ways to get through these tough economic times, ease stress and anxiety, and regain control of your finances.

how to overcome family financial problems

If you’re worried about money, you’re not alone. Many of us, from all over the world and from all walks of life, are having to deal with financial stress and uncertainty at this difficult time. Whether your problems stem from a loss of work, escalating debt, unexpected expenses, or a combination of factors, financial worry is one of the most common stressors in modern life. Even before the global coronavirus pandemic and resulting economic fallout, an American Psychological Association (APA) study found that 72% of Americans feel stressed about money at least some of the time. The recent economic difficulties mean that even more of us are now facing financial struggles and hardship.

Like any source of overwhelming stress, financial problems can take a huge toll on your mental and physical health, your relationships, and your overall quality of life. Feeling beaten down by money worries can adversely impact your sleep, self-esteem, and energy levels. It can leave you feeling angry, ashamed, or fearful, fuel tension and arguments with those closest to you, exacerbate pain and mood swings, and even increase your risk of depression and anxiety. You may resort to unhealthy coping mechanisms, such as drinking, abusing drugs, or gambling to try to escape your worries. In the worst circumstances, financial stress can even prompt suicidal thoughts or actions. But no matter how hopeless your situation seems, there is help available. By tackling your money problems head on, you can find a way through the financial quagmire, ease your stress levels, and regain control of your finances—and your life.

While we all know deep down there are many more important things in life than money, when you’re struggling financially fear and stress can take over your world. It can damage your self-esteem, make you feel flawed, and fill you with a sense of despair. When financial stress becomes overwhelming, your mind, body, and social life can pay a heavy price.

[Read: Stress Symptoms, Signs, and Causes]

Financial stress can lead to:

Insomnia or other sleep difficulties. Nothing will keep you tossing and turning at night more than worrying about unpaid bills or a loss of income.

Weight gain (or loss). Stress can disrupt your appetite, causing you to anxiously overeat or skip meals to save money.

Depression. Living under the cloud of money problems can leave anyone feeling down, hopeless, and struggling to concentrate or make decisions. According to a study at the University of Nottingham in the UK, people who struggle with debt are more than twice as likely to suffer from depression .

Anxiety. Money can be a safety net; without it, you may feel vulnerable and anxious. And all the worrying about unpaid bills or loss of income can trigger anxiety symptoms such as a pounding heartbeat, sweating, shaking, or even panic attacks.

Relationship difficulties. Money is often cited as the most common issue couples argue about. Left unchecked, financial stress can make you angry and irritable, cause a loss of interest in sex, and wear away at the foundations of even the strongest relationships .

Social withdrawal. Financial worries can clip your wings and cause you to withdraw from friends, curtail your social life, and retreat into your shell—which will only make your stress worse.

Physical ailments such as headaches, gastrointestinal problems, diabetes, high blood pressure , and heart disease. In countries without free healthcare, money worries may also cause you to delay or skip seeing a doctor for fear of incurring additional expenses.

Unhealthy coping methods , such as drinking too much , abusing prescription or illegal drugs, gambling, or overeating. Money worries can even lead to self-harm or thoughts of suicide.

If you are feeling suicidal…

Your money problems may seem overwhelming and permanent right now. But with time, things will get better and your outlook will change, especially if you get help. There are many people who want to support you during this difficult time, so please reach out!

Read Are You Feeling Suicidal? , call 1-800-273-TALK in the U.S., or find a helpline in your country at IASP or Suicide.org .

The vicious cycle of poor financial health and poor mental health

A number of studies have demonstrated a cyclical link between financial worries and mental health problems such as depression, anxiety, and substance abuse.

Financial problems adversely impact your mental health. The stress of debt or other financial issues leaves you feeling depressed or anxious.

The decline in your mental health makes it harder to manage money. You may find it harder to concentrate or lack the energy to tackle a mounting pile of bills. Or you may lose income by taking time off work due to anxiety or depression.

These difficulties managing money lead to more financial problems and worsening mental health problems, and so on. You become trapped in a downward spiral of increasing money problems and declining mental health.

No matter how bleak your situation may seem at the moment, there is a way out. These strategies can help you to break the cycle, ease the stress of money problems, and find stability again.

When you’re facing money problems, there’s often a strong temptation to bottle everything up and try to go it alone. Many of us even consider money a taboo subject, one not to be discussed with others. You may feel awkward about disclosing the amount you earn or spend, feel shame about any financial mistakes you’ve made, or embarrassed about not being able to provide for your family. But bottling things up will only make your financial stress worse. In the current economy, where many people are struggling through no fault of their own, you’ll likely find others are far more understanding of your problems.

[Read: Social Support for Stress Relief]

Not only is talking face-to-face with a trusted friend or loved one a proven means of stress relief, but speaking openly about your financial problems can also help you put things in perspective. Keeping money worries to yourself only amplifies them until they seem insurmountable. The simple act of expressing your problems to someone you trust can make them seem far less intimidating.

  • The person you talk to doesn’t have to be able to fix your problems or offer financial help.
  • To ease your burden, they just need to be willing to talk things out without judging or criticizing.
  • Be honest about what you’re going through and the emotions you’re experiencing.
  • Talking over your worries can help you make sense of what you’re facing and your friend or loved one may even be able to come up with solutions that you hadn’t thought of alone.

Getting professional advice

Depending on where you live, there are a number of organizations that offer free counseling on dealing with financial problems, whether it’s managing debt, creating and sticking to a budget, finding work, communicating with creditors, or claiming benefits or financial assistance. (See the “Get more help” section below for links).

Whether or not you have a friend or loved one to talk to for emotional support, getting practical advice from an expert is always a good idea. Reaching out is not a sign of weakness and it doesn’t mean that you’ve somehow failed as a provider, parent, or spouse. It just means that you’re wise enough to recognize your financial situation is causing you stress and needs addressing.

Speak to a Licensed Therapist

BetterHelp is an online therapy service that matches you to licensed, accredited therapists who can help with depression, anxiety, relationships, and more. Take the assessment and get matched with a therapist in as little as 48 hours.

Opening up to your family

Financial problems tend to impact the whole family and enlisting your loved ones’ support can be crucial in turning things around. Even if you take pride in being self-sufficient, keep your family up to date on your financial situation and how they can help you save money.

Let them express their concerns. Your loved ones are probably worried—about both you and the financial stability of your family unit. Listen to their concerns and allow them to offer suggestions on how to resolve the financial problems you’re facing.

Make time for (inexpensive) family fun. Set aside regular time where you can enjoy each other’s company, let off steam, and forget about your financial worries. Walking in the park, playing games, or exercising together doesn’t have to cost money but it can help ease stress and keep the whole family positive.

If you’re struggling to make ends meet, you may think you can ease your stress by leaving bills unopened, avoiding phone calls from creditors, or ignoring bank and credit card statements. But denying the reality of your situation will only make things worse in the long run. The first step to devising a plan to solve your money problems is to detail your income, debt, and spending over the course of at least one month.

A number of websites and smartphone apps can help you keep track of your finances moving forward or you can work backwards by gathering receipts and examining bank and credit card statements. Obviously, some money difficulties are easier to solve than others, but by taking inventory of your finances you’ll have a much clearer idea of where you stand. And as daunting or painful as the process may seem, tracking your finances in detail can also help you start to regain a much-needed sense of control over your situation.

Include every source of income. In addition to any salary, include bonuses, benefits, alimony, child support, or any interest you receive.

Keep track of ALL your spending. When you’re faced with a pile of past-due bills and mounting debt, buying a coffee on the way to work may seem like an irrelevant expense. But seemingly small expenses can mount up over time, so keep track of everything. Understanding exactly how you spend your money is key to budgeting and devising a plan to address your financial problems.

List your debts. Include past-due bills, late fees, and list minimum payments due as well as any money you owe to family or friends.

Identify spending patterns and triggers. Does boredom or a stressful day at work cause you to head to the mall or start online shopping? When the kids are acting out, do you keep them quiet with expensive restaurant or takeout meals, rather than cooking at home ? Once you’re aware of your triggers you can find healthier ways of coping with them than resorting to “retail therapy”.

Look to make small changes. Spending money on things like a morning newspaper, lunchtime sandwich, or break-time cigarettes can add up to a significant monthly outlay. While it may be unreasonable to deny yourself every small pleasure, cutting down on nonessential spending and finding small ways to reduce your daily expenditure can really help to free up extra cash to pay off bills.

Eliminate impulse spending. Ever seen something online or in a shop window that you just had to buy? Impulsive buying can wreck your budget and max out your credit cards. To break the habit, try making a rule that you’ll wait a week before making any new purchase.

Go easy on yourself. As you review your debt and spending habits, remember that anyone can get into financial difficulties, especially at times like this . Don’t use this as an excuse to punish yourself for any perceived financial mistakes. Give yourself a break and focus on the aspects you can control as you look to move forward.

When your financial problems go beyond money

Sometimes, the causes for your financial difficulties may lie elsewhere. For example, money troubles can stem from problem gambling , fraud abuse , or a mental health issue, such as overspending during a bipolar manic episode .

To prevent the same financial problems recurring, it’s imperative you address both the underlying issue and the money troubles it’s created in your life.

Just as financial stress can be caused by a wide range of different money problems, so there are an equally wide range of possible solutions. The plan to address your specific problem could be to live within a tighter budget, lower the interest rate on your credit card debt, curb your online spending, seek government benefits, declare bankruptcy, or to find a new job or additional source of income.

If you’ve taken inventory of your financial situation, eliminated discretionary and impulse spending, and your outgoings still exceed your income, there are essentially three choices open to you: increase your income, lower your spending, or both. How you go about achieving any of those goals will require making a plan and following through on it.

  • Identify your financial problem. Having taken inventory, you should be able to clearly identify the financial problem you’re facing. It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it’s a combination of problems. Make a separate plan for each one.
  • Devise a solution. Brainstorm ideas with your family or a trusted friend, or consult a free financial counseling service. You may decide that talking to credit card companies and requesting a lower interest rate would help solve your problem. Or maybe you need to restructure your debt, eliminate your car payment, downsize your home, or talk to your boss about working overtime.
  • Put your plan into action. Be specific about how you can follow through on the solutions you’ve devised. Perhaps that means cutting up credit cards, networking for a new job , registering at a local food bank, or selling things on eBay to pay off bills, for example.
  • Monitor your progress. As we’ve all experienced recently, events that impact your financial health can happen quickly, so it’s important to regularly review your plan. Are some aspects working better than others? Do changes in interest rates, your monthly expenses, or your hourly wage, for example, mean you should revise your plan?
  • Don’t get derailed by setbacks. We’re all human and no matter how tight your plan, you may stray from your goal or something unexpected could happen to derail you. Don’t beat yourself up, but get back on track as soon as possible.

The more detailed you can make your plan, the less powerless you’ll feel over your financial situation.

Whatever your plan to relieve your financial problems, setting and following a monthly budget can help keep you on track and regain your sense of control.

  • Include everyday expenses in your budget, such as groceries and the cost of traveling to work, as well as monthly rent, mortgage, and utility bills.
  • For items that you pay annually, such as car insurance or property tax, divide them by 12 so you can set aside money each month.
  • If possible, try to factor in unexpected expenses, such as a medical co-pay or prescription charge if you fall sick, or the cost of home or car repairs.
  • Set up automatic payments wherever possible to help ensure bills are paid on time and you avoid late payments and interest rate hikes.
  • Prioritize your spending. If you’re having trouble covering your expenses each month, it can help to prioritize where your money goes first. For example, feeding and housing yourself and your family and keeping the power on are necessities. Paying your credit card isn’t—even if you’re behind on your payments and have debt collection companies harassing you.
  • Keep looking for ways to save money. Most of us can find something in our budget that we can eliminate to help make ends meet. Regularly review your budget and look for ways to trim expenses.
  • Enlist support from your spouse, partner, or kids. Make sure everyone in your household is pulling in the same direction and understands the financial goals you’re working towards.

Resolving financial problems tends to involve small steps that reap rewards over time. In the current economic climate, it’s unlikely your financial difficulties will disappear overnight. But that doesn’t mean you can’t take steps right away to ease your stress levels and find the energy and peace of mind to better deal with challenges in the long-term.

[Read: Stress Management]

Get moving. Even a little regular exercise can help ease stress, boost your mood and energy, and improve your self-esteem. Aim for 30 minutes on most days, broken up into short 10-minute bursts if that’s easier.

Practice a relaxation technique. Take time to relax each day and give your mind a break from the constant worrying. Meditating , breathing exercises, or other relaxation techniques are excellent ways to relieve stress and restore some balance to your life.

Don’t skimp on sleep. Feeling tired will only increase your stress and negative thought patterns. Finding ways to improve your sleep during this difficult time will help both your mind and body.

Boost your self-esteem. Rightly or wrongly, experiencing financial problems can cause you to feel like a failure and impact your self-esteem. But there are plenty of other, more rewarding ways to improve your sense of self-worth. Even when you’re struggling yourself, helping others by volunteering can increase your confidence and ease stress, anger, and anxiety—not to mention aid a worthy cause. Or you could spend time in nature, learn a new skill, or enjoy the company of people who appreciate you for who you are, rather than for your bank balance.

Eat healthy food. A healthy diet rich in fruit, vegetables, and omega-3s can help support your mood and improve your energy and outlook. And you don’t have to spend a fortune; there are ways to eat well on a budget .

Be grateful for the good things in your life. When you’re plagued by money worries and financial uncertainty , it’s easy to focus all your attention on the negatives. While you don’t have to ignore reality and pretend everything’s fine, you can take a moment to appreciate a close relationship, the beauty of a sunset, or the love of a pet, for example. It can give your mind a break from the constant worrying, help boost your mood, and ease your stress.

Find financial resources

Find  U.S. Government Services and Information  including  How to Get Out of Debt ,  Unemployment Help , and  Getting Help with Living Expenses . Or call 1-844-872-4681. (USA gov)

Get help with debt and housing problems from  Citizens Advice , contact a free debt service at  National Debtline  or  Stepchange , or seek free financial advice from the government’s  Money Advice Service .

Find  Government Services , get free  Financial Counselling  or call the  National Debt Helpline  at 1800 007 007.

Find government services and information for  Managing Debt  and  Benefits .

More Information

  • Managing Job Loss and Financial Stress - Helping yourself and your family cope with stress and financial worries following job loss. (University of Hawaii)
  • Managing Debt - Steps you can take to deal with debt. (Federal Trade Commission)
  • Managing money and budgeting - Tips for creating a family budget. (raisingchildren.net.au)
  • Make a Budget - Simple worksheet to help you create a budget. (Federal Trade Commission)
  • Money Stress Weighing on Americans’ Health - Details of the 2015 Stress in America: Paying with Our Health survey from the American Psychological Association. (APA)
  • Trauma- and Stressor-Related Disorders. (2013). In Diagnostic and Statistical Manual of Mental Disorders . American Psychiatric Association. Link
  • Inc, Gallup. “The U.S. Healthcare Cost Crisis.” Gallup.com. Accessed November 16, 2021. Link
  • Anderson, Norman B, Cynthia D Belar, Steven J Breckler, Katherine C Nordal, David W Ballard, Lynn F Bufka, Luana Bossolo, Sophie Bethune, Angel Brownawell, and Katelynn Wiggins. Stress in America: Paying with our Health. “AMERICAN PSYCHOLOGICAL ASSOCIATION,” n.d., 23. Link
  • Ramsey Solutions. “Money, Marriage, and Communication.” Accessed November 16, 2021. Link
  • “At What Costs? Student Loan Debt, Debt Stress, and Racially/Ethnically Diverse College Students’ Perceived Health. – PsycNET.” Accessed November 16, 2021. Link
  • Richardson, Thomas, Peter Elliott, and Ronald Roberts. “The Relationship between Personal Unsecured Debt and Mental and Physical Health: A Systematic Review and Meta-Analysis.” Clinical Psychology Review 33, no. 8 (December 1, 2013): 1148–62. Link
  • Warth, Jacqueline, Marie-Therese Puth, Judith Tillmann, Johannes Porz, Ulrike Zier, Klaus Weckbecker, and Eva Münster. “Over-Indebtedness and Its Association with Sleep and Sleep Medication Use.” BMC Public Health 19, no. 1 (July 17, 2019): 957. Link
  • Saleh, Dalia, Nathalie Camart, Fouad Sbeira, and Lucia Romo. “Can We Learn to Manage Stress? A Randomized Controlled Trial Carried out on University Students.” PLOS ONE 13, no. 9 (September 5, 2018): e0200997. Link
  • “Stress, Social Support, and the Buffering Hypothesis. – PsycNET.” Accessed November 15, 2021. Link
  • Salmon, P. “Effects of Physical Exercise on Anxiety, Depression, and Sensitivity to Stress: A Unifying Theory.” Clinical Psychology Review 21, no. 1 (February 2001): 33–61. Link
  • Toussaint, Loren, Quang Anh Nguyen, Claire Roettger, Kiara Dixon, Martin Offenbächer, Niko Kohls, Jameson Hirsch, and Fuschia Sirois. “Effectiveness of Progressive Muscle Relaxation, Deep Breathing, and Guided Imagery in Promoting Psychological and Physiological States of Relaxation.” Evidence-Based Complementary and Alternative Medicine 2021 (July 3, 2021): e5924040. Link

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Forgiveness

How to heal from family estrangement, to truly heal your inner conflict, it takes wise effort..

Posted February 22, 2024 | Reviewed by Michelle Quirk

  • The Importance of Forgiveness
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  • Before we can act wisely, we need to regulate our nervous system.
  • To improve our relationship, we need to improve how we communicate with our family member.
  • We can use our setting and context to support ourselves.

Family estrangement is more common than you may think. Most of us don’t talk about it because we feel shame or stigma , or dread the oversimplistic and judgmental advice, “Why don’t you just forgive them and move on?”

Yet, research by Karl Pillemer at Cornell University shows that more than a quarter of Americans are estranged from their family members. The most common reasons for estrangement include unmet expectations, boundaries that are repeatedly crossed, mental health problems, in-laws, divorce , and financial differences.

When you are estranged, it can feel like an open wound that never heals. It’s a chronic stressor. It pops up in your head when you least expect it, makes you sad as the holidays approach, and feels like a lead brick on your birthday.

Why would someone cut off ties with their family member? And, what skills do you need to heal internally, whether or not you ever see your family member again?

Resentment, wishing your family member will change, and blaming yourself take a lot of effort. But so do setting boundaries, forgiving, and crafting a healthier relationship. To truly heal your inner conflict, it takes wise effort: the wisdom to know your values, and the effort to take action in that direction.

It’s your personal decision whether or not you want to reunite with your family member, or how much you want to engage with them. Whatever you decide, moving forward in your life is not contingent on your contacting them.

Even if you never decide to contact your family member again, you can heal. Try approaching your problem at the bio-psycho-social-contextual level.

1. Biological: When you are in conflict, your body moves into fight, flight, or freeze. Before you can act wisely, you need to regulate your nervous system . Polyvagal theory suggests that when you simulate the ventral vagus nerve through breathwork, movement, and sound, you tell your body to move from threat into safety and connection.

  • Breath: Try box breathing, soothing rhythm breathing .
  • Movement: Take up walking, yoga, or dance.
  • Sound: Listen to ocean waves, hum to yourself, or try a sound bath.

2. Psychological: Develop your psychological flexibility skills so that you can get space from unhelpful thoughts, stay present, and act from your values in relationship to your family member.

  • Practice acceptance: See reality as it is, let go of trying to change your family member.
  • Have compassion : Start with yourself, then try to take your family member’s perspective; can you see that it’s hard for them, too?
  • Defuse thoughts: Notice your unrealistic expectations and step back from the outdated story you are telling yourself by practicing cognitive defusion.
  • Be open to forgiveness : Ask yourself, what is motivating you to forgive? Why does it matter to you? You can’t force forgiveness, but you can be willing to explore it.

3. Social: To improve your relationship, you are going to need to improve how you communicate with your family member.

  • Set boundaries: Make your limits clear and tell your family member what will happen if they cross them.
  • Be kind: Act in ways that demonstrate how you would like to be treated.
  • Get support: Seek help from a therapist or good friend. Don’t hide in shame or stigma; talk about what you are going through and remember that millions of people are going through something similar.

4. Environmental: Use your setting and context to support you.

  • Create physical space between you and your family member as needed for you to feel safe.
  • Change the environment that you are in with your family. Try a public setting such as a restaurant, set a time limit, and invite people to come with you who support you.
  • Fill your personal environment with things that remind you that you matter, such as pictures of people who love you, objects that remind you of your strengths, or cultural/ancestral artifacts.

how to overcome family financial problems

If you are struggling with estrangement or family conflict, remember that you are not alone. It can change, you can heal, and you can live fully, even with this struggle. Listen to this interview “It’s Your Mother’s Fault, Now What? to hear an inspiring story of how therapist Guilia Preziuso used these skills to reunite with her mom after a decade.

Diana Hill, Ph.D.

Diana Hill, Ph.D., is a clinical psychologist, co-author of ACT Daily Journal , and the host of the podcast Your Life in Process.

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8 Ways to Manage Money Stress

The only way to not stress about money is by facing your financial stress head on.

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Face your finances by sitting down with your bills and a calculator to see just how big of a hole you’re in.

It's easy to get stressed about money. Inflation hasn’t helped, nor has Congress arguing over the debt ceiling, and ever since the first bill was paid, it was likely that money stress was a thing. Meanwhile, all year-round, there are chances for plenty of financial stress. Maybe you're trying to save up for a summer vacation while also thinking about home improvements or back-to-school expenses that you're going to incur. And before long, you'll be thinking about all of the holiday spending you have to do, and after that, there’s taxes to consider.

So if you’re frazzled and wishing you knew how not to stress about money, it's no wonder.

Even though inflation has improved, it's still ever-present in everybody's lives. According to the Consumer Price Index, the price of everything, on average, is 4.9% more expensive than it was a year ago. That’s actually good news. About a year ago, inflation was a lot worse.

Still, lack of money and anxiety tend to go hand in hand. What’s a financially crunched person feeling acute money stress to do?

Get help, suggests Darren Moore, a licensed psychotherapist in Columbus, Georgia. He says that might mean getting financial help or medical help or both.

"A financial advisor can help develop the most effective financial strategy, and a mental health professional can help discuss the impact these changes might have on the couple and family relationship,” Moore says.

Of course, if money is tight, you may feel like the last thing you can do is pay for professional help.

But you have to do something, and you should.

“There are different kinds of money problems, ranging from true poverty to having too much credit card debt to not being able not afford a vacation this year – and everything in between. But no matter what the circumstances, if you are unable to make ends meet, it will wear you down, physically and emotionally, and in every other way,” says Naomi Angoff Chedd, a licensed mental health counselor and director of counselor support services at Counslr, a text-based mental health support platform.

“Money worries often change behavior, almost always in negative ways. It can affect your sleep, your ability to concentrate, your ability to do your job, your relationships with family and friends, and it certainly affects your self-esteem,” Chedd says.

So, in light of May being Mental Health Awareness month, we reached out to some experts to get their thoughts on what you should do if you’d like to take a do-it-yourself approach to financial anxiety and solving money stress.

Run Toward Your Financial Problems, Not Away From Them

Sit down with your bills and a calculator and start trying to see just how big of a financial hole you’re in.

“In my experience, the greatest source of financial stress and anxiety is the fear of the unknown. We're often terrified of digging into our numbers and finding out bad news,” says Chris Janeway, a certified plan fiduciary advisor and the founder and president of Fourth Point Wealth, a financial management firm in Newport Beach, California.

“The reality is, the truth is a liberating thing. More often than not, the fear is worse than the facts of anyone's situation and once we pin down the facts, we can create the steps to progress forward,” he says.

None of this is to say that once you crunch the numbers, you’re going to feel great. If you’re really in a financial bind, being more aware of how bad things are may make you feel even worse. But Janeway is right: No one can get out of a financial hole without understanding how deep it is. If you can figure out just how bad things are, that knowledge can often serve as a pretty good flashlight.

Create a Financial Plan and Share It With Your Household

Revamping your budget – or starting a budget for the first time – is your next step.

You may also need to start a plan to pay down your debt. That might mean getting help from a professional , like going to see a credit counselor. It could mean hiring a financial advisor or working with the IRS to pay back taxes.

Maybe your financial plan is simply that you’re going to look for a new job , one that pays more money.

But assuming your financial plan involves cutting back on expenses, you need to make sure that you’re not the only one in your home fighting what can be a very lonely battle. If you have a spouse, partner or teenagers, looping them into the financial picture could help combat your stress – and keep everyone from blowing up your budget.

“My wife and I, each year, use a date night to sit down with our computers and map out holiday travel, shopping lists and a budget,” Janeway says. “It can seem tedious, and it is, but we leave that date night with a plan that builds trust and reduces an incredible amount of stress as we head into the holidays.”

Use Positive Language When Thinking of Your Financial Situation

Look at the bright side. Kelan Kline, who runs the personal finance blog The Savvy Couple with his wife Brittany, says positive talk is part of financial self-care. He says that it’s very important to not beat yourself up.

He offers up the classic example of not having enough money for the holidays.

“If you don't have as much money as you'd like to spend on gifts, decorations and other holiday purchases, don't get down on yourself,” Kline says. “When trying to cut down on spending, focus on the positive. For example, instead of saying, 'I can't afford that Christmas gift I want to give,' reframe it as, 'I have the opportunity to give a homemade gift from the heart.' This change in language can help you remain relaxed and gain a sense of empowerment.”

While empowering language can’t always turn a cloudy day into a bright one, it’s better to try and reframe a situation positively rather than dwell on the negative. For instance, if you’re paying your rent or mortgage every month and feeding your family, you are succeeding. Maybe not as much as you want, but you’re holding your own.

Remember: You’re Not the Only One Experiencing Financial Problems

If you spend a lot of time on social media, some people you follow may occasionally mention a scary health issue or a frightening moment, like a car accident, but it’s rare that you see posts saying, “Wow, I have $18 in my bank account, and I’m not getting paid for another three days.”

So heed some advice from Joshua Zimmelman, managing director of Westwood Tax & Consulting, a New York City-based virtual accounting firm.

“Remember that you’re not alone,” he says. “Financial anxiety is super common. According to the American Psychological Association, money issues are a major source of stress for most adults.”

He adds that it may not make your own money situation any less stressful, but hopefully you can take comfort in knowing that a lot of other people feel the exact same way.

Zimmelman is correct about that. A survey by FinFit with Salary Finance, which surveyed 2,000 Americans, found that almost 60% of those making under $55,000 a year feel financial stress, but nearly 40% of those making over $200,000 experience it, too.

Make Some Room in the Budget to Splurge

Remember to not beat yourself up too much – or at all – if you occasionally spend money on something you don't need.

If you like to go to the movies, or you refuse to give up a beloved coffee drink or you’re purchasing a toy for your kid just because you want to, and you know the money would be better spent on something else – don’t beat yourself up.

Yes, staying within your budget is important, but so is financial self-care. Nobody’s suggesting that you should be reckless with your money, but keep in mind that being too rigid with how you spend your money can also be somewhat reckless. Even when inflation is high, sometimes we all need to splurge.

Identify the Causes of Any Bad Financial Habits

Some people simply don’t have enough money. They aren’t spending badly; they just don’t have enough to spend. But you may be in the other camp, where you always pick up the check when dining out with friends, or maybe you always have food delivered when you could be picking it up yourself or making it at home.

“Identify the circumstances and triggers that lead to unhealthy spending,” Chedd says. “Do you order things that you want – but may not need – online? Do you buy on impulse when you are in the check-out line?”

If you are mismanaging your money and can figure out where you’re always going wrong, developing better financial habits should give you more funds in the bank and a little less money stress.

Take Care of Yourself

“Healthy eating, sleeping, regular exercise and relaxation will contribute to your ability to remain calm, clear-headed and more able to find solutions to your problems, even your financial problems,” Chedd says.

She suggests identifying activities “that are fun, relaxing and do not cost money – or cost very little. Going for a walk in the woods or along the water can do wonders for your mental, physical and financial health.”

Consider Getting Professional Help

Again, that might be financial help or someone like a mental health counselor. And, yes, professional help is going to cost something, which will add to your stress – but it may not cost you anything or at least less than you think.

"Seeking mental health treatment does not always require a lot of funds,” Moore says. “Depending on where a person works, they may actually have access to free resources including mental health as well as financial advisors through employee assistance programs.”

He adds that about 20% of his clients are referred to by their employers, and their employers generally cover anywhere from two to 10 appointments as part of their employee benefits . So if you’re really feeling anxious over money stress, you could talk to somebody about it for free.

And if that’s not in the cards for you? “There are mental health professionals that offer services that are pro bono or at a reduced cost. Also, there are educational programs that offer services that are pro bono or at a substantially reduced cost,” Moore says.

Finding those services will cost time, of course, but at least not money.

“People might be able to gain access to resources through their medical insurance specifically if their medical insurance coverage includes mental health benefits – which could be completely covered or at a significant reduced cost, such as a copay," Moore says.

And, of course, it must be said that if you’re feeling seriously or chronically depressed or suicidal, you could and should get help very quickly. Chedd says that you can call 988, which is the National Suicide Prevention Lifeline, or text 741741, which would put you in touch with the Crisis Text Line, a global nonprofit that provides a free mental health texting service.

But if you feel like it’s professional financial help you need for your money stress rather than a therapist, there are free places to go for that as well, says Howard Dvorkin, a certified public accountant and chairman of the debt education website, Debt.com.

“There’s no shortage of free assistance,” Dvorkin says. “Your bank or credit union probably offer free online budgeting tools that can help you squeeze every last dime from your income. Nonprofit credit counseling agencies ... offer you a free, in-depth debt analysis over the phone.”

And if you want some monetary guidance for your money stress, Dvorkin says that after experiencing a couple years of historical inflation, getting financial professional help may be your best bet.

“Do-it-yourself solutions are mostly played out,” he says. “There are only so many coupon and gasoline apps you can download.”

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Financial Stress: How to Cope

Elizabeth Scott, PhD is an author, workshop leader, educator, and award-winning blogger on stress management, positive psychology, relationships, and emotional wellbeing.

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Amy Morin, LCSW, is a psychotherapist and international bestselling author. Her books, including "13 Things Mentally Strong People Don't Do," have been translated into more than 40 languages. Her TEDx talk,  "The Secret of Becoming Mentally Strong," is one of the most viewed talks of all time.

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Verywell / Laura Porter

Understanding Financial Stress

Impact on your health, tips for coping, overcoming financial stress.

If you're worried about money, you're not alone. Money is a common source of stress for American adults. In fact, according to the American Psychological Association (APA), 72% of adults report feeling stressed about money, whether it's worrying about paying rent or feeling bogged down by debt. This is pretty significant given financial stress is linked to so many health issues.

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Financial stress is emotional tension that is specifically related to money. Anyone can experience financial stress, but financial stress may occur more often in households with low incomes. Stress can result from not making enough money to meet your needs such as paying rent, paying the bills, and buying groceries.

People with less income might experience additional stress due to their jobs. Their jobs might lack flexibility when it comes to taking time off. They might work in unsafe environments , but they are afraid to leave because they won't be able to support themselves financially while they look for another job.

People with low incomes may not have access to resources to manage their financial stress, either, such as health insurance to receive mental health treatment .

Most people stress about money from time to time. But financial stress can become problematic if it disrupts your everyday life. For instance, you might find you can't focus on or enjoy other parts of your life because your money-related stress is causing you to worry so much.

If your financial stress is severe, you will experience negative effects on your mental health and potentially even your physical health. Financial stress can lead to anxiety , depression , behavioral changes like withdrawing from social activities, or physical symptoms like stomachaches or headaches.

If you experience any side effects related to your financial stress, be sure to talk to a healthcare professional.

Although any stress can take a toll on your health, stress related to financial issues can be especially toxic. Financial stress can lead to:

  • Delayed health care : With less money in the budget, people who are already under financial stress tend to cut corners in areas they shouldn't, like health care. According to Gallup's annual Health and Healthcare poll , 29% of American adults held off seeking medical care in 2018 because of cost. Though this tactic may seem like a good way to keep costs down, delaying medical care can actually lead to worse health outcomes and higher costs, both of which can lead to more stress.
  • Poor mental health : In many instances, the link between mental and financial health is cyclical—poor financial health can lead to poor mental health, which leads to increasingly poor financial health, and so on. For years, studies have shown that people in debt have higher rates of mental health issues like depression and anxiety than those who are debt-free.
  • Poor physical health : Ongoing stress about money has been linked to headaches, stomachaches, migraines, heart disease, diabetes, sleep problems, and more. When we are constantly stressed, our bodies don't have time to recover. Our immune systems are left susceptible to illnesses—this includes colds and viruses. If you already have a chronic medical condition, you may experience flare-ups of your symptoms.
  • Unhealthy coping behaviors : Financial stress can cause you to engage in a variety of unhealthy behaviors, from overeating to alcohol and drug use . According to an APA survey published in 2014, 33% of Americans reported eating unhealthy foods or eating too much to deal with stress.

Learning to cope with financial stress and effectively manage your financial situation can help you feel more in control of your life, reduce your stress, and build a more secure future. Try some of the following tips to get started:

  • Create extra sources of income . If you're feeling stressed about finances, you likely already feel you need more money in your budget. But knowing how to increase your financial holdings without creating significant stress for yourself can be tricky, too. Thankfully, there are several ways to boost your income and relieve your stress.
  • Declutter your budget . Since life is rarely constant, regular budget checkups are essential to improving your financial health. Take control of your finances by setting aside some time to schedule, organize, and declutter all of the money coming in and out of your bank account. The more control you have, the less stress you will feel.
  • Don't forget general stress management . As you work on improving your financial situation, you can reduce stress by practicing stress-reducing techniques and making other changes to create a low-stress lifestyle. Eating a nutritious diet , getting enough sleep every night, and doing some form of physical exercise are linked with reducing stress levels. You can also try mindfulness techniques like deep breathing and yoga to ease any anxiety.
  • Understand the debt cycle . Understanding debt is the first step to getting yourself out of it. One study found that you may be able to pay off your debt more quickly by paying off one account at a time and by starting with your lowest debts first. Do your research and pay attention to interests rates. It's advisable to first pay off the debt that has the largest interest rate to avoid paying higher costs over time.

It might be impossible to fix your financial problems overnight, but you can start planning for success right away. Remember, the stress you experience isn't only a result of your financial situation—you can ease some of your anxiety by taking care of yourself.

Take Stock of Your Finances

Make a list of the financial struggles that most concern you. Take baby steps to tackle each problem one by one so you don't overwhelm yourself.

Write down what you can start doing today or this week that can get you on track to financial stability. Try making a budget plan, only spending on necessities for a week or a month.

You can also try tracking your spending. Keep a daily or weekly list of what you spend money on, and see where you can spend less.

You might seek professional assistance to help you with your finances. For instance, you can research student loan forgiveness programs and income-based repayment programs that may create more manageable payments for your debt.

If you can't pay your bills, try calling your bank, utility company, or credit card company to explain your situation—oftentimes, they can set up a payment plan that works for you.

Reach Out for Support

Try reaching out for support from your family and friends to help reduce stress. You might try attending a support group for people who are struggling with financial stress, too. Remember, you're not alone. You can develop a system of trusted friends and family to help you stay optimistic about your finances.

In some cases, you may even choose to seek professional help from a mental health care provider. All options for support are valid.

Engage in Self-Care

Maintaining a healthy lifestyle is important to help you manage stress. Try to exercise for 30 minutes a day—move your body in whatever way feels good for you. This improves your mental and physical health. Walking is a great way to get a workout in and relieve stress at the same time.

Make time to relax . Though your financial stress can overwhelm you, remember that there are resources to help you manage your stress and your finances. Take time to unwind, meditate , enjoy a fun activity , and connect with others.

Links and Resources

  • Ask a Therapist: How Do I Tackle my Debt and My Anxiety
  • How Your Money Affects Your Mental Health
  • 4 Simple Ways to Relieve Money Stress

Tran AGTT, Mintert JS, Llamas JD, Lam CK. At what costs? Student loan debt, debt stress, and racially/ethnically diverse college students’ perceived health . Cultur Divers Ethnic Minor Psychol . 2018;24(4):459-469. doi:10.1037/cdp0000207

American Psychological Association. Speaking of psychology: The stress of money .

Kraft AD, Quimbo SA, Solon O, Shimkhada R, Florentino J, Peabody JW. The health and cost impact of care delay and the experimental impact of insurance on reducing delays . J Pediatr . 2009;155(2):281-285.e1. doi:10.1016/j.jpeds.2009.02.035

Richardson T, Elliott P, Roberts R. The relationship between personal unsecured debt and mental and physical health: A systematic review and meta-analysis . Clinical Psychology Review. 2013;33(8):1148-1162. doi:10.1016/j.cpr.2013.08.009

Warth J, Puth M-T, Tillmann J, et al. Over-indebtedness and its association with sleep and sleep medication use . BMC Public Health . 2019;19(1):957. doi:10.1186/s12889-019-7231-1

Stress in America: Paying With Our Health . American Psychological Association..

Briguglio M, Vitale JA, Galentino R, et al. Healthy eating, physical activity, and sleep hygiene (HEPAS) as the winning triad for sustaining physical and mental health in patients at risk for or with neuropsychiatric disorders: Considerations for clinical practice .  Neuropsychiatr Dis Treat . 2020;16:55-70. doi:10.2147/NDT.S229206

Zaccaro A, Piarulli A, Laurino M, et al. How breath-control can change your life: A systematic review on psycho-physiological correlates of slow breathing .  Front Hum Neurosci . 2018;12:353. doi:10.3389/fnhum.2018.00353

Harvard Business Review. Research: The best strategy for paying off credit card debt .

American Psychological Association. Dealing with financial stress .

Han A, Kim J, Kim J. A study of leisure walking intensity levels on mental health and health perception of older adults . Gerontology and Geriatric Medicine. 2021. doi:10.1177/2333721421999316

American Psychological Association. Stress in America: Paying with our health .

Richardson T, Elliott P, Roberts R. The relationship between personal unsecured debt and mental and physical health: a systematic review and meta-analysis . Clin Psychol Rev . 2013;33(8):1148-1162. doi:10.1016/j.cpr.2013.08.009

Saad L. Delaying care a healthcare strategy for three in 10 Americans .

By Elizabeth Scott, PhD Elizabeth Scott, PhD is an author, workshop leader, educator, and award-winning blogger on stress management, positive psychology, relationships, and emotional wellbeing.

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For many Americans, financial concerns are ever present, especially given the uncertainties of today’s economy. While worrying doesn’t solve much, having a plan to manage financial challenges can help ease some of the stress. Plus, the monetary benefits of dealing with financial problems—paying off bills, saving more and reducing debt—can help improve your overall outlook. Here are some suggestions for tackling your money stress and taking control of your finances.

Identify top sources of financial stress

If financial anxiety is weighing on you, start by identifying the specific issues keeping you up at night. Whether the problem is credit card debt or upcoming bill payments, pinpointing the source of your stress will help you determine your next move .

Create a monthly budget

A budget is a powerful tool for taking control of—and understanding—your finances. It can help you avoid spending more than you have as well as save for future goals. Once you have a full picture of where your money is going every month, you can look for opportunities to redirect some of it to the areas causing your financial stress.

There are lots of apps and online tools to help you track spending or set up a budget. If you have an account with Bank of America, consider using the Spending & Budgeting tool .

Make the most of your income

When money is tight, you may think you don’t have enough to deal with your financial problems. However, it’s important to make the most of the income you do have. Know that small steps add up. You may not be able to cut any one expense by $500 a month, but you may be able to identify five that you can cut by $100 each.

Article continues below

Build an emergency fund.

Having money set aside for an emergency—such as car repairs, job loss or illness—can go a long way towards relieving financial anxiety. However, building an emergency fund can seem overwhelming, especially one with enough to cover three to six months of expenses. Don’t get hung up on the amount—what’s important is that you’re consistently setting money aside.

Bank of America offers a Savings Calculator to help you see how much time it could take to hit your savings goal.

Be strategic about reducing debt.

Credit card debt is a common source of financial stress. Not only is it expensive—it can also get in the way of your savings goals. The anxiety antidote: a plan to pay off the debt . If you have balances on multiple cards, consider using the snowball method (paying off your debts one-by-one, focusing on the smallest first) or the high-rate method (concentrating on the cards with the highest interest rates first).

Consider outside help

how to overcome family financial problems

If you’re not satisfied with your progress in reducing debt, you may want to seek help from trusted resources, such as the Federal Trade Commission and the National Foundation for Credit Counseling. Or if you want guidance on long-term goals, such as saving for retirement or college, financial advisors can help. Finally, your friends and family may be able to offer support—just make sure to set clear boundaries and expectations to avoid damaging those relationships.

The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America Corporation and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management. ©2024 Bank of America Corporation.

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How to overcome 8 sources of financial problems & difficulties.

How to overcome financial difficulties and problems in Canada.

Financial problems and challenges happen to everyone at some point, and the stress and worry can get to you. However, realizing that there is almost always a way out can help you not feel so depressed. You may be able to find the way out yourself, or you may need someone else's perspective to help you find a solution. Below we’ll show you  how to overcome financial problems and difficulties  and ease your stress. But, one size does not fit all. If your situation is beyond the general help provided here, we’ll also let you know who you can go to for more in-depth help.

1. Identify the Underlying Problem That's Causing the Difficulties

The first step to overcoming financial problems is to identify the underlying issue that’s causing the financial difficulties. Financial problems are usually a symptom of a bigger issue. To come up with solutions that work in the long run, take the time to identify the real source of your financial troubles. Here are some common things to think about: 

Your problem may not be listed above or it may be more complex. However, the concept of identifying a specific problem is important because it is more likely to result in a lasting solution. Just like with a leaky faucet; placing a bucket below is temporary. Fix the tap and the leak will stop. Focus on solving the problem that’s causing your money troubles, rather than dwelling on your stress.

2. Create a Budget - Spend Money in a Way That Helps Solve the Problem 

One of the best weapons for combating financial problems is a budget. A budget is a monthly spending plan for your money. Creating a budget is like turning the lights on to find your way around a dark room. You no longer need to wander in the dark; banging your shins, tripping over the furniture, and stepping on the dog. Instead, with the lights on, you can see what’s going on and prevent problems before they happen. A budget works much the same way; it guides your spending decisions so that you're spending money on what's really important to you. In this case, you'll  spend your money in a way that helps solve your financial problem .

Click here to learn more about creating a budget , or try out our  budget calculator that guides you through the budgeting process , points out common problems, and offers suggestions to improve your budget.

Track Your Expenses to Build a Budget That Works

As you create your budget, it’s important that your expenses aren’t just guesses – they need to reflect reality. You may want to ​ track your expenses  for at least a couple of weeks (a month is best) to objectively see where you are spending your money and how much you’re spending. Although you may think you know where your money is going, when most people tally up all their purchases for a month, they are usually quite surprised to notice that their spending doesn’t always match up with what they thought their priorities were.

3. Determine Financial Priorities to Guide Your Spending Choices

Steps to overcoming financial problems and difficulties.

4. Identify Small Steps You Can Take to Address the Problem & Achieve Your Goals

Look here to get ideas of where find some extra money each month , get the card paid off, and then permanently have $50 extra to use in your budget every month. However, if by the time you reach this goal you’ve learned to get by without this $50, then use it to accelerate the payment of another debt each month, and get all of your debts paid off more quickly. 

Look for Things You Can Do, Even Temporarily, to Improve Your Situation

Here are more ideas or steps you can consider taking to improve your financial situation and alleviate difficulties:

  • As you look through your budget, ask yourself: Do I want this or do I need it? Will spending this money get me closer to my financial goals or further away? Can I live without it?  Learn more about separating needs from wants .
  • Do you use credit cards for impulse purchases? This can contribute to a cycle of ongoing financial difficulty and  add as much as 50% to everything you purchase .  Learn how to reduce or change impulsive spending habits .
  • Ask yourself if you can downsize anything in your budget or switch to a less expensive option. If vehicle costs are straining your budget, can you downsize your vehicle, get rid of one vehicle (the average person spends over $9,000 per year to own and operate a vehicle), take transit (80% cheaper than owning a vehicle), or car pool? If your rent, mortgage, or home upkeep is bleeding you dry, can you downsize to something more affordable, rent out your basement, rent a room in your house, rent out the storage space in your garage, or can you take in a student for some extra income?
  • If debt is causing you financial problems, here are a lot of ways to reduce your debt or here are a dozen of the most effective ways to get out of debt .

Tools, ideas, and steps to help solve financial difficulties.

  • Can you take on a side job or create another source of income with something you know how to do well?
  • Look outside the box, ask yourself tough questions, invite a trusted friend to have a look at your budget and make suggestions, or  sit down with a Credit Counsellor and get their suggestions .
  • Research viable options that will move you towards your goals. A  consolidation loan ,  speaking with a Credit Counsellor , a  Debt Management Program , or some other option may be a possibility.

While doing any of these can be an unappealing thought, don’t just dismiss them because they’ll move you out of your comfort zone. Keep thinking about them and give them some consideration. Come back to these ideas from time to time to see if you can come up with a new angle on decreasing your expenses or increasing your income that might just work for you. Remember, you’re trying to get through a tough a time; you don’t need to do this forever, just to get back on track. If you’re really struggling, an  experienced Credit Counsellor can be a great, free source of suggestions .

5. Develop Your Plan to Overcome Financial Problems for Good

Once you’ve come up with some ideas for how to begin tackling your financial problems and difficulties, you can  put together a realistic plan to accomplish your goals . Some goals will have a timeline of a few months; others will need a longer timeline, like 24 - 36 months. Write your goals down, but also write down where you’re at now in relation to each goal. For example, if one of your goals is to pay off a $4,000 debt, make sure to write down the current debt balance and your future goal of paying this down to $0. You’ll want to include in your plan the amount of money you’re going to pay on this debt every month so that you can pay it off within your desired time frame. For more  help on setting goals, have a look at this . Here are also some  tips on setting financial goals with your spouse .

If you’re really feeling overwhelmed and stressed by your situation, you can also  reach out to a non-profit credit counselling agency for help . They have professionally trained Credit & Debt Counsellors who can review your situation with you, help you put together a realistic budget, and help you come up with a plan to solve your current challenges and get your finances back on track. Their help is usually free and is always confidential.

6. Review How Things are Going

The last step takes place once you are a few months into working on your plan. Every once-in-a-while, take a few minutes to review how things are going. Is your plan working? Are you making progress toward your goals? If not, you’ll need to take a closer look to figure out why not and adjust your plan. Your plan needs to be realistic, or it’s not going to work. It should also contain some things you weren’t doing before you put the plan in place.

If you keep doing what you were doing before, then you’ll continue to get the same result  as before – problems.  You’ve got to do something different to get a different outcome.

As you follow your plan and see improvements in your situation, be open to the possibility of fine-tuning the plan. Once you start making some progress, you may find you’re doing better than you thought, or you may come up with some new insights. Improving your plan so that you accomplish your goals more quickly is good as long as your budget can afford the changes and everyone who relies on your budget is okay with the more aggressive approach.

Preventing Future Financial Challenges

Unexpected financial challenges are bound to arise in the future - in fact, research shows that  6 in 10 Canadians will experience major life events that will challenge their prior financial plans . The key to tackling these challenges is to be flexible. Review your budget occasionally and make necessary changes.  Build up savings so that you can handle unanticipated expenses  without going into debt and putting yourself in a difficult situation.

Overcoming financial problems and difficulties isn’t easy, but by setting some clear priorities for yourself, identifying ways to achieve these goals, and persevering with your plan, you can overcome the challenges and at the same time, put an end to the financial stress.

  • Online Workshop:  How to Resolve Relationship & Marriage Money Problems & Issues
  • How to Protect Yourself from a Financial Emergency
  • Does Being Organized with Your Money Really Matter?

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vivienne replied on Mon, 12/10/2018 - 4:59pm Permalink

how to overcome 8 types of financial problems

sagar pal replied on Tue, 05/28/2019 - 11:43pm Permalink

MyMoneyCoach Team replied on Wed, 05/29/2019 - 8:51am Permalink

Where to get help

Bandela Pratap replied on Thu, 03/05/2020 - 7:10am Permalink

Financial problems

MyMoneyCoach Team replied on Thu, 03/05/2020 - 8:40am Permalink

Finding help

Pushkaraj Sawant replied on Fri, 09/04/2020 - 7:21am Permalink

More More Money Problem

MyMoneyCoach Team replied on Fri, 09/25/2020 - 9:40am Permalink

You should speak with a credit counsellor

Diganta Gohain replied on Sat, 09/05/2020 - 8:43am Permalink

Drastic financial problems

MyMoneyCoach Team replied on Fri, 09/25/2020 - 9:43am Permalink

Two places to look for help

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Nina replied on Sat, 07/08/2023 - 10:42am Permalink

68 years old with little money for the golden years

MyMoneyCoach Team replied on Mon, 07/10/2023 - 2:58pm Permalink

You should speak with a financial planner

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How to deal with money struggles during a financial crisis

Jannese Torres-Rodriguez

Illustration of a woman curled up inside a piggy bank, looking sad. The piggy bank is filled with coins. The piggy bank is set against a light blue backdrop.

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This story comes from Life Kit , NPR's podcast to help make life better — covering everything from exercise to raising kids to making friends. For more, sign up for the newsletter .

Navigating a financial crisis can be overwhelming. How do you decide what expenses should be prioritized? Should you tap into your retirement accounts? What about asking friends or family for financial help? Should you apply for a payday loan?

The first step of creating your emergency plan is understanding your essential needs. "Traditionally, financial experts say, 'Try to pay all your bills, pay them on time.' And we just drill that into people's heads until they lose their job." says personal finance columnist Michelle Singletary."When you don't have enough income, you just pay for what you need, a roof over your head and food on a table."

The cover of Michelle Singletary's book What To Do With Your Money When Crisis Hits: A Survival Guide

Her new book, What To Do With Your Money When Crisis Hits: A Survival Guide , is an emergency field guide for your money. It's intended to help you tackle the issues you'd likely face in the event of a job or income loss, which many people experienced during the ongoing pandemic.

"There are plenty of great personal finance books out there," says Singletary. "But when you're in the middle of a crisis, when you're trying to figure out what to pay, you're not going to grab a book on retirement savings and read it, you know, 200 pages of that."

In the book, Singletary also explains her approach to managing money like she's in a perpetual recession. It's not so much about living in fear but more about being prepared to face financial crises at all times. "I have to always be prepared for the worst and hope for the best," she says.

Life Kit spoke with Singletary about her new book and advice on navigating financial crises. Highlights from our conversation are below, edited for brevity and clarity.

Jannese Torres-Rodriguez: One of the first places that people might turn to for financial support is friends and family. When is the right time to ask for a loan versus a financial gift?

Michelle Singletary: There is never a right time to ask for a loan. If you're in a financial crisis, go to the people who love you and care for you and say, "I've lost my job. I don't know when I can pay you back. I don't want to make a promise that I'm going to break and hurt our relationship." I think you, people will be surprised at the number of folks in their life that would be absolutely willing to help.

Our relationship with money is emotional. How to make the most of your cash

Emotions, Money, And What It Means To Be 'Financially Whole'

What is the best way to respond when someone asks you for financial help?

If you find yourself on this side of the conversation, relieve people of that need to pay you back. Whenever anybody approaches me, I say right away, "this is not a loan." If I write them a check, I write on the memo line in capital letters, NOT A LOAN. Just as a reminder to them that it's OK that you came to me. I had the resources. I wouldn't give you what I can't afford. I release them of that obligation and we never speak about it again. If you're going to help someone, don't keep bringing it up, because if you do, the person feels like they have to pay you back. So just don't say anything.

How to pay off your debt in 7 steps

If You're Drowning In Debt, There's A Way Out

People might be tempted to turn to predatory lending options like payday loans or title loans. Why should we avoid these at all costs?

Payday loans are loans that are given to people based on their next paycheck. Title loans use your vehicle's title as collateral to guarantee the loan. What happens in that situation is say you've got a car that's worth $5,000 and you borrow $500, but you default on that? Now they take your $5,000 for that $500 loan.

Title loans are particularly dangerous for two reasons. One, when you look at the fees and you annualize those fees and turn them into an interest rate, you will see that those fees translate to interest rates of anywhere from 300 percent to 1000 percent. If you were in trouble and someone said, "Hey, I'm going to lend you money at 300 percent," you wouldn't do it. Two, if you're in a jam and you don't have enough money now, you're pledging money from your next paycheck, you're already behind. How are you going to catch up? Studies show that many people end up in a debt cycle with these loans.

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What are your thoughts on taking 401k loans or early withdrawals from your retirement accounts in order to make ends meet?

In the book, I talk about where to go before you reach that point. But if you've tapped everybody that you could or there is nobody to tap, if you have no savings, then that is a source of money that you can tap. It's not ideal. I'd hope and pray that you don't have to do it. But if you do, go ahead and do it, because sometimes you gotta do what you got to do. Now, don't take a lot of the money. Take it little by little as you need it.

Can you walk us through the order of succession when it comes to who you should be talking to, what resources you should be accessing when you're in a financial crisis?

First, go through all of your savings — all of it. That's why it's there. Then, go to friends and family and ask them to help you out. Many churches, synagogues and religious organizations have funds that they set aside for members in need. Tap into state and federal funds, apply for unemployment benefits if necessary, apply for welfare, Medicaid. Use those resources. That's why they're there. If none of that is available, then you can tap your retirement funds. It's going to cost you. But it's there.

Spend savvier, save smarter: 5 tips to stop stress-spending

Spend Savvier, Save Smarter: 5 Tips To Stop Stress-Spending

I think there's a lot of confusion around whether an emergency fund is enough as far as savings go. How many types of savings accounts should people have in order to be able to adequately deal with emergencies?

I like to have my money in different savings "pots." It is a way to organize my savings and also prevent me from tapping money that I shouldn't be tapping. I have something called a "Life happens pot," which is different from the emergency fund. "Life happens" is the pot of money for when life happens, like your car breaks down. That's the pot that you reach for in those situations, because a lot of times, people don't have the emergency funds when they get in a crisis because they've been dipping into it.

People are always asking me, "I've got all this money, but it just is not earning anything." That's not that money's purpose. Don't worry about that. Its job is to be there risk-free. I make sure that I'm investing and getting growth in my other "pots" of money like my retirement account and my children's college fund.

How To Save For Your Kid's College Education

How To Save For Your Kid's College Education

What are common financial scams that we should look out for?

In many communities, particularly minority communities, there are Ponzi and pyramid schemes like the sou-sou, which is a savings technique that many immigrants use where people pool their money and somebody gets the pot of savings every month. Now, people have used that to create these pyramid schemes where, say, you put in five hundred and they promise you four thousand dollars. If they say "I can guarantee you return," you are about to be scammed. Scammers know that people feel like they're behind the curve. They know that people are anxious to grow their money. They know that people are behind in savings. And so they're eager to find a quick fix, a quick way to make money. And they play on that. They play on your trust.

It's A Good Time To Save More. Here's How

It's A Good Time To Save More. Here's How

Do you have any final words of advice?

I don't want you to feel guilty. I want you to feel energized. I want you to feel motivated. Don't just say, "Oh, that's right," and then go back and do the same thing. Take it slow. I'm telling you a whole bunch of stuff that requires a lot of money and discipline. Once you develop that habit, when you start to make money or you get back on track, then it'll become easier, because you have more money at hand. All of us will encounter some sort of financial emergency. And if you're prepared next time around, you can find yourself in a much better situation.

The audio portion of this episode was produced by Clare Marie Schneider. Engineering support was provided by Patrick Murray.

We'd love to hear from you. If you have a good life hack, leave us a voicemail at 202-216-9823, or email us at [email protected]. Your tip could appear in an upcoming episode.

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1. Maximize Your Liquid Savings

2. make a budget.

  • 3. Minimize Your Monthly Bills

4. Closely Manage Your Bills

  • 5. Maximize Non-Cash Assets Value
  • 6. Pay Down Credit Card Debt

7. Get a Better Credit Card Deal

  • 8. Earn Extra Cash

9. Check Your Insurance Coverage

  • 10. Routine Maintenance

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10 Ways to Prepare for a Personal Financial Crisis

Learn how to turn potential financial tragedy into a temporary setback

Amy Fontinelle has more than 15 years of experience covering personal finance, corporate finance and investing.

how to overcome family financial problems

The thought of being hit with a major negative event that could affect your finances, such as a job loss, an illness, a car accident—or a pandemic—can keep anyone awake at night. However, the prospect of something expensive and beyond your control happening becomes less threatening if you’re properly prepared. Here are 10 steps for how to deal with an economic crisis.

Key Takeaways

  • Having a monthly budget is essential to keeping track of your financial health.
  • Scrutinize your bills to see where you might be spending money you don’t have to spend and pay them on time.
  • Make it a priority to pay down your credit card debt and look for cards with low interest rates.
  • Do the proper maintenance on everything from your home to your health to avoid expensive problems down the road.

Cash accounts, such as checking, savings, and money market accounts—as well as certificates of deposit (CDs) and short-term government investments—will help you the most in a crisis. You’ll want to turn to these resources first because their value doesn’t fluctuate with market conditions, unlike stocks, index funds , exchange-traded funds (ETFs) , and other financial instruments in which you might have invested.

This means you can take your money out at any time without incurring a financial loss. Also, unlike retirement accounts, you won’t face early withdrawal penalties or incur tax penalties when you withdraw your money, except for CDs, which usually require you to forfeit some of the interest you’ve earned if you close them early.

Don’t invest in stocks or other higher-risk investments until you have several months’ worth of cash in liquid accounts. How many months’ worth of cash do you need? It depends on your financial obligations and risk tolerance .

If you have a major obligation, such as a mortgage or a child’s ongoing tuition payments, you might want to have more months’ worth of expenses saved up than if you’re single and renting an apartment. A three-month expense cushion is considered a bare minimum, but some folks like to keep six months or even up to two years’ worth of expenses in liquid savings to guard against a long bout of unemployment.

If you don’t know exactly how much money you have coming in and going out each month, you won’t know how much money you need for your emergency fund . And if you aren’t keeping a budget, you also have no idea whether you’re currently living below your means or overextending yourself. A budget is not a parent—it can’t and won’t force you to change your behavior—but it is a useful tool that can help you decide if you’re happy with where your money is going and where you stand financially.

3. Prepare to Minimize Your Monthly Bills

You might not have to do it now, but be ready to start cutting out anything that is not a necessity. If you can get your recurring monthly expenses as low as they can be, you’ll have less difficulty paying your bills when money is tight.

Start by looking at your budget to see where you might currently be spending more money than necessary. For example, are you paying a monthly fee for your checking account? Explore how to switch to a bank that offers free checking . Are you paying $40 a month for a landline you rarely use? Learn how you might cancel it or switch to a lower rate emergency-only plan. You might find ways you can start cutting your costs now just to save money.

Maybe you're in the habit of letting the heater or air conditioner run when you’re not home or leaving lights on in rooms you aren’t using. You may be able to trim your utility bills. Now might also be a good time to shop around for lower insurance rates and find out if you can cancel certain types of insurance, such as car insurance, in the event of an emergency. Some insurance companies might give you an extension, so look for the steps involved and be prepared.

There’s no reason to waste money on late fees or finance charges, yet families do it all the time. During a job loss crisis, you should be extra studious in this area. Simply being organized can save you a lot of money when it comes to your monthly bills. One late credit card payment per month could set you back $300 over the course of a year. It could even get your card canceled at a time when you might need it as a last resort.

Set a date twice a month to review all your accounts, so you don’t miss any due dates. Schedule electronic payments or mail checks so that your payment arrives several days before it’s due. This way, if a delay occurs, your payment will probably still arrive on time. If you’re having trouble keeping track of all your accounts, start compiling a list. When your list is complete, you can use it to make sure you’re on top of all your accounts and to see if there are any you can combine or close.

Don’t neglect your non-cash assets, such as frequent flier miles, credit card rewards points, and gift cards.

5. Take Stock of Your Non-Cash Assets and Maximize Their Value

Being prepared might include identifying all of your options. Do you have frequent flyer miles you can use if you need to travel? Do you have extra food in your house that you can plan meals around to lower your grocery bills? Do you have any gift cards you can put toward entertainment or sell for cash? Do you have rewards from a credit card that you can convert to gift cards? All these assets can help you lower your monthly expenses, but only if you know what you have and use it wisely. Knowing what you have can also prevent you from buying things you don’t need.

6. Pay Down Your Credit Card Debt

If you have credit card debt, the interest charges you’re paying every month probably take up a significant portion of your monthly budget. If you make it a point to pay down your credit card debt, you will reduce your monthly financial obligations and put yourself in a position to start building a better nest egg. Getting rid of interest payments frees you to put your money toward more important things.

If you’re currently carrying a balance, it could really help you to transfer that balance to another card with a lower rate . Paying less interest means that you can pay off your total debt faster and/or gain some breathing room in your monthly budget. Just make sure that what you save from the lower interest rate is greater than the balance transfer fee. If you’re transferring your balance to a new card with a low introductory annual percentage rate (APR) , aim to pay off your balance during the introductory period, before your rate goes up.

It's also worth asking if your current credit card company will lower your monthly interest rate. Sometimes companies will do this to keep you as a customer; it's cheaper for them to keep an existing customer than it is to recruit a new one.

There are always ways for you to earn extra money, whether it’s selling unneeded possessions, freelancing in your off hours, or even getting a second job.

8. Look for Ways to Earn Extra Cash

Everyone has something they can do to earn extra money , whether it’s selling possessions you no longer use (either online or in a garage sale), babysitting, chasing credit card and bank account opening bonuses, freelancing, or getting a second job. The money you earn from these activities may seem insignificant compared to what you earn at your primary job, but even small amounts can add up to something meaningful over time. Besides, many of these activities have side benefits: You might end up with a less cluttered house or discover that you enjoy your side job enough to make it your career.

In step three, we recommended shopping around for lower insurance rates. If you’re carrying too much insurance—or could be getting the same coverage from another provider for a better price—these are obvious changes you can make to lower your monthly bills.

That being said, having excellent insurance coverage can prevent one crisis from piling on top of another. It’s also worth making sure that you have the coverage you really need and not just a bare minimum. This applies to policies you already have, as well as to policies you may need to purchase. A disability insurance policy can be indispensable if you sustain a significant illness or an injury that prevents you from working, and an umbrella policy can provide coverage where your other policies fall short.

10. Keep Up With Routine Maintenance

If you keep the components of your car, home, and physical health in top condition, you can catch problems while they’re small and avoid expensive repairs and medical bills later. It’s cheaper to have a cavity filled than to get a root canal, easier to replace a couple of pieces of wood than to have your house tented for termites, and better to eat healthy and exercise than end up needing expensive treatments for diabetes or heart disease. You might think you don’t have the time or money to deal with these things on a regular basis, but they can create much larger disruptions of your time and finances if you ignore them.

Life is unpredictable, but if there’s anything you can do to stave off disaster, it’s to be prepared and careful. With the right preparation, you can turn a potential financial tragedy into a merely temporary setback.

  • Guide to Emergency-Proofing Your Finances 1 of 23
  • 10 Ways to Prepare for a Personal Financial Crisis 2 of 23
  • Stock Market Down? One Thing Never to Do 3 of 23
  • 5 Rules to Improve Your Financial Health 4 of 23
  • How to Reach Financial Freedom: 12 Habits to Get You There 5 of 23
  • Emergency Fund 6 of 23
  • How to Build an Emergency Fund 7 of 23
  • How to Invest Your Emergency Fund for Liquidity 8 of 23
  • 7 Smart Ways to Raise Cash Fast 9 of 23
  • How Much Cash Should I Keep in the Bank? 10 of 23
  • 7 Places to Keep Your Money 11 of 23
  • What Are the Withdrawal Limits for Savings Accounts? 12 of 23
  • Safe Deposit Boxes: Store This, Not That 13 of 23
  • The Financial Effects of a Natural Disaster 14 of 23
  • Disaster Loss: What It Is, How It Works, Calculation 15 of 23
  • If Your Kid Is 18, You Need These Documents 16 of 23
  • Power of Attorney: When You Need One 17 of 23
  • Financial vs. Medical Power of Attorney: What’s the Difference? 18 of 23
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  • What's the Average Cost of Making a Will? 20 of 23
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A family struggling with their budget at the kitchen table.

by Maria Pippidis, May 2020

A drop in income is a scary and unsettling situation for both adults and children. It is important to talk through the situation with family members as quickly as possible–even though it may be hard to do. Adults can quickly feel overwhelmed by the added stress and sense of reduced financial security. It is important to remember that children sense the tension in the family and may feel less secure, but don't know what to do about it.

Parents may be less engaged with their children and more likely to become upset or angry over little things, due to higher levels of stress. Keeping the lines of communication open during times like these can help everyone feel more connected. Family communication can also help older children and parents find ways to manage the family finances. Even young children can be taught about wants and needs and how family financial decisions are made.

You may wonder how you will afford to buy food and pay your rent or mortgage... -

Some tips for family money meetings:  

  • The most important thing to remember is to "leave the blame at the door."
  • Recognize and respect each other's different attitudes toward money and approach discussions in an organized way. Work to find common ground so you can all work in the same direction.
  • Make sure it is a good time for each of you to talk. If one of you has had a bad day or received difficult news, you may want to reschedule the discussion.
  • Set ground rules for the discussion. Make sure you both have an opportunity to be heard and listen to what your partner is saying. Avoid accusations and blame.
  • Set and prioritize your goals together and stick to the plan unless something significant occurs and you need to alter it.
  • Set aside time each month for a money meeting. Regular meetings will become easier to do and keep you on track.

You may need to meet more frequently during times of financial stress. Try to set goals that are obtainable and leave everyone something that will keep their spirits up. When planning about cutting back on spending, find alternatives for when you have to say, "We can't do that anymore." For example, if you can't afford to go to the movie theater or need to cancel some online viewing subscriptions, then plan to go to the library and borrow them or start a movie-lending group with friends. Finding free and inexpensive alternatives can keep family members from feeling the brunt of financial hardship.

Some financial decisions are harder to make. For example, you may wonder how you will afford to buy food and pay your rent or mortgage. What will happen if you can't pay your credit card bills right now?

You need to take action right away if you are asking these questions. Find out about any available financial supports. You can help keep your family healthy and happy by finding supports like energy assistance, health insurance, and other resources.

If you are worried about overwhelming debt, or unable to make mortgage payments, call your lenders to work on a payment plan before you get behind on payments. Be realistic about what you can afford. This means that you have done the math and know that you can meet your basic needs while doing the best you can to meet your creditors' financial obligations. Meeting with a reputable financial counselor might be helpful.

See www.debtadvice.org for National Foundation for Credit Counseling-accredited agencies. In Delaware, the  $tand By Me program offers financial coaching services.

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How to Solve Financial Problems by Changing Your Attitude about Money

  • Whitney Hopler Crosswalk.com Contributing Writer
  • Updated Sep 19, 2019

How to Solve Financial Problems by Changing Your Attitude about Money

Editor's Note: The following is a report on the practical applications of Carrie Rocha's new book, Pocket Your Dollars: 5 Attitude Changes that will Help You Pay Down Debt, Avoid Financial Stress, and Keep More of What You Make (Bethany House, 2013).

If you’re struggling to manage your money well but can’t seem to change unhealthy behaviors such as spending too much and saving too little, there’s hope. You can solve your financial problems in 11 steps by looking beyond your behaviors to the attitudes behind them – and then relying on God’s help to change those attitudes to ones that reflect His wisdom.

Here are 11 steps for how you can solve your financial problems by changing your attitudes about money:

2: Overcome the “I deserve a treat” attitude. This attitude drives you to make impulsive purchases to reward yourself for hard work or give yourself some other emotional gratification, such as comfort or stress relief. Realize, though, that habitually buying things on impulse wastes lots of money as your small expenditures add up to large amounts. The money that you currently spend impulsively to splurge on little treats (from candy bars or cups of coffee to new outfits or gadgets) can help you save up toward more meaningful purchases that would add much more value to your life. Spend some time reflecting on what you’d most like to spend your money on, and why. Clarify the dreams and goals you’d like to pursue once you’ve saved enough money for them – and then remind yourself of those dreams and goals, to motivate yourself to refrain from impulsive spending and allocate the money you would have previously spent frivolously to savings instead.

5: Overcome the “I can’t afford it” attitude . If you feel guilt or shame when spending money, despite the fact that you actually can afford what you’re purchasing, you may be suffering from this attitude of excessive deprivation. Recognize that it’s okay to indulge in purchasing expensive items and experiences that are meaningful to you and won’t put you in debt. If your frugality is negatively impacting your life or your relationships with other people, ask God to help you become more generous. Then start a habit of giving more to others through your church and charities, and buying some things you’d especially enjoy for yourself.

6: Change the self-talk in your mind . Honestly examine the thoughts that run through your mind about money and challenge them regularly to discern whether or not they reflect biblical truth. If not, intentionally replace inaccurate, unhelpful thoughts about money with true and healthy thoughts.

7: Stand up to pressure to make unhealthy financial choices. Pray for the willpower you need to resist spending money irresponsibly again, and whenever you’re tempted, ask God to help you in that moment. Develop strategies to help you successfully manage your money well, such as closing every credit card except for one and paying mostly cash for your purchases. Remain committed to lasting change.

8: Create a spending plan. Plan how you intend to spend, give, and invest the money you have. This is similar to a budget, but rather than focusing on your financial constraints, a spending plan focuses on your financial goals. Include your predictable monthly expenses (such as groceries and utility bills), your predictable non-routine expenses (such as vacations and new clothes), and your unpredictable expenses (emergencies).

9: Pay off debt . Work diligently to pay off all of your debts by focusing on one debt at a time. List your debts in order of balances owed (regardless of interest rates), and then work your way through the list, paying off the lowest balance loans first and moving on – one by one – to the highest balance debts until they’re all paid in full.

10: Reduce your expenses going forward . Be creative about reducing your expenses as much as possible, from using coupons to buying different items during the seasons they’re on sale.

Start a financial journal today for how you will begin taking these steps and keep a log of how you do! Don't beat yourself up when you fail, get up and try again. Financial wisdom takes time to practice and learn.

Adapted from Pocket Your Dollars: 5 Attitude Changes that will Help You Pay Down Debt, Avoid Financial Stress, and Keep More of What You Make , by Carrie Rocha, copyright 2013 by Pocket Your Dollars. Published by Bethany House Publishers, a division of Baker Publishing Group, Minneapolis, Mn., www.bethanyhouse.com .  

Carrie Rocha owns and operates PocketYourDollars.com , one of the most popular couponing and personal finance sites on the web. She shares money-saving ideas she learned as her family eliminated $50,000 in debt in two-and-a-half years. A sought-after media personality, Carrie has been featured on Wall Street Journal Radio, Glamour, Yahoo! Finance, CNNMoney.com, FoxBusiness.com, and many other magazines and websites. Carrie lives with her husband and two daughters in Maple Grove, Minnesota. Learn more at www.pocketyourdollars.com .

Whitney Hopler is a freelance writer and editor who serves as both a Crosswalk.com contributing writer and the editor of About.com’s site on angels and miracles . Contact Whitney at: [email protected] to send in a true story of an angelic encounter or a miraculous experience like an answered prayer .

Photo Credit: ©GettyImages/primipil 

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Money Basics  - Financial Problem Solving Strategies

Money basics  -, financial problem solving strategies, money basics financial problem solving strategies.

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Money Basics: Financial Problem Solving Strategies

Lesson 2: financial problem solving strategies.

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Financial problem-solving strategies

person carrying heavy weight with dollar sign

Have you ever experienced a financial problem? Do you feel like finances are holding you back from reaching your goals? This lesson will give a brief overview of the general problem-solving process and how to apply it to the most common financial problems.

The problem-solving process

First, let's take a look at a general problem-solving process that you can apply to any situation, not just a financial one.

  • Identify the problem . The first step in solving a problem is to identify it. What exactly do you need to overcome?
  • Make a plan. What are the steps you need to take in order to overcome the problem?
  • Implement the plan . This step actually puts the plan you created in place. While it sounds fairly straightforward, this is usually the most difficult step.
  • Evaluate the plan . Although this is listed last, this step might actually occur simultaneously with implementing the plan. Things happen and circumstances change, so you may need to re-evaluate your plan as it is happening.

Identifying the problem

credit report with low credit score of 360

The first step in the problem-solving process is to get to the root of the problem and understand what you need to overcome. Here is a list of the most common financial problems people may face:

  • Lack of income/job loss
  • Unexpected expenses
  • Too much debt
  • Need for financial independence
  • Overspending or lack of budget
  • Lack of savings

When thinking about these common problems, each one falls into one of three areas: You need more money, you need to reduce your debt, or you need to change how you spend.

Making a plan

After identifying the problem you need to overcome, it's time to make a plan. Not sure where to start? No worries! We have you covered with some tips and places to begin.

Problem 1: You need more money . Whether you've lost your job, met an unexpected expense, or are working on becoming more financially independent, a form of income is necessary.

If you are a looking for additional work or maybe just a better-paying job, take some time to update your resume and cover letter. Make sure they are neat, up to date with your most current information, and free of spelling and grammar errors.

Be wary of any advertisements or jobs that offer fast, easy money. A lot of quick-cash methods come with unintended consequences. More often than not, if something sounds too good to be true, it probably is.

Problem 2: You need to reduce your debt . With high interest rates or the need to live paycheck to paycheck, high debt can be debilitating. Sometimes it feels like climbing a neverending mountain with an invisible peak. However, by prioritizing and negotiating your debt, you can make it more manageable.

Try listing all of your debt and the interest rates associated with each. Focus on paying off the ones with the highest interest rates first. If you're having trouble making payments, call the loan company and see if it can offer any solutions for you. The company may be able to lower your interest rate or offer a temporary forbearance to help you get back on your feet. If you need more help tackling your debt, you may want to contact a professional debt counselor like Consolidated Credit.

Problem 3: You need to change how you spend . Going from financial problems to a healthy financial status often requires organization and a shift in thinking. Avoiding overspending, building your savings, and gaining financial independence can often be accomplished with good spending habits.

The first thing you may want to try is creating a budget. There are many templates and resources available to help you create one. Sticking to one can be challenging, but simply having a budget laid out can help you see where you need to start spending less.

In addition to your budget, create a savings plan. Start out small. Even stowing away an extra dollar or two here and there can make a big difference. Also, try placing your savings in a place you cannot easily access. For example, create a savings account at a bank you don't usually use. The more difficult it is to access your money, the less likely you are to spend it.

Implementing the plan

person on ladder climbing to metaphorical financial security

Although the explanation of this part is the simplest, this is often the most difficult part to actually execute. It requires self-discipline and perseverance. The most important part of this step is to know that if your plan doesn't work or if you have a difficult time sticking to it, all is not lost. If it happens, move on to the next step, evaluate your plan, then repeat the process.

Overcoming financial obstacles can require changing your lifestyle, and this does not happen overnight. However, just having a plan itself can help to give you confidence and reassurance that you can eventually overcome whatever is in your way.

Evaluating your plan

As you implement your plan, you'll need to continually evaluate it. Maybe something happens and your original plan needs to change. Perhaps you've learned more along the way and realize that your original plan was incomplete. Or maybe your first plan went as planned and was a success. No matter the circumstances, it is always a good idea to look back and re-evaluate. Try answering these questions:

  • Was your problem solved? Did a new problem arise?
  • What went right?
  • What went wrong?
  • What circumstances changed?
  • Was there anything you didn't account for?
  • What was easy about implementing your plan?
  • What was difficult about implementing your plan?

Financial obstacles can often seem debilitating and impossible to overcome. They often create a significant source of financial anxiety . We hope this lesson will help give you the confidence to take on your problem one step at a time so you can conquer your anxiety and move forward.

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THE Christian Personal Finance Blog

How to Fix the 9 Most Common Financial Problems Your Family is Facing

By Jason Cabler on August 20, 2020 1

How to Fix the 9 Most Common Financial Problems Your Family is Facing

Dealing with financial problems is never fun. But unfortunately, most all of us have to do it at one time or another during our lives. Fortunately, when your family is in a financial bind, there is always a way to resolve the problem. In today’s article I’ll cover 9 of the most common financial problems families face, along with some practical advice for overcoming your financial problems so you can win with money for the rest of your life.

9 of the Most Common Financial Problems

Here’s a quick list of the most common financial issues families face on a daily basis:

  • Not enough income
  • Financial disorganization

Lack of savings

  • Too much debt
  • Huge health care costs
  • Not on the same page as your spouse
  • Not knowing how to invest
  • Overall financial stress

Not Enough Income

One of the most common financial problems my readers tell me they experience is a lack of income. It’s an issue a lot of people have, but they’re not sure how they ended up that way, or how to address it.

Make a Plan for Your Career

When it comes to dealing with a low income, I believe many times it’s the result of lack of a plan. I talk to so many people who struggle with their income, but they have no plan for their career. They just continue working, hoping to find the next job that pays two more dollars an hour.

That’s not a plan.

Making a real career plan means looking out 5, 10, 20 years and envisioning where you want to be career-wise at those times. Once you have a clear vision, write it on paper and start writing down what steps it will take to get you to each point in your vision for the future.

You may not be able to formulate the perfect career plan in the beginning. But the point is to start taking the small steps necessary to get you to the next level financially and in your career. As time goes on, the next steps will become clearer, and you will continue moving forward.

How to Make More Money- 14 Ways to Be Awesome at Work

Get a Side Hustle

Another great way to increase your income is to get a good side hustle. The great thing about a side hustle is that it can really take the pressure off financially.

You can use the extra side gig money for anything you need to. For example:

  • Paying off debt
  • Family enjoyment
  • Reinvesting into your side hustle to turn it into a full-time business

how to overcome family financial problems

Side hustles are a great way to ease the financial stress in your life. But one thing a side hustle won’t do is overcome financial disorganization. If you are not managing your finances well, it doesn’t matter how much you make, you still won’t get ahead financially.

Here are a few of my most popular posts about side hustles:

12 Easy, High Paying Side Hustles for Single Moms

How to Work from Home with Amazon- 5 Profitable Ways to Do it

19 Profitable Home-Based Business Ideas to Successfully Leave Your Office Job

You Are Financially Disorganized

As I mentioned above, financial disorganization always causes you to struggle with money problems, even if you have a high income . I believe learning to manage your money better is the number one thing you must do if you want to overcome your family’s financial problems.

Just knowing your bank account balance at any given time does not mean your financially organized. Knowing how much your bills are every month isn’t either. This is not the best way to manage your money .

When it comes down to it, the best way to organize your finances is to do a monthly written plan that tells your money where to go, instead of wondering where your money went at the end of the month.

How to Get Your Finances Organized

So, how do you get your finances organized? Here are some examples of what you’ll need to do:

  • Evaluate your expenses- do you spend more than you make?
  • Know how much debt you have.
  • Make a plan for paying off debt.
  • Build an emergency fund.
  • Start doing a written, forward looking monthly budget.
  • Learn to pay yourself first.
  • Ditch the credit cards. Start using only cash, checks, and debit cards.

If getting your finances organized seems too overwhelming, there is help! I’ve put together a highly rated course that takes you through every single step you need to get on the right track.

It’s full of detailed written lessons, videos, and printable worksheets that will take you through the process, get your money totally organized, and eventually make you feel like a financial genius! You can check it out at the link below.

The Divine Art of Money- 21 Days to Manage Your Money Like a Pro!

Don't want to take a course? I also have a complete suite of fillable forms and organizers available from my online course to help you get organized. They're available in my Etsy Store at the link below, and best of all, they are dirt cheap!

The Divine Art of Money- printables for your financial success

how to overcome family financial problems

So many people are living paycheck to paycheck, that few save as much money as they would like. Unfortunately, lack of savings takes a toll on your finances now and for the future, not allowing you to build the financial freedom you want for you and your family.

For some, not saving money is related to having a low income. But for a huge swath of the population, it’s due to a lack of good money management habits.

Saving for an Emergency Fund

To protect yourself from getting into debt when you have an emergency expense, it’s extremely important that you build an emergency fund as your first line of defense.

A small $1,000 emergency fund is sufficient once you pay down your consumer debt. Then you can quickly build an emergency fund of 3-6 months of expenses to insure yourself against a major financial hit, such as a job loss or a worldwide pandemic .

Saving for Retirement

Retirement saving is crucial if you ever want to have financial freedom in your future. Even if you have to sacrifice, put 15% of your paycheck into retirement accounts. Have it automatically deducted so you don’t have to do it yourself every month and be tempted to spend it somewhere else.

Saving for a Home

If your goal is to own a home, saving up for a down payment can be hard. But if you get your finances organized like a talked about above, you can be a homeowner in no time!

Your best bet is to save up at least a 20% down payment so you can gain instant equity and avoid private mortgage insurance, which is a huge waste of money.

How Can You Save More Money?

I realize all the goals above seem insurmountable to some people. But if you make the commitment to changing how you approach your finances, you’ll be totally surprised at how much money you can save!

Of course, a side gig and a good plan to better your career can be a huge help as well.

You Have Too Much Debt

Consumer debt is the #1 killer of family finances! We’ve become so addicted to the notion that credit card bills and car payments are just a part of life , that many don’t believe there is an alternative.

I can tell you from personal experience that getting out of debt is absolutely the best thing you can do to rid yourself of financial problems forever.

When you fix the financial problems associated with consumer debt, you have the freedom to make better financial choices for your family, you have less financial stress in your life, and you can build incredible, life-changing wealth!

The Ultimate Guide to Getting Out of Debt, Even if You Have No Money

Modest Money List of Top Personal Finance Blogs

You Lost Your Job

Losing your job can be a crushing blow- not only to your ego, but for your finances as well. Even if losing your job isn’t directly your fault, it can be difficult to recover if you’re not prepared.

The first thing you should do when you lose your job is to take a deep breath. Let your emotions take a back seat for a minute, and evaluate where you stand, as that will help determine your path forward. Some important questions to ask yourself when you lose your job:

  • Will I get a severance package?
  • Do I have an emergency fund ready and waiting for a time like this?
  • Which contacts can I call that can help me find a new job?
  • Do I need to learn any new skills to make myself more employable?
  • What can I do right now to start the process of finding my next job?

Overcoming Job Loss

Overcoming this common financial issue sometimes takes a while. You should be prepared to hit the ground running, especially if you don’t have a severance package or emergency fund in place.

The best solution is to get active. No sulking or hunkering down in a semi-depressed state for days on end. Here are some action steps you can take when you lose your job:

  • Lean in to contacting people who can help find your next job.
  • While you have time off, learn a new skill to help increase your value to your next employer.
  • Review and update your social media profiles.
  • Review and update your resume’.
  • Get a part-time work to make ends meet while you search for a new job.
  • Don’t rely on credit cards, and never take money out of retirement accounts while unemployed.

Remember, losing your job may be a blessing in disguise. It may not feel like it at first, but when you take quick action, you just might find your dream job!

13 Essential Things You Must Do When You Lose Your Job

Huge Health Care Costs

High medical bills are one of the most common financial problems people face. Whether it’s due to a hospital stay or high insurance premiums, it’s difficult to deal with the financial problems associated with health care.

The Cost of Health Insurance

Health insurance premiums take a huge chunk of your money every month, especially if your employer isn’t covering part of the bill. It’s not always easy to reduce these costs, but there are some things you can do to decrease your monthly health insurance costs:

  • Try the Affordable Care Act Marketplace to find a more affordable plan.
  • Increase your deductible, which will decrease your monthly premiums.
  • Use a more affordable Christian healthcare ministry instead of traditional insurance. My favorite is Medishare.

Medical Bills

Another common financial issue is high medical bills. Whether you have a chronic illness, had an accident, or had unexpected surgery, the costs add up fast.

Fortunately, there are ways to minimize these bills if you know what to do. In some cases, you can end up paying pennies on the dollar! I wrote an article about how to pay off your medical debt that shows you what you need to know.

How to Pay off a Ton of Medical Debt- What You Should (and Shouldn’t) Do

Not on the Same Page with Your Spouse

Studies show that money issues are one of the top causes of divorce in the U.S. It has little to do with income level, and everything to do with how the couple manages money.

Unfortunately, most individuals don’t view or use money the same way as their spouse, and this causes friction. When they don’t make the effort to learn how to work together financially, it’s easy to let finances become a wedge in the relationship. This can lead to an expensive divorce.

But, even you don’t see eye-to-eye financially with your spouse, you can still find a way to work together without causing friction in your relationship. I can honestly say that when my wife Angie and I finally learned to communicate effectively and got on the same page with our money, it changed our marriage in a huge way. We literally have not had a money fight in over a dozen years!

My latest online course will help you achieve the same results. It will teach you to:

  • Understand money better.
  • Get control of how money flows in and out of your life.
  • Develop the right habits to succeed financially.
  • Get on the same page with your spouse about finances.
  • Fix your money problems for good.

Not Knowing How to Invest

Another common financial problem so many contend with is not knowing how to invest money wisely. In discussions with many of my readers, I’ve discovered that most tend to put it off, if they ever invest at all.

They feel like they don’t understand investing, and lack the confidence to do it. They are afraid to put money into investments they don’t understand, and potentially lose their hard-earned money.

Fortunately, you don’t have to be a Wall Street genius to invest your money wisely. Yes, you should be educated about investing. But when it comes down to it, when you understand a few basics about investing money, you will easily overcome this common financial issue.

Here’s an example of some of the basics of investing you need to know:

  • Don’t use debt to invest.
  • Don’t take on too much risk.
  • Be conservative, but not too conservative.
  • Spread your investments among several different asset classes.
  • Keep your emotions in check- don’t jump in and out of investments when they go up or down.
  • Avoid individual stocks- stick with mutual funds, ETF’s, and index funds.
  • Avoid taxes and fees like the plague.
  • Hire a financial advisor if you need one.

Below you’ll find some of my top posts on investing:

How to Invest Your Money Wisely- The Basics

The Novice Investor: What You Need to Know to Succeed

12 Biblical Investing Principles to Build Massive Wealth

Overall Financial Stress

Probably the most common financial problem most of us face is financial stress. The simple definition of Financial Stress is constant fear, worry, and anxiety about finances. Stress about your finances is one of the main contributors to overall stress and anxiety in most people’s lives.

Financial stress can even cause physical symptoms such as:

  • Loss of sleep
  • Increase anxiety
  • General irritability
  • Stress eating
  • Clenching/grinding your teeth
  • Heart palpitations

How to Eliminate Financial Stress

Obviously, the more you can do to fix your financial problems, the less stress you’ll have. I can tell you from personal experience that dealing with your financial problems decreases your stress level tremendously! Getting your finances straight is absolutely worth the time and effort, especially when it means eliminating a huge source of stress in your life.

So how do you start eliminating financial stress? Here are some things you can do:

  • Take inventory- know where you stand financially so you can make a forward-looking plan to do better with money .
  • Do a monthly written budget.
  • Ditch the credit cards and adopt a cash only lifestyle.
  • Get out of debt.
  • Get on the same page with your spouse about money.
  • Understand that financial problems don’t last forever, as long as you decide to do something about them.

Fix Your Financial Problems for Good

Fixing your financial problems may seem like a daunting task. But no matter what your financial situation is, you can make it better.

You may not be able to make it happen overnight. But when you make a plan to eliminate your financial problems for good, you can manage your money better and get the job done, usually in less time than you think.

So, whatever financial problems you face, get moving, take action, and you can solve your financial problems for good!

Reader Interactions

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August 25, 2020 at 7:08 am

Thank you for such and educative article. It is strength to the point and well explained. Kindly , what is your take on online Forex and stock trading as a side hustle.

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Single Parents: Financial Problems & How to Overcome Them

Inside: As a single mom can you honestly say you understand all your financial options? From insurance to retirement to debt here is your guide to all the common single parent financial problems and how to overcome them.

Single parents face a lot of constraints throughout their life. While managing everything single-handedly, they struggle to make ends meet, much less save for their retirement.

We are highlighting some common financial problems of single parents and solutions. If you’re a single parent, you might be able to relate with these.

Common financial problems and how to overcome them

Obstacle 1 : You might face difficulties while returning to work after a career gap.

Solution : The first reason for a woman to leave her work for a time period is caring for family, giving birth to a baby, or returning to work after a divorce. As a result, many women are struggling to re-enter the workforce.

And with growing awareness, some companies are also supporting them. For example, IBM is offering “returnships,” especially for women, to return to the workforce.

So, restructure your resume and appear for interviews. And be straightforward about your career gap to your interviewers. And once you get a good job, allot a certain amount from your paycheck towards retirement savings.

financial options

Solution : Life is unpredictable , and you might need money if an emergency arises. Being a single woman, you have to handle everything single-handedly.

So, you should be prepared enough to deal with any emergency. Having a rainy day fund will save you from taking out loans, and in turn, incurring debts, during exigency!

Related: Best Money Saving Tips for Single Moms

Obstacle 3 : You might lack proper financial planning as you need to handle everything single-handed.

Solution : It’s essential for everyone to do proper financial and retirement planning, but single parents should do it earlier, right from their first paycheck ! The two reasons are the paycheck gap and the time away from work.

In our country, the Equal Pay Act of 1963 was enacted to abolish the wage discrepancy based on gender. According to a 2016 study by the Bureau of Labor Statistics, women are paid 82 cents to every dollar men receive!

At the same time, women have to take care of their families, children, aging parents. And these things urge them to stay away from work.

The paycheck deficit, along with these responsibilities, makes the creation of a nest egg, a tedious job for single parents! As a result, you end up contributing less for retirement plans (like 401(k) or traditional IRA), due to a lack of financial planning.

Obstacle 4 : Procrastination of your retirement savings might lead to loss of benefits.

Solution : As a single parent, you should well-plan your retirement. If your employer is offering a 401(k), then you should fully utilize it! The contributions you make are pre-taxed from your paycheck, i.e., you won’t be taxed on that money during the year you earned it. You have to pay taxes while withdrawing during your retirement.

From 2019, you can contribute up to $19,000 of your pre-tax income to the 401(k) plan. And those above 50 years, can make an additional catch-up contribution of $6,000.

So, if your employer offers matching contributions, it will be an excellent start for your retirement plan!

Apart from that, you can also invest in a traditional IRA if your employer doesn’t offer a 401(k). Your investments in the traditional IRA are also a tax-deferred growth. From 2019, if you have an adjusted gross income of less than $122,000, then you will be eligible for a traditional IRA.

Related: 44 Ways to Easily Save Money

You can contribute a maximum of $6,000, and if you are above 50 years, you can make an additional contribution of $6,500.

So, start saving for your retirement early to reap all the benefits of these plans even if you’re not able to deposit a significant amount, deposit as much as you can. And, then try to increase the amount when you can manage it.

how to overcome family financial problems

Solution : Your child might suffer from adjustment problems because of your single parenting. He/she might behave weird due to that, resulting in squabbling between you and your child.

The key to this problem is communication and love ! So, learn how to stop freaking out at your child and try to understand what your child is going through.

Though it’s not possible for you to fix your child’s sorrows, you can listen to them. Love them to the fullest so that they find a safe haven in you.

Spending one-on-one time with your child also creates a special and unique bond! And this is sometimes better than if you were a nuclear parent.

And, while trying to be financially secure, explain your financial decisions to your child (when he/she can understand) so that the little one gathers knowledge right from a young age.

what you need to know about single parent financial options

Create a budget.

According to the USDA, the average cost to raise a child to age 18 is about $233,610!

Keep in mind that you have to bear this cost all alone. So, the baby step towards being a single super mom is, planning a budget for yourself!

First, you need to write your income from all sources along with your expenses. And then you can chalk out your budget in a spreadsheet . As a result, you will be able to track your expenses and restrict yourself from overspending.

Thus, creating a budget will help you to make a habit of saving and lead a frugal life ahead!

Stay away from debt

You should utilize your emergency fund if you need money to meet your sudden expenses. Still, if you have taken out any loan, you should pay it off at the earliest. But, what will you do if you are trapped with multiple debts?

Well, in that situation, what if you get a chance to pay off your debts at reduced interest rates? Isn’t that interesting?

If you opt for the debt consolidation method , you need to negotiate with your creditors for reducing the high interest rate of your debts. As a result, you have to pay a much less amount, in total, due to a reduced interest rate . Thus, it will help you to pay off your debts with ease!

You may opt for a balance transfer method to consolidate debts into a single one. It allows you to transfer all your high-interest credit card debts into a new credit card, preferably with a 0% Annual Percentage Rate (APR).

But before choosing a balance transfer card, read the terms and conditions carefully. Most of these cards offer a 0% or very low APR for an introductory period, after which the rate might increase to about 15% to 25%.

Related: Why You Should Never Withdraw Money From Your Debit Card

But, what if you don’t have enough money to pay off your outstanding balance amount?

Financial Pressure

In that case, you can choose a debt settlement to get rid of your debt trap !

In debt settlement, you have to negotiate with your creditor(s) to reduce the outstanding balance amount. If they agree, you can pay a lump sum amount to settle your debt, which is usually much lesser than your outstanding payable amount.

But after payment, your creditors mark those debts as “paid as settled” and it creates an adverse impact on your credit report for about seven years!

Opt for insurance policies

When you are fighting all odds, you have to be prepared to manage all possible risks. But how so?

Well, you can buy an insurance policy and transfer the cost of potential loss to the company.

You can opt for various insurance policies like:

Health insurance policies

Health savings account (hsa):.

A recent study, led by a Harvard group, published in The American Journal of Medicine, revealed that 62% of bankruptcies were caused by medical debt!

So, buying a health insurance policy will prevent you from being a victim of medical debts. Usually, contributions are made into the HSA by you or by your employer. It offers you ample benefits like:

  • Your contributions towards HSA are not taxed.
  • Your distributions for eligible medical expenses are not taxed.
  • You can pay for qualified medical expenses, which include dental, vision, and over-the-counter drugs.

It is a public health insurance program specially designed for low-income folks. In our country, almost 72 million people are covered under this insurance program!

Medicaid is a joint ventured insurance program by federal and state governments. The Affordable Care Act in 2010 suggested expanding the coverage to people with incomes at or below 138% of the national poverty level. From 2016, the federal poverty level is set at $11,880 for a single person and $4160 for each additional family member.

So, you need to check whether or not you are eligible for Medicaid, based on your state and income level.

Related: How to Teach Your Child to Budget

Children’s Health Insurance Program (CHIP)

It’s perfect for single mothers as it provides free or low-cost insurance. You might be eligible for the CHIP program if your income is too high for Medicaid.

It will cover your child until he/she attains the age of 19, and it usually includes essential health services.

Life insurance

According to a study by Genworth Financial, about 70% of single parents in our country lack life insurance !

Opting for a life insurance policy will provide your family with an additional source of income if something happens to you. You need to secure your child’s future when you pass away. It’s advisable to buy a policy which will cover at least 50% of your annual income. You can buy two types of life insurance: term insurance and whole life insurance or permanent life insurance.

Term life insurance covers you for a stipulated time like you can opt for it till the time your kids grow up. You can buy a term life insurance policy for 10 years, 20 years, and so on. And unfortunately, if you die within this term, then the policy will pay out to your nominee.

As the name sounds, whole life insurance will cover you for your entire life! Usually, it is costlier than a term life insurance plan as it consists of a “cash value.”

The value helps you to earn an interest, which is usually tax-deferred until you withdraw from the policy. And you can take out a loan against that cash value if needed.

However, the cash value component serves as a living policyholder benefit. So, you should withdraw that amount at the earliest, once it gets matured.

Opt for an education plan

You can opt for the 529 plan which is legally termed as “ Qualified Tuition Programs ” or “ Section 529 Plans ”. You can use this plan for saving and paying for your child’s higher education.

Basically, the 529 plan has got two types.

learn about finance options

Prepaid tuition plan

It allows you to purchase units or credits at participating colleges and universities at the current rate. Currently, prepaid tuition plans are operated by the state governments.

Education saving plan

It allows you to open an investment account to save for your child’s education.

You can save up to $10,000 per year from your education saving plan for tuition at any public, private, or religious school.

Look for tax credit opportunities

You might be eligible for an income-based tax credit for each of your children. But, before you get confused between tax credit and deduction, let me explain it to you.

The tax credit is the amount you can subtract from the amount of taxes you owe to the government. Whereas, the tax deduction is the amount that is lowered in tax liability by reducing your taxable income.

However, tax credits are favored over tax deduction because it reduces the total dollar amount. For example, the Child Tax Credit and the Child Dependent Care Credit offer you tax credit.

No matter what

Amidst these hurdles, we believe that being a super single mom, you will emerge as a winner.

Being a single mother is learning about strengths, you didn’t know you had, and dealing with fears you didn’t know existed. -Linda Wooten.

~This was a guest post ~

Valentina Wilson is a personal finance blogger who loves to write on how to manage personal finances in a better way. Traveling is also her passion, and she loves to explore different places alone.

To learn more about me, go to Bestdebtconsolidation.org , or follow her on Twitter @Valenti11423079

Single Parents: Financial Problems & How to Overcome Them

Hey there, I'm Jen! I've been a single mom for over ten years. I know firsthand how hard the single-parent journey can be. It’s my mission at Grace for Single Parents to uplift, renew, and propel single moms to live a full life with God's grace and love.

FamilyValuesHub.com is a go-to resource for affordable, fun, and engaging family experiences. We provide practical advice, tips, and inspiration for strengthening family bonds and creating lasting memories without overspending.

How to Overcome Family Financial Problems: 10 Practical Solutions

Many families struggle with debt, overspending, and lack of savings, unexpected expenses can cause financial strain, understanding common financial problems is the first step towards overcoming them, a monthly budget helps track income and expenses and prioritize spending., it’s important to include all expenses in the budget, including small ones like coffee or snacks., sticking to a budget can help reduce debt and increase savings., increasing your income, cutting back on expenses, prioritizing your goals, dealing with job loss, exercise, meditation, and other self-care practices, seek professional counseling or therapy, talk openly about feelings of stress with family members or friends, handle credit card debt wisely, build an emergency fund, improve your credit score, avoid taking out short-term cash loans, set aside dedicated time for discussing finances, talk calmly and respectfully, create concrete goals together, consider seeking professional help, offering non-cash assistance, providing emotional support, setting boundaries, meaningful gifts over cash, experiences over material items, avoiding bad habits, poor financial health can cause stress, anxiety, and depression, individuals experiencing poor mental health may struggle with managing finances effectively, addressing both financial and mental health issues together is crucial for overall well-being, 1. how long does it take to overcome financial problems in a family, 2. can i overcome my family’s financial problems alone, 3. is creating a budget really necessary, 4. what kind of non-cash assistance can i offer my family, 5. how do i talk to my partner about our financial issues without causing conflict.

Are you struggling with financial problems in your family? You’re not alone. Many families face financial challenges that can cause stress, anxiety, and even strain relationships. But there is hope. Overcoming financial problems requires patience, planning, and support .

The first step is to identify the problem and understand the situation. Is it overspending? A lack of income? Debt? Once you have a clear understanding of the problem, you can start taking action to address it.

For example, creating a budget can help you manage your finances better. Cutting back on unnecessary expenses can also free up money to pay off debt or save for emergencies.

In this post, we’ll provide practical tips for managing finances and dealing with financial stress. By the end of this article, you’ll have a better understanding of how to overcome financial problems in your family and take control of your finances.

Understanding Common Financial Problems Faced by Families

Managing finances is a challenge that many families face. It can be difficult to balance income and expenses, especially when unexpected costs arise.

One of the most common financial challenges faced by families is debt. It’s easy to accumulate debt when you’re living paycheck to paycheck or relying on credit cards to cover expenses. Overspending is another issue that can lead to financial trouble for families. When we spend more money than we have, it can quickly spiral out of control and result in mounting debts. Finally, a lack of savings is a significant problem for many families. Without a safety net, unexpected expenses like medical bills or car repairs can cause financial strain.

To overcome these issues, families need to create a budget and stick to it religiously. This means tracking all expenses and finding ways to cut back where possible. For example:

Cook at home instead of eating out.

Cancel subscription services you don’t use regularly.

Reduce energy usage by turning off lights when not in use.

It’s also important for families to prioritize paying down debt as much as possible while still maintaining basic living standards.

Even with a solid budget in place, unexpected expenses can still arise that put pressure on family finances. Medical bills are one example of an expense that can quickly add up and become overwhelming for families without adequate savings or insurance coverage.

To prepare for unexpected expenses like these, it’s essential to have an emergency fund set aside specifically for this purpose. Ideally, this should be at least three months’ worth of living expenses saved up in case of job loss or other unforeseen circumstances.

Another option is to consider taking out insurance policies that cover specific types of emergencies or unexpected expenses. For example, disability insurance can provide income replacement if a family member is unable to work due to illness or injury.

To overcome financial problems in the family, it’s essential to first understand what specific issues are causing the most concern. This requires taking a hard look at your finances and identifying areas where you may be overspending or accumulating debt unnecessarily.

Once you have a clear understanding of your financial situation, you can start taking steps to address any concerns proactively. This might include seeking out professional advice from a financial planner or counselor who can help you develop a plan for managing your money more effectively.

Creating a Monthly Budget to Manage Finances Better

Managing finances can be challenging, especially when you have a family to take care of. It’s not uncommon for families to face financial problems due to unexpected expenses or overspending. However, creating a monthly budget can help you manage your finances better and overcome financial problems in the family.

A monthly budget is an essential tool that helps you keep track of your income and expenses. You need to create a list of all your sources of income, including salaries, bonuses, commissions, or any other source of funds. Then you need to list all your regular expenses such as rent/mortgage payments, utility bills, groceries, transportation costs, medical bills, etc.

Once you have listed all your sources of income and expenses, it’s time to prioritize spending by allocating funds accordingly. Start by setting aside money for essential expenses like rent or mortgage payments, utility bills, etc., then allocate funds for other important items like groceries and transportation costs. Finally, set aside some money for discretionary spending like entertainment or dining out.

It’s easy to overlook small purchases like coffee or snacks when creating a budget. However, these small purchases can add up quickly over time and affect your overall financial health. Therefore, it’s important to include every expense, no matter how small it may seem.

To ensure that you don’t miss any expenses while creating a monthly budget , use online tools or mobile apps that help track every penny spent during the month. This way, you can see where your money is going and make adjustments if necessary.

Creating a monthly budget is just the first step; sticking with it is equally important. One way to do this is by setting achievable savings goals each month. This can be done by allocating a certain amount of money towards savings each month.

Another way to stick to your budget is by making minimum payments on credit cards or any other debts. This helps reduce the amount of interest that accrues on these debts over time.

Maximizing Your Income to Overcome Financial Problems

One of the most important things you can do is maximize your income . There are several ways to do this, from finding side hustles to negotiating a raise at work. By increasing your income, you can free up more money that can be used to pay off debt or build up savings.

One of the best ways to increase your income is by finding a side hustle. This could be anything from selling items online to offering freelance services in your area of expertise. By taking on extra work outside of your regular job, you can earn additional income that can help alleviate financial problems.

Another option is to negotiate a raise at work. If you feel that you are not being paid what you are worth, it may be time to have a conversation with your boss about increasing your salary. Be prepared with examples of why you deserve a raise and how it will benefit the company as well.

While increasing your income is important, it’s also crucial to cut back on unnecessary expenses. This means taking a hard look at where your money is going each month and identifying areas where you can save.

Start by cutting back on subscriptions and memberships that you don’t use or need. For example, if you’re paying for multiple streaming services but only watch one or two regularly, cancel the others and put that money towards paying off debt or building up savings.

Eating out is another area where many people overspend. While it’s nice to treat yourself occasionally, dining out regularly can quickly add up and eat into your budget. Instead, try cooking meals at home more often and packing lunches for work.

Finally, look for ways to save on regular expenses like groceries and utilities. Consider shopping at discount stores or buying generic brands instead of name brands when possible. You can also try negotiating lower interest rates on credit cards or refinancing loans to get a better rate.

It’s important to prioritize your goals. This means identifying what is most important to you and focusing your efforts on achieving those goals.

Start by setting short-term and long-term goals for yourself. Short-term goals might include paying off a credit card or building up an emergency fund, while long-term goals could include saving for a down payment on a house or planning for retirement.

Once you’ve identified your goals, create a plan for achieving them. This might involve making changes to your budget, finding ways to increase your income, or cutting back on expenses. Whatever the case may be, stay focused on your goals and keep working towards them until they are achieved.

If you experience job loss or a reduction in income, it can be especially challenging to overcome financial problems. In this situation, it’s important to stay calm and take action as soon as possible.

Start by assessing your expenses and identifying areas where you can cut back.

Dealing with Financial Stress: Effective Ways to Cope

Financial stress can be overwhelming and can cause anxiety, depression, and other health problems. It is essential to find ways to ease the stress caused by financial problems. Here are some effective ways to cope with financial stress:

When money troubles are getting you down, getting up and moving around can help you feel better. Exercise is a great stress-buster, and it won’t cost you a dime. So, if you’re feeling overwhelmed by financial worries, try going for a walk or doing some yoga. You might be surprised at how much better you feel. It helps release endorphins that improve mood and reduce stress levels. Meditation is another effective way to reduce stress. It helps calm the mind and promotes relaxation. Other self-care practices such as deep breathing exercises, yoga, or taking a relaxing bath can also help ease financial stress.

When it comes to money troubles, it’s easy to feel like you’re in over your head. Seeking professional counseling or therapy may be necessary for some individuals experiencing severe stress or anxiety due to money worries. A therapist can provide support and guidance on how to manage your finances better while also addressing any underlying emotional issues related to money.

If you’re feeling stressed about money, it can help to talk to your family or friends about it. Sharing your thoughts and feelings can make you feel better. They may offer support and advice on how they have handled similar situations in the past. Sometimes just talking about your worries out loud with someone you trust can make you feel less stressed.

Credit card debt is one of the most common causes of financial stress for many people. Here are some tips on how to handle credit card debt wisely:

Pay off high-interest cards first.

Avoid using credit cards for purchases unless it’s an emergency.

Consider transferring balances from high-interest cards to lower-interest-rate cards.

Set up automatic payments so you don’t miss any payments.

Having an emergency fund can help ease financial stress when unexpected expenses arise, such as car repairs or medical bills. Start by setting aside a small amount each month until you have built up enough savings to cover at least three to six months of living expenses.

A low credit score can cause financial stress when trying to obtain a loan or credit card. Here are some tips on how to improve your credit score:

Pay bills on time.

Keep balances low on credit cards.

Don’t open too many new accounts at once.

Check your credit report regularly for errors.

If you’re looking for a quick fix to your money troubles, borrowing cash for a short period might seem like a good idea. But beware! This could actually make things worse in the long term. These loans often come with high-interest rates and fees, making it difficult to pay them back quickly. Instead, consider other ways to handle unexpected expenses such as borrowing from family or friends or selling items you no longer need.

Communication is Key: How to Talk to Your Family About Financial Problems

Talking about finances can be uncomfortable, but it’s essential for overcoming financial problems as a family unit. Open communication about money matters can help you work together towards your financial goals and avoid conflicts.

One of the keys to successful communication about finances is setting aside dedicated time for it. Choose a time when everyone is free from distractions and able to focus on the discussion. This could be during a weekly family meeting or another designated time that works for everyone.

During this time, turn off phones and other devices that may interrupt the conversation. By doing this, you’re showing your family members that you value their input and are committed to working together toward a solution.

When discussing financial problems with your family, it’s important to remain calm and respectful. Avoid placing blame or pointing fingers at anyone. Instead, focus on finding solutions together.

Start by expressing your concerns in a non-confrontational way. For example, “I’m worried about our current debt load,” or “I’d like us all to be saving more money.” Then ask for input from each family member so that everyone has an opportunity to share their thoughts and feelings.

Remember that effective communication involves both speaking and listening. Be sure to actively listen when others are speaking without interrupting or dismissing their ideas.

Once you’ve opened up the lines of communication with your family members, it’s time to create concrete goals together. This could include creating a budget , paying off debt, or saving for specific expenses such as college tuition or retirement.

To make these goals achievable, break them down into smaller steps that can be accomplished over time. For example:

If you want to pay off debt, start by creating a list of all debts and their interest rates.

Then prioritize which debts to pay off first, such as those with the highest interest rates.

Finally, create a plan for paying off each debt over time.

By breaking down larger goals into smaller steps, you’ll be able to stay motivated and make progress toward your financial goals.

If you’re struggling with financial problems as a family, it may be helpful to seek professional help. Financial advisors or credit counselors can offer guidance on budgeting, saving money, and managing debt.

Remember that seeking professional help is not a sign of weakness. In fact, it’s a proactive step towards improving your financial situation and achieving your goals as a family.

Offering Support and Non-Cash Assistance Instead of Enabling Bad Habits

Financial problems can cause a lot of stress and anxiety, especially when it involves family members. It’s natural to want to help loved ones who are struggling financially, but sometimes giving money can do more harm than good.

One of the most common ways people try to help their loved ones is by giving them money. However, this can often lead to enabling bad habits such as overspending or not taking responsibility for their own finances. Instead of giving money, consider offering non-cash assistance such as babysitting services or helping with household chores.

Here are some examples:

Offer to babysit your sister’s kids so she can work overtime.

Help your brother-in-law fix his car instead of lending him money for repairs.

Cook meals for your parents instead of buying them groceries.

By offering non-cash assistance, you’re still providing help without contributing to any negative behaviors that may have caused financial problems in the first place.

Financial problems can take a toll on a person’s mental health and well-being. Providing emotional support and encouragement during difficult times can make all the difference in helping loved ones overcome their financial struggles.

Here are some ways you can provide emotional support :

Listen actively without judgment.

Offer words of encouragement and positivity.

Help brainstorm solutions together.

Celebrate small wins along the way.

Remember that overcoming financial problems is not an easy task, so having someone who believes in them and supports them every step of the way is crucial.

While it’s important to offer support and assistance, it’s equally important to set boundaries. Enabling negative behaviors will only perpetuate the cycle of financial problems and make it harder for your loved ones to break free from them.

Here are some ways to set boundaries:

Be clear about what you’re willing and not willing to do.

Avoid giving into emotional manipulation or guilt-tripping.

Encourage your loved ones to take responsibility for their own finances.

Don’t bail them out of every financial problem they encounter.

By setting boundaries, you’re sending a clear message that you’re there to help but not enable negative behaviors.

Giving Gifts Without Enabling Bad Habits

Giving cash may seem like the most practical option. However, offering a gift that aligns with a person’s goals or hobbies can be more meaningful and beneficial in the long run. For example, if someone is working towards a fitness goal, consider buying them a gym membership or workout equipment instead of giving them money.

Here are some good things to keep in mind when giving gifts:

Consider the recipient’s interests and needs.

Choose something that will help them achieve their goals or improve their situation.

Avoid gifts that enable bad habits or addictions.

In addition to thoughtful gifts, offering experiences can create lasting memories for your loved ones. Instead of material items, consider gifting tickets to a concert or museum exhibit, cooking classes, or even a weekend getaway. These experiences not only provide enjoyment but also offer opportunities for personal growth and learning.

Here are some ideas for experience-based gifts:

Tickets to a sporting event or concert

Cooking classes or wine tasting

A spa day or massage appointment

A weekend getaway to a nearby city

While giving gifts can be an excellent way to support your loved ones during financial struggles, it’s essential to avoid enabling bad habits like excessive drinking or gambling. If you’re unsure about what types of gifts may contribute to these negative behaviors, consider asking close friends and family members for advice.

Here are some examples of gifts that should be avoided:

Gift cards for bars or casinos

Alcohol-related products like beer mugs or shot glasses

Lottery tickets or scratch-offs

The Link Between Poor Financial Health and Poor Mental Health

Financial problems can be a significant source of stress, anxiety, and depression. In fact, research has shown that poor financial health is closely linked to poor mental health. Individuals experiencing financial difficulties may struggle with managing their finances effectively, which can further exacerbate their mental health issues.

The link between financial problems and mental health issues is well-documented. According to a survey conducted by the American Psychological Association (APA), money is the leading cause of stress for Americans. In fact, 72% of respondents reported feeling stressed about money at least some of the time.

When individuals are struggling financially, they may experience feelings of helplessness or hopelessness. They may worry about how they will pay their bills or provide for their families. These worries can lead to chronic stress and anxiety, which can take a toll on one’s mental health over time.

On the other hand, individuals experiencing poor mental health may also struggle with managing their finances effectively. For example, someone who is dealing with depression or anxiety may have difficulty concentrating on tasks like paying bills or balancing a checkbook.

Individuals who are experiencing mental health issues may be more likely to engage in impulsive spending behaviors as a way to cope with negative emotions. This can lead to further financial difficulties down the road.

Given the close link between financial problems and mental health issues, it’s important to address both types of challenges together in order to improve overall well-being.

One key step is seeking out professional help from a therapist or counselor who specializes in both financial counseling and mental health treatment. These professionals can help individuals develop healthy coping strategies for managing stress related to finances and mental health issues.

Another important step is to ensure that you have adequate health insurance coverage. Mental health services can be expensive, and many individuals may not have access to the care they need without proper insurance coverage.

Finally, it’s important to develop healthy financial habits over time. This might include creating a budget, setting financial goals, and working with a financial advisor or planner to help manage your money effectively.

Overcoming Financial Problems in the Family is Possible with Patience, Planning, and Support

In conclusion, overcoming financial problems in a family requires patience, planning, and support. Understanding common financial problems faced by families is the first step toward finding solutions. Creating a monthly budget helps manage finances better while maximizing income can help overcome financial problems. Dealing with financial stress requires effective coping mechanisms. Communication is key when talking to your family about financial problems. Offering support and non-cash assistance instead of enabling bad habits can also help. Giving gifts without enabling bad habits can be tricky but it’s possible.

It’s important to note that poor financial health can lead to poor mental health. Therefore, taking care of your finances not only benefits you financially but also mentally and emotionally.

To start overcoming your family’s financial problems today, take the time to understand the root cause of the problem and create a plan to address it. Seek support from friends or professionals if needed.

There is no set timeline for overcoming financial problems as it depends on individual circumstances. However, with patience and consistent effort toward improving finances, progress can be made over time.

While having support from family members or professionals can make the process easier, it is possible to overcome financial problems alone through careful planning and discipline.

Yes, creating a budget is essential for managing finances effectively as it helps track expenses and identify areas where spending can be reduced.

Non-cash assistance could include offering childcare services or helping with household chores to free up time for other income-generating activities.

Approach the conversation with an open mind and a willingness to listen. Avoid blaming or accusing language and focus on finding solutions together. Consider seeking the help of a financial counselor if needed.

Types Of Therapy For Financial Stress And Money Issues

Therapy For Financial Stress

Financial stress can be a significant source of anxiety and worry for many individuals. Whether it’s struggling to make ends meet, managing debt, or dealing with unexpected expenses, financial stress can take a toll on an individual’s emotional and psychological well-being. However, therapy can be a valuable tool for managing financial stress and improving financial well-being. In this blog, we’ll explore the benefits of therapy for financial stress and the types of therapy that can help manage financial stress effectively. We will also discuss how a therapist can help to overcome stress related to money.

  • 1 What Is Financial Stress?
  • 2 Can Therapy Help To Overcome Financial Stress?
  • 3 Issues Addressed By Therapy For Financial Stress
  • 4.1 Cognitive-behavioral therapy (CBT)
  • 4.2 Mindfulness-based therapy
  • 4.3 Financial therapy
  • 4.4 Family therapy
  • 4.5 Psychodynamic therapy
  • 4.6 Solution-focused therapy
  • 4.7 Group therapy
  • 4.8 Career counseling
  • 5 How Will A Therapist Address Financial Stress?
  • 6 Conclusion

What Is Financial Stress?

What Is Financial Stress?

Can Therapy Help To Overcome Financial Stress?

Yes, therapy can be an effective way to overcome financial stress. A therapist can help individuals identify the underlying causes of their financial stress and develop coping strategies to manage it. Therapy can also provide emotional support and help individuals develop positive financial behaviors, such as budgeting and saving. Cognitive-behavioral therapy (CBT) and financial therapy are two approaches that can help address financial stress. Working with a therapist can help individuals feel more empowered and in control of their financial situation.

Issues Addressed By Therapy For Financial Stress

Therapy for financial stress can address a range of issues related to an individual’s financial situation and help improve overall well-being. Some common issues that may be addressed in therapy for financial stress include:

  • Budgeting and money management: A therapist can work with individuals to develop practical skills related to budgeting, saving, and managing debt. This can include developing a personalized budgeting plan, setting financial goals, and creating a savings plan.
  • Financial anxiety and stress: Financial stress can be a significant source of anxiety and stress for many individuals. A therapist can help individuals identify the underlying causes of their financial stress and develop strategies for managing it.
  • Shame and guilt related to financial difficulties: Financial difficulties can be accompanied by feelings of shame and guilt. A therapist can provide a safe, non-judgmental space to explore these feelings and develop strategies for overcoming them.
  • Communication about money with loved ones: Money can be a sensitive and difficult topic to discuss with loved ones. A therapist can help individuals develop strategies for communicating more effectively about money with their partners, family members, or others.
  • Negative beliefs and behaviors related to money: Negative beliefs and behaviors related to money can be a significant source of financial stress. A therapist can help individuals identify and challenge these beliefs and behaviors, and develop more positive patterns of thought and behavior related to money.
  • Financial trauma : Individuals who have experienced financial trauma, such as bankruptcy, foreclosure, or identity theft, may benefit from therapy to address the emotional and psychological impact of these experiences.

Types Of Therapy For Financial Stress

Several types of therapy can be effective in addressing financial stress:

Cognitive-behavioral therapy (CBT)

Cognitive-behavioral therapy (CBT)

Mindfulness-based therapy

Mindfulness -based therapy focuses on being present in the moment and developing a non-judgmental attitude toward one’s thoughts and feelings. This approach can help address financial stress by increasing an individual’s awareness of their relationship with money. Mindfulness-based therapy can help individuals develop a more positive attitude toward money and reduce financial stress by helping them manage their thoughts and emotions around money.

Financial therapy

Financial therapy combines traditional therapy techniques with financial education and coaching . This approach can help address both the emotional and practical aspects of financial stress. A financial therapist can help individuals identify the underlying emotional and psychological factors that contribute to their financial stress, as well as provide practical tools and strategies to improve their financial situation. Financial therapy can also help individuals develop a better understanding of their relationship with money and identify ways to improve it.

Family therapy

Family therapy

Psychodynamic therapy

Psychodynamic therapy is a type of therapy that focuses on exploring unconscious patterns of behavior and how they impact an individual’s emotions, relationships, and overall well-being. In addressing financial stress, psychodynamic therapy can help individuals identify any unconscious beliefs or patterns related to money that may be contributing to their financial stress. It can also help individuals explore any past experiences related to money, such as childhood experiences, that may be impacting their current financial situation.

Solution-focused therapy

Solution- focused therapy is a type of therapy that focuses on identifying and building on an individual’s strengths and resources to achieve specific goals. In addressing financial stress, solution-focused therapy can help individuals identify their financial strengths and resources and use them to achieve their financial goals. It can also help individuals develop specific action plans to address their financial stress and achieve financial stability.

Group therapy

Group therapy involves working with a therapist in a group setting with other individuals who are experiencing similar challenges. In addressing financial stress, group therapy can provide individuals with a supportive community and a safe space to share their experiences and challenges. It can also provide individuals with opportunities to learn from others and develop new strategies to manage their financial stress.

Career counseling

Career counseling can help address financial stress by helping individuals identify career goals and develop a plan to achieve them. Counselors can help individuals explore their strengths and interests and identify career paths that align with their values and financial needs. This can help individuals feel more confident and empowered in their careers, which can in turn reduce financial stress.

How Will A Therapist Address Financial Stress?

How Will A Therapist Address Financial Stress?

  • Identifying negative thought patterns and behaviors related to money and finances.
  • Developing coping strategies, such as relaxation techniques and stress-reduction strategies.
  • Developing practical skills related to budgeting, saving, and managing debt.
  • Exploring the emotional and psychological factors that contribute to financial stress, such as anxiety, shame, and guilt.
  • Identifying and challenging any irrational beliefs or assumptions related to money and finances.
  • Developing positive financial habits and behaviors, such as setting financial goals, tracking expenses, and creating a savings plan.
  • Developing strategies to communicate more effectively about money with loved ones.
  • Exploring past experiences related to money and finances that may be impacting the individual’s current financial situation.
  • Developing strategies to increase financial literacy and confidence in managing money.

In conclusion, financial stress can have a significant impact on an individual’s emotional and psychological well-being. However, therapy can provide individuals with the tools and strategies they need to manage financial stress effectively. Through therapy, individuals can address the underlying causes of their financial stress, develop practical skills for managing their finances, and increase their confidence and financial literacy. If you’re struggling with financial stress, seek help from a qualified therapist who can support you in your efforts to achieve financial stability and improve your overall well-being.

For more information, please contact MantraCare. Stress can have both physical and mental effects on the body. This can lead to negative consequences such as anxiety,  depression , and even physical illnesses. If you have any queries regarding  Online Stress Counseling  experienced  therapists  at MantraCare can help:  Book a trial Stress therapy session .

Mantra Care aims at providing affordable, accessible, and professional health care treatment to people across the globe.

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How to Overcome Financial Problems in Family: Advice from Experts

How to Overcome Financial Problems in Family: Advice from Experts

Money is one of the top causes of stress in family and relationships. When you are struggling financially, it can be difficult to maintain a positive relationship with your partner or spouse. In this blog post, we will be discussing how to overcome financial problems in the family . We will be hearing from experts on h ow to best manage money and keep your family afloat during tough times. Keep reading for helpful advice.

Page Contents

How to Overcome Financial Problems in Family?

1. talk about your finances early and often.

One of the most important things in a relationship and family is communication. This is especially true when it comes to finances. Money is often a touchy subject, but it’s important to talk about your financial situation early and often with your partner. Money problems are one of the leading causes of divorce, so it’s vital to get on the same page about your finances.

One way to do this is to create a budget together. This will help you both understand where your money is going and make sure that you’re on the same page about your financial goals. If you have different spending habits, you may need to compromise in order to reach your financial goals.

For example, one person may be more comfortable with taking risks while the other may prefer to save their money. Whatever your financial situation, it’s important to talk about it openly with your partner. By doing so, you can overcome any financial problems as a team.

2 . Start by communicating with your partner about your finances.

First, start by communicating with your partner about your finances. It can be difficult to talk about money, but it is important to be on the same page about your financial goals and How to Overcome Financial Problems in Family plans.

If you’re not sure where to start, try sitting down and creating a budget together. Once you have a better understanding of your income and expenses, you can start making changes to improve your financial situation. If you’re struggling to make ends meet, there are also many resources available to help families get back on track.

Talk to your partner about your options and look for ways to cut costs and save money. With open communication and a little effort, you can overcome financial problems in your family.

3 . Try to make extra money where you can.

It can be difficult to make ends meet, especially if you have a family to support. The good news is that there are a number of ways to overcome financial problems. One option is to try to make extra money where you can.

This may involve picking up a part-time job or taking on freelance work. If you have some extra time and want to earn a bit of extra cash, this can be a great solution. 

4 . Be mindful of your spending habits.

The most common financial problems in families are due to overspending. This can be a difficult habit to break, but it is important to be mindful of your spending habits. One way to overcome financial problems in your family is to create a budget.

Track your income and expenses so that you know where your money is going. This will help you to make informed decisions about your spending and allow you to save money.

5 . Start an emergency fund.

Many families experience financial problems at one time or another. An emergency fund can support you cover unexpected expenses without going into debt. To start an emergency fund, set aside a small amount of money each month until you have saved enough to cover three to six months of living expenses.

Then, keep the money in a savings account so you can access it quickly if you need it. Once you have an emergency fund in place, you can feel confident that you can handle whatever life throws your way.

6 . Consider talking to a financial advisor.

Families experience financial problems for a variety of reasons. Perhaps one parent recently lost their job, or the family has accumulated a large amount of debt. Whatever the reason, financial problems can be a source of stress for both parents and children.

If you are struggling to make ends meet, it may be time to consider talking to a financial advisor. A financial advisor can help you develop a budget and set financial goals. They can also give advice on how to reduce your expenses and increase your income.

In addition, they can provide support and encouragement during difficult times. If you are struggling to manage your finances, talking to a financial advisor may be the best decision you have ever made.

7 . Make a foolproof plan to get out of debt.

If you have financial problems, it can be difficult to figure out how to start fixing them. You may feel like you’re stuck in a hole that’s too deep to climb out of. But there are steps you can take to begin overcoming your financial difficulties.

The first step is to make a plan. Sit down and analyze where all of your money is going each month. Make a budget and try to stick to it as best you can. Try to find ways to save money each month so you can put more towards your debt.

The second step is to get help if you need it. Talk to a financial counselor or adviser who can help you create a plan to get out of debt.

Finally, be patient. It will probably take some time to get out of debt, but if you stick to your plan and make small changes in your spending habits, you will eventually get there. Remember, even if it feels like it, you’re not alone in this—millions of Americans are dealing with financial problems right now. You can overcome them, too.

8 . Build up your credit score.

One important step is to build up your credit score. A good credit score can help you get lower interest rates on loans and credit cards, which can save you hundreds or even thousands of dollars over time.

There are a number of ways to boost your credit score, including paying your bills on time, maintaining a healthy credit mix, and keeping your credit usage low. By taking these steps, you can start to improve your financial situation and reduce your stress levels.

9 . Look into government assistance programs.

Many families experience financial difficulties at some point. A lost job, an unexpected medical bill or a major home repair can all lead to a temporary setback. However, for some families, these challenges can become overwhelming.

When this happens, it may be time to look into government assistance programs. These programs can provide families with the resources they need to make ends meet. In addition, they can also offer guidance and support to help families get back on their feet.

Whether it helps with food or housing costs, there are a variety of government assistance programs available. By doing a bit of research, families in need can find the help they need to overcome their financial challenges.

10 . Save money where you can.

How to Overcome Financial Problems in Family? If you are experiencing financial problems in your family, do not despair. There are ways to overcome these difficulties. The first step is to get everyone on the same page.

If everyone in the family is working towards the goal of financial stability, it will be easier to achieve. Each member of the family should be aware of the family’s monthly income and expenses. This information should be shared openly so that everyone can make informed decisions about spending and saving.

Once you have a clear picture of your family’s finances, you can start looking for ways to save money. One way to do this is to cut back on unnecessary expenses. Take a close look at your budget and see where you can reduce spending.

For example, you might want to cancel your cable subscription or eat out less often. Every little bit saves. You can also look for plans to increase your income. Perhaps you can get a part-time job or start a home business. Any extra money you can bring in will help ease the financial burden on your family.

If you are willing to make some changes, it is possible to overcome financial problems in your family. By getting everyone on board and cutting back on expenses, you can put your family on the path to financial stability .

11 . Don’t give up hope.

No matter how difficult things might seem, it’s important to remember that there is always hope. You can get through this tough time and come out stronger on the other side. Talk to your family and friends for support and advice. Seek out resources and assistance from government programs or nonprofit organizations. And most importantly, don’t give up hope. With a little effort and determination, you can overcome financial problems in your family.

Next Read: Starting a Business in 2022: What You Need to Know

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  • J Palliat Med

The Patient and Family Member Experience of Financial Stress Related to Critical Illness

Nita khandelwal.

1 Department of Anesthesiology and Pain Medicine, University of Washington, Harborview Medical Center, Seattle, Washington, USA.

2 Cambia Palliative Care Center of Excellence, University of Washington, Harborview Medical Center, Seattle, Washington, USA.

Ruth A. Engelberg

3 Division of Pulmonary, Critical Care, and Sleep Medicine, Department of Medicine, Harborview Medical Center, University of Washington, Seattle, Washington, USA.

Catherine L. Hough

Christopher e. cox.

4 Division of Pulmonary and Critical Care Medicine, Department of Medicine, Duke University, Durham, North Carolina, USA.

5 Program to Support People and Enhance Recovery, Duke University, Durham, North Carolina, USA.

J. Randall Curtis

Associated data.

Background: The experience of financial stress during and after critical illness for patients and their family is poorly understood.

Objectives: Our objectives were to (1) explore common financial concerns, their contribution to emotional stress, and potential opportunities for interventions to reduce financial stress in patients with critical illness and their family members; and (2) confirm patient and family members' willingness to provide information on this topic.

Design: Cross-sectional survey study.

Setting/Subjects : Patients (18/24, response rate 75%) and their family members (32/58, response rate 55%) from two prior randomized trials at an urban, level 1 Trauma center.

Results: Ten (56%) patients and 19 (70%) family members reported financial worries during an intensive care unit (ICU) stay; 70% of both groups reported financial worries post-ICU discharge. Thirty percent (3/10) of patients and 43% (10/23) of family members who were not asked about financial concerns by hospital staff wished that they had been asked. Both patients and family believed that it would have been helpful to have information about insurance coverage, interpreting hospital bills, and estimated out-of-pocket costs. Among patients, 47% favored receiving these services after the ICU stay (7/15), while 20% (3/15) preferred these services in the ICU; 73% of family members preferred receiving them during the ICU stay (22/30), while 27% (8/30) preferred these services after the ICU stay.

Conclusion: Our findings suggest that the experience of financial stress and the worry it causes during and after critical illness are common and potentially modifiable with simple targeted interventions.

Introduction

Financial stress is strongly correlated with health-related quality of life among outpatients with conditions such as cancer, indicating that financial stress is an important patient-centered outcome. 1 Although we know that patients and family members experience financial stress during and after critical illness, 2–7 metrics are lacking that quantify this stress or provide insights into specific financial stressors and interventions that might alleviate these concerns. Therefore, we conducted a survey-based study to explore causes of financial stress, the degree to which financial concerns cause distress, and attitudes toward services that could possibly reduce financial distress. Our rationale for this study was also to assess patient and family members' willingness to provide information on this sensitive topic and to confirm that addressing financial stress among those who have experienced critical illness can be feasibly performed in future investigations. We administered this questionnaire to a sample of patients with a history of critical illness who were mechanically ventilated and their family member caregivers; this study provides initial data from the questionnaire.

Setting and study population

Participants were enrolled from three intensive care units (ICUs) (medical/cardiac, trauma/surgical, neurology/neurosurgical) at a level 1 trauma hospital in Seattle, Washington.

Eligible participants included family members of critically ill patients requiring mechanical ventilation who survived their critical illness. Patients were ≥18 years old and had previously participated in one of two randomized trials: the Coping Skills Training versus Education Program (CSTEP) 8 or the Facilitating Communication Study (FCS). 9 Both trials used a systematic sampling strategy to identify consecutive eligible patients; participation rates for family members were 49% (CSTEP) 8 and 76% (FCS). 9

Separate questionnaires were developed for patients and family members. Questions were derived from a review of published questions 10 as well as inputs from social workers ( n  = 5), financial counselors ( n  = 2), health economists ( n  = 3), and ICU researchers and clinicians ( n  = 3). The survey was reviewed and piloted for content and clarity by participants of a post-ICU discharge support group 11 and members of the Cambia Palliative Care Center of Excellence Community Advisory Board.

Key components of financial stress include both objective financial burden (e.g., lost income, unemployment) and subjective financial distress (e.g., worry from perceived financial prospects). 12 Our questions addressed experiences during and after ICU discharge, and encompassed three domains: (1) objective measures related to financial well-being, including employment, household finances, and hospital bills/debts; (2) subjective measures of finance-related stress and burden; and (3) attitudes toward usefulness of services to reduce financial worry. Survey questions are available in the Supplementary Data .

Recruitment and data collection

Participants were contacted by mail in March 2017. Mailings included an initial letter with opt-out postcard, a second mailing with questionnaire and US $5 incentive, and two additional mailings to nonrespondents at four and six weeks. The time between respondents' participation in the original study and recruitment to this study ranged from 2 to 6.5 years. The University of Washington institutional review board approved the study protocol (No. 52641).

SPSS Version 19 was used to obtain frequency distributions for categorical variables and means with standard deviations for continuous variables.

Participant demographics

The sample included 18 patients and 32 family members ( Table 1 and Supplementary Table S1 ). The response rates for patients and families for this survey were 75% and 55%, respectively ( Supplementary Table S2 ).

Characteristics of Participants

ICU, intensive care unit; SD, standard deviation.

Patients: Approximately one-third of patients (5/16) had an annual pretax household income of >$50,000 before hospitalization, and 47% were employed full-time before hospitalization (8/17). Fifty percent (9/18) had commercial insurance ( Table 1 ).

Families: Nearly half of family (13/32) were the patient's spouse or partner. Approximately two-thirds (18/27) had an annual pretax household income of >$50,000 (18/27).

Objective measures of financial well-being

Patients: 47% of patients (8/17) with employment data reported reductions in employment attributable to their illness and 41% stopped working (7/17). Half of patients had dipped into savings (8/16), and 44% of patients reported incurring debt because of medical bills (8/18).

Families: 13% reported post-ICU discharge employment changes as a result of the patient's ICU stay (3/24). Approximately half of family members reported dipping into savings as a result of caregiving expenses (15/29).

Subjective measures of finance-related stress

Patients: Reflecting back to the ICU stay, 56% patients said that finances had been a “somewhat, quite or extremely important” source of worry, and a similar percentage indicated that they worried “some, most, or all of the time” (10/18). “Household bills” and “lost income from work” were the most common sources of worry. After hospital discharge, 70% worried about finances “some, most, or all of the time” (12/17); 35% said that finances were an extremely important source of postdischarge worry (6/17).

Families: 70% family members reported worrying about finances “some, most, or all of the time” during the patient's ICU stay (19/27). Hospital bills, household bills, job security, lost income from work, and food/parking/lodging/transportation during the hospital stay were all reported sources of worry. Forty-six percent felt that being a caregiver had increased their financial worries (12/26).

Attitudes toward services to reduce financial distress

Patients and family members responded similarly to questions about desired services. Sixty-three percent of patients (10/16) and 85% of family members (23/27) reported that they were not asked about financial concerns during the ICU stay. Among those who were not asked about financial concerns during the ICU stay, 30% of patients (3/10) and 43% of family members (10/23) would have liked to be asked. Both patients and family members felt that information about insurance coverage, interpreting hospital bills, and estimated out-of-pocket costs in and after the hospital stay would be helpful ( Fig. 1 ). Among patients, 47% favored receiving these services after the ICU (7/15), while 20% (3/15) preferred these services in the ICU; 73% of family members preferred receiving them during the ICU (22/30), while 27% (8/30) preferred these services after the ICU.

An external file that holds a picture, illustration, etc.
Object name is jpm.2019.0369_figure1.jpg

ICU services to reduce financial worry. Patient and family member responses to potential services that may have reduced financial worry. *Response options varied for respondents, with patients offered yes, no, and not sure, and families offered yes, no. FMLA, Family and Medical Leave Act; ICU, intensive care unit.

Our study revealed several important findings: (1) financial concerns were a source of worry for most critically ill patients and family members; (2) patients more often preferred receiving financial information after ICU discharge with family members preferring to receive it in the ICU; and (3) the majority of participants felt that it would be helpful to receive information about interpreting hospital bills, understand insurance coverage, and anticipate out-of-pocket costs.

Our finding that financial stress affected the majority of study participants speaks to the high prevalence of financial stress and why it is important to understand how this impacts patients and family members during and after critical illness. While in our work we have previously found financial stress to mediate symptoms of anxiety and depression in patients with critical illness, few additional studies are available to describe the associations between financial stress and patient- and family outcomes. 2 Most studies in this area have been conducted with patients with cancer, and have reported its association with decreased quality of life, 13 higher symptom burden, 14 , 15 poor adherence to treatment, 16 and poor survival. 17 Patients with advanced cancer have reported financial stress to be more severe than physical, family, or emotional distress. 18 Our response rates suggest that participants were eager to discuss this topic and their experiences despite the lapse in time between participating in the original trials and completing this questionnaire.

We found that patients and families differed in the time frame within which they preferred to discuss financial concerns. This suggests that a simple screening questionnaire assessing when patients or families would like to address financial concerns (i.e., during or after an ICU admission) should be evaluated to facilitate appropriate triage. The majority of participants felt that information on how to interpret hospital bills, expected out-of-pocket costs, and insurance coverage would be helpful; this provides insights into potential counseling services that might help alleviate financial worry. One mechanism to address these topics may be a financial navigator who assists patients or family members with these types of questions and concerns. These types of novel interventions are being explored in the oncology population with promising results. 19

Our study has several limitations. First, our sample size was small and from a single center, and thus results may not be generalizable. Further, selection bias associated with the criteria for the CSTEP 8 and FCS 9 trials could limit generalizability. However, despite these limitations, we were able to observe some trends worthy of additional investigation. Second, significant time elapsed between the pertinent ICU admission and recontact for this study, which might reduce recall of financial stress; however, our response rates suggest that financial stress has a significant impact on both patients and families, and is remembered years later. Last, the questionnaire has content validity based on our review by investigators and others, but has not undergone formal validation. Further studies are needed to confirm and extend this preliminary validation.

Our study has several strengths. First, to our knowledge, this is the first survey-based study to examine sources of financial distress and attitudes toward services to address and reduce this distress in a population that experienced critical illness. Second, although further study is needed, this survey provides questions that address domains of interest to patients and family members, and confirms their willingness to provide information on this topic. Evaluating this survey in larger and more diverse cohorts could provide valuable information about the experience of financial stress and the distress it causes during and after critical illness and ways to modify it.

In conclusion, this study suggests that the experience of financial stress and the distress it causes during and after critical illness is common, potentially modifiable with targeted interventions, and a topic of importance to critically ill patients and their family members worthy of future investigation.

Funding Information

This project was supported by the Agency for Healthcare Research and Quality (AHRQ) (K12HS022982). This research was also made possible by Grant Number 195 from the Patient-Centered Outcomes Research Institute (PCORI), the National Institute of Nursing Research (R01 NR05226), and the Cambia Health Foundation.

Supplementary Material

Author disclosure statement.

No competing financial interests exist.

The content is solely the responsibility of the authors and does not necessarily represent the official views of AHRQ.

Supplementary Data

Supplementary Table S1

Supplementary Table S2

Women Blazing Trails

Women Blazing Trails

9 Common Problems in a Relationship and How to Deal With Them

Posted: November 20, 2023 | Last updated: November 20, 2023

<p><span>Narcissists believe they are special and deserve preferential treatment. By treating them like everyone else, you invalidate their sense of entitlement and may even make them feel inferior.  </span></p>

Relationships are an essential part of our lives, whether it’s with our partners, family members, or friends. However, no matter how strong the bond is, every relationship has rough patches. It’s normal to face conflicts and challenges in a relationship, but how we deal with them matters. In this article, we’ll discuss nine common problems in a relationship and provide practical tips on handling them. 

<p>It’s important to give your partner time to process the information and react. Don’t expect an immediate response. They may need a moment to absorb what you’ve just shared, especially if it comes as a surprise. It’s crucial to respect their need for space and time to gather their thoughts before responding. Understand that their initial reaction might be driven by shock or confusion, so be prepared for a range of emotions. Show patience and refrain from rushing them into a response.</p>

Communication Issues

Communication is the key to a healthy relationship. But when communication breaks down, it can harm the bond between two people. Lack of proper communication often leads to misunderstandings, conflicts, and hurt feelings. To solve this problem, being open and honest with your partner is essential. Express your thoughts and feelings clearly, listen actively, and resolve conflicts by finding a middle ground.

<p>Listen to your partner’s thoughts and feelings. It’s important to show empathy and understanding despite the circumstances. Their perspective is just as valid as yours, and they deserve the opportunity to express their emotions and reactions. As they share, try to really hear them, not just wait for your turn to speak. Responding with phrases like “I understand why you feel that way” or “Thank you for sharing that with me” can show that you value how they feel.</p>

Trust Issues

Trust is the foundation of any relationship. When trust issues arise, it can cause significant damage to the bond between two people. It’s crucial to address trust issues right away and work on building trust through open and honest communication, setting boundaries, and being consistent with your actions.

If trust has been broken due to a significant incident, such as infidelity or lying, rebuilding it may require professional help, such as couples therapy. Remember, trust isn’t rebuilt overnight and requires consistent effort and patience. Ultimately, it’s about showing that you are reliable and trustworthy through your actions.

<p>Treat your partner with respect even if you’re feeling angry or hurt. Remember, you once had a love for this person. It’s understandable that emotions may be running high, but try to keep in mind the good times and shared experiences that brought you together in the first place.</p><p>Use those memories as a reason to maintain dignity and decency during this difficult conversation. Avoid derogatory comments, shouting, or any form of emotional manipulation. Instead, express your feelings calmly and honestly, allowing them to do the same.</p>

Financial Problems

Money can be a sensitive topic in a relationship, and financial problems can cause significant strain on the bond between partners. Communicating openly about finances, setting budgets together, and working as a team to overcome any financial hurdles is crucial.

Discuss your financial goals, savings plans, and spending habits openly. It’s also a good idea to have regular financial check-ins where you both review your budget and financial goals. Remember, it’s not about blaming each other for financial issues but finding solutions. In the end, mutual respect and understanding are key to resolving financial problems.

<p>Don’t leave room for misunderstandings. Be clear about your intentions and what you want for the future. This means expressing your reasons for the breakup and your expectations moving forward in a straightforward and honest manner. Avoid using ambiguous phrases or giving false hope if you’re certain about your decision. It’s essential to communicate that this is a definitive ending and not a temporary break.</p>

Lack of Quality Time

In today’s fast-paced world, getting caught up in work and other responsibilities is easy, leaving little time for quality moments with your partner. It’s important to make time for each other, whether it’s a date night or simply spending an evening at home without distractions.

Quality time doesn’t necessarily mean planning extravagant dates or activities; it can be as simple as having a meal together, watching your favorite show, or even doing mundane chores together. It’s all about being present and giving your undivided attention to your partner. This not only strengthens your bond but also helps in understanding your partner better, thus leading to a healthier and happier relationship.

<p>After the conversation, it’s important to give your partner space. Allow them to process their emotions and come to terms with the breakup on their own. This means refraining from frequent check-ins or attempts to offer comfort, which may only prolong the pain or create confusion. It’s also advisable to respect their privacy on social media and avoid public discussions or posts about the breakup.</p>

Differences in Values and Beliefs

It’s common for partners to have different values and beliefs. These differences can cause conflicts if not addressed and respected. It’s essential to have open and respectful discussions about your values and beliefs, understand each other’s perspectives, and find common ground.

While disagreements can be challenging, they can also serve as opportunities to deepen your understanding and appreciation of each other. Recognize that your partner’s beliefs and values come from their unique experiences and perspectives. You don’t necessarily have to agree on everything, but acknowledging and respecting each other’s viewpoints is crucial. Remember, it’s about finding harmony, not uniformity, in your relationship.

<p><span>Does he make it challenging for you to maintain other close relationships? If he’s trying to cut you off from friends, family, or even hobbies you love, it’s a significant red flag. Relationships should enhance your life, not restrict it.</span></p>

Lack of Intimacy

Intimacy is more than just physical; it’s emotional and mental as well. A lack of intimacy in a relationship can be caused by various factors, such as stress, communication issues, or physical distance. It’s important to make an effort to connect with your partner on all levels and address any underlying issues that may be affecting your intimacy.

<p><span>Does he oscillate between being super attentive and then mysteriously distant? Inconsistency in behavior can be a significant warning sign. Relationships should offer a sense of stability, not leave you guessing about where you stand.</span></p>

Different Love Languages

We all have different ways of expressing love and feeling loved. It’s essential to understand your partner’s love language and communicate love in a way they appreciate. This can help strengthen the bond between partners and improve overall satisfaction in the relationship.

Understanding your partner’s love language isn’t just about expressing affection, it’s also about acknowledging their expressions of love. Maybe your partner feels love through acts of service like cooking a meal, while you express love through words of affirmation. It’s important to communicate clearly about these differences and make efforts to appreciate each other’s love languages. Doing this will improve your relationship and enhance the mutual respect and understanding between the two of you.

<p><span>People who care about you will want to integrate into your life. If he avoids meeting your friends or family, or worse, ridicules or belittles them, it’s an indicator that he doesn’t value the people who are important to you.</span></p>

Different Expectations

Different expectations can lead to conflict in a relationship. It’s important to discuss expectations openly and come to a compromise that works for both partners. Remember that no one is perfect, and having different views and goals is okay.

Understanding and respecting each individual’s unique expectations in a relationship can foster a sense of acceptance and mutual respect. Whether these expectations are about future goals, personal boundaries, or roles in the relationship, open dialogue can help identify differences and find a middle ground. It’s also essential to note that expectations may change over time, and being flexible and adaptable can contribute significantly to a healthy, evolving relationship.

<p><span>How he handles conflict and stress is telling. If he lashes out, breaks things, or becomes frighteningly angry, it’s a sign of deeper emotional issues. Remember, it’s not your job to “fix” him.</span></p>

Jealousy can stem from a lack of trust or insecurity within oneself. It’s important to address the root cause of jealousy rather than just the symptoms. Reassuring your partner and building their confidence can help combat feelings of jealousy.

Open communication is critical when dealing with jealousy. Express your feelings without accusing or blaming your partner, and allow them to do the same. If jealousy becomes a persistent issue despite your efforts, consider seeking help from a professional counselor or therapist. A neutral third party can provide perspective and tools to help address and overcome jealousy in the relationship.

<p>Breaking up in person is a sign of respect and kindness. It’s much more personal and allows you to have a real conversation about your feelings. This face-to-face interaction also provides a platform for open dialogue, where both parties can express their thoughts and emotions candidly. Despite the discomfort it might bring, it shows maturity and sincerity, indicating that you value the relationship you had and the person’s feelings.</p>

Relationships are complex and multifaceted, often presenting their own unique challenges. However, these common problems – different love languages, financial issues, lack of quality time, varying expectations, and jealousy – are not insurmountable. Open communication, understanding, compromise, and reassurance are key in navigating these challenges.

Remember, every relationship has its highs and lows, but with patience and mutual effort, most obstacles can be overcome, leading to a more robust and fulfilling relationship.

<p>If you’re a chronic procrastinator, this one is for you. Find out how to overcome procrastination once and for all!</p><ul> <li> <ul> <li><a href="https://womenblazingtrails.com/how-to-overcome-procrastination/">How to Overcome Procrastion in 7 Simple Steps</a></li> </ul> </li> </ul>

How to Overcome Procrastination in 7 Simple Steps

If you’re a chronic procrastinator, this one is for you. Find out how to overcome procrastination once and for all!

  • How to Overcome Procrastion in 7 Simple Steps

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15 Simple Steps on How to Overcome your Financial Problems.

Published by the national debt review center on may 25, 2021 may 25, 2021.

Last Updated on February 8, 2024 by The National Debt Review Center

Book your Free Consultation Below

If you do not know exactly how you’re going to pay the bills at the end of this month keep reading this. The lack of money kills ambition and creativity and if you are struggling financially you need to read to these steps so that you can overcome your financial struggles.

Financial problems are one of the most common sources of stress today. You and millions of others are going through this right now, and we can overcome your obstacles together.

We know how you feel, and we’re here today to let you know this is your chance to only move upwards. With some changes in perspective and a few positive actions, you will take control of your finances for good!

Solving your financial problems means overcoming your current state of mind and creating a plan to move forward.

The root of your financial problems is your mindset, and that’s something we can change today! By changing how you think about money, we can create real-life habits you can use every day. Even small steps add up to big changes!

Are you ready to make a change for good? Let’s get started.

Table of Contents

The first step is to realize your creator.

A lot of times we don’t want to admit that we need to change but as soon as we see our bank account hitting a number that we absolutely despise, what else are we going to do but think of God.

When we say realize your creator we are basically saying is that whenever you’re stuck in financial turmoil, you have to realize that there’s something greater out there asking you to make personal changes in your life. Now instead of destroying your health or taking a loved one or affecting you in any other way God is affecting your bank account so we can grasp your attention so it can force you to question yourself and actions which will lead to positive change.

What is basically asking is, do you have more faith in me than you do in money? you see a lot of people have more faith in money than they have in God, a lot of people think that their finances provide them with the security that they need in order to live their life successfully and lose sight of God in the process.

The universe will disrupt your pattern of life in order to change your way of thinking and a lot of times that happens through financial methods. Now, instead of seeing it as a punishment, you need to see it as a blessing. You need to receive Joy from this problem and start to look for a solution so that you can never be in this situation again.

Count your blessings.

Now that God got your attention you now have to realize your blessings. You have to count your blessings, you have to realize the things that you have instead of moping about the things that you don’t have. If you will account for every single blessing that you have it will multiply that’s the Law of the universe that’s the law of God.

The moment you start to count your blessings you will receive an unspeakable joy, you have this immeasurable feeling of success you, will have this level of gratitude that you never had before.

Begin giving to others.

Now that you realize what your blessings are. Give away, because there are people who are less fortunate than you. If you give yourself away, get lost in volunteering, get lost in giving and the blessings will return. Prove to the universe that you will always have more than enough and that you’re willing to pass it on, because the moment you start thinking like that, is the moment that the universe will start working in your favor and give you every blessing that you deserve.

Don’t panic.

Look my friends no one knows exactly what your financial circumstances may be except for you but the moment you begin panicking, the moment you become desperate, the moment you start worrying about the things you cannot change immediately, is a moment people will begin to realize. It is a moment where you will start to lose faith in yourself and you’ll start doing things that are not in your favor, you’ll start doing things that are not beneficial to you and those you interact with.

Review your finances.

This is an easy step to skip because the moment we look into our bank account, it’s repulsive it’s not something we want to face is something that might be hard to deal with and quite frankly we might even be embarrassed. What we are basically saying is, do whatever it takes to overcome your financial struggles.

If you have that deal with it, if you’ve been overspending deal with it, if you’ve been doing things that you know you shouldn’t be doing with money become more responsible and face your reality. Check your financial statements all the time make sure every single expenditure is helping you to live your Divine Purpose.

Deal with your debt.

You might be receiving bills in the mail or maybe you receive a periodical phone call from your creditors but if you keep on ignoring them eventually that’s going to affect your credit. And eventually, it’s going to affect the way you think and going to bother you so much that you can’t deal with it anymore.

Deal with your creditors assertively. You can make a simple phone call and lower the interest rate or maybe you can delay payment or maybe you could renegotiate terms. There’s always a way to deal with that, but you have to be strategic and you have to be brave before you take any action.

Forgive yourself.

When you forgive yourself, you have a chance to grow. Think of all the resentment and pain you carry with you about your past money habits. Maybe you’ve spent more money than you had at the time or you didn’t budget properly in the past.

You might even be repeating the same patterns with money that you saw during your childhood.

Recognize these feelings, and allow yourself to process them. If you’re feeling bold, write down all your painful memories about money.

How does money make you feel?

Why does it make you feel this way?

A lot of us carry heavy emotions about money. Whether we grew up with too little money or too much money, these feelings can burden us in adulthood.

Finally, you need to forgive yourself. Give yourself permission to feel these feelings, and then let them go.

These feelings and memories might still strike you from time to time. Commit to no longer allowing yourself to pass judgment on them. Face your feelings, and move on. You can’t change the past, but you can change tomorrow.

You will overcome your past feelings about money to make a future for yourself.

Change the way you talk about money.

How often do you catch yourself saying things like “I’m so broke” or “Making money is too hard?” These feelings are valid, but you’re writing yourself a negative narrative. Realize you’re the author of your own story. Do you want to be the victim of some corrupt system or the hero who saves the day?

The next time you catch yourself saying you’re so broke, replace it with something positive. Take a moment to reflect on what you are thankful for and the things you do have.

Change your story in the moment. Instead, say something like “ I’m thankful for my family and friends ” or “ I am making positive choices about money. ”

Once you start replacing these negative thoughts, you’ll no longer feel trapped by your finances.

What’s holding you back?

You need to keep negative mindsets away from your daily thoughts.

One of the most common mindsets that get in the way of saving is the “treat yourself” mindset. How often do you reward yourself with a “treat” during the week? Do you get fancy coffee on the way to work or a new pair of shoes after a long week?

While it’s great to practice self-care, buying material things are only a temporary fix.

If you’re suffering from the “treat yourself” mindset, find new ways to reward yourself. Thinking of impulse purchases as “treats” is a slippery slope, but one you can recover from.

Another mindset that’s especially common today is “faking it.” How often do you feel pressure to buy things because they’ll make you appear wealthy and successful?

Again, this comes down to value. Happiness is drawn from experiences and relationships. How can you weigh success on terms that matter to you?

These 4 mindsets above are the foundation for a successful financial future. If you want to overcome your financial problems, you need to be proactive with your mindset.

It’s okay to slip up every once in a while, but make it a priority to clear your mental space. It might take some time to develop a healthy relationship with money.

You might still feel pressure to look “successful” on social media. As long as you recognize that your mindset is key to a successful financial future, you’re on the right track!

Break up with your credit cards.

In this digital age, it’s common to swipe credit and debit cards with reckless abandon. Heck, things like Apple Pay and Android Pay make it even easier to spend money without even pulling out your wallet!

This kind of passive spending is certainly easy, but it also paves the way for bad money habits. Start breaking up with your credit cards by putting them away for at least 2 weeks.

Paying with cash makes it easy to see if you’re spending too much at the moment. You might find it’s harder to part with those few rands for coffee every day when you have to hand over the cash!

Purge your expenses.

Let’s face it: we all like to have nice things. We like to watch our fancy cable channels and we like to go out for nice dinners.

These expenses might be fine every once in a while, but they can quickly become a problem if they’re a regular expense.

Build an emergency fund.

Bad things happen. While we can’t predict tomorrow’s emergencies, we can prepare for them today.

Maybe you’ll face a medical emergency or you’ll lose your job. The best thing you can do is prepare for the unpredictable with an emergency fund. An emergency fund is money that you keep separate specifically for unexpected expenses.

Without an emergency fund, you’ll likely use credit or loans to pay for unexpected problems!

This is a dead-end street to more financial trouble! Before you start paying down your debt, you need a secure emergency fund. This will act as a much-needed safety net in case you’re ever stuck with an unexpected bill or expense!

Create a budget.

Creating a budget is key to overcoming your financial problems. It might sound easy and straightforward, but a lot of people struggle to create a budget they can stick to.

The key to creating a budget is to be realistic.

Is it really possible to spend less than R500 a month on food? Maybe, depending on your situation, but hold yourself only to a budget you think is possible. Be honest with yourself about how much you need to spend every month.

You’ll probably have to give up a few luxuries like lunches out or new clothes, but it will be worth the extra effort. You’ll likely realize more important things were worth it all along!

Increase your income.

Is there anything you can do to add to your current level of revenue? If there is, then it will help you cope with your financial problems. You can consider many ways to make some cash. Cutting down your expenses can only work to a reasonable extent without an increase in what you rake in.

Apply for debt counselling.

Complete the form below and one of our expects will get in touch with you.

Application by Consumer for Debt Review (FORM 16)

In terms of section 86(1) of the National Credit Act No. 34 of 2005

Step 1 of 5

Applicant details: if you are married in community of property, both spouses must apply jointly., main (1st) applicant.

  • Title * Mr Ms Mrs Dr Adv Prof
  • Identity Number *
  • Full Names & Surname *
  • Gender * Male Female
  • Ethnic Group * African White Asian Coloured
  • Marital Status * Single Married in Community of Property Married out of Community of Property Widowed Divorced
  • Mobile Number *
  • Email Address *
  • Province * Eastern Cape Western Cape Gauteng Limpopo Northern Cape Mpumalanga KwaZulu-Natal North West Free State
  • Postal Code *
  • Owner/Tenant: * Owner Tenant Family Home
  • Period at Address: * 1 – 5 Years 5 – 10 Years More than 10 Years
  • Number of dependents
  • Age of dependants Separate by commas
  • Next of Kin Full Names *
  • Next of Kin Contact Number *
  • Next of Kin Email Address *

2nd Applicant (SPOUSE)

Employment details.

  • Name of Employer / Company Name *
  • Employment Type * Permanent Self Employed Contract
  • Occupation *
  • Gross Salary (Before Deductions) *
  • Total Deductions *
  • Total Nett Income (After Deductions) *

HOUSEHOLD LIVING EXPENSES

  • Water & Electricity *
  • Groceries *
  • Petrol / Travel *
  • Telephone / Cellphone *
  • Bank Charges *
  • School Fees *
  • TOTAL HOUSEHOLD LIVING EXPENSES

DEBT OBLIGATIONS

  • Creditors Name
  • Upload ID Copy * Drop files here or Select files Max. file size: 1 GB.
  • Upload Payslip or Proof of Income * Drop files here or Select files Max. file size: 1 GB.
  • Upload Proof of Address * Drop files here or Select files Max. file size: 1 GB. Not older than 3 months. Utility bill, e.g. municipal water and lights account or property managing agent statement, Medical aid statement or policy document, etc
  • I undertake to comply with all requests from the debt counsellor to assist him/her to evaluate my state of indebtedness and to investigate the prospects for responsible debt restructuring. I consent to The National Debt Review Center obtaining my credit record from any/all registered credit bureaus and any other registers which may contain any of my credit information .
  • I undertake not to enter into any further credit agreements other than a consolidation agreement, with any credit provider until one of the following events have occurred: The Debt Counsellor rejects my application; or The Court determines that I am not over-indebted; or All my obligations under credit agreements as re-arranged are fulfilled.
  • I understand that I MUST NOT SIGN ANY DOCUMENTS whatsoever that I receive from any credit provider and shall make no promises, either verbally or in writing, to any of my credit providers.
  • I undertake not to hand over any of my assets to debt collectors unless I have first discussed the matter with The National Debt Review Center.
  • I confirm that the information contained in this document is to the best of my knowledge true and correct.
  • The debt remains my responsibility and that I must continue making payments to all my credit providers every month notwithstanding the fact that I have applied for debt review. Accounts from service providers and accounts in which legal action has commenced cannot form part of the debt review process and that I am personally responsible for paying them.
  • I must open a new banking account (savings) and I must arrange for my salary to be paid into the new account. I understand that if I fail to do so, the banks may deduct monies from my account and The National Debt Review Center will not be able to assist in obtaining a refund of monies taken.
  • I must provide proof of insurance on motor vehicle(s).
  • The initial repayment amount calculated by The National Debt Review Center. may not be sufficient for my credit providers and they may request a higher amount. The National Debt Review Center. may, therefore, contact me with a request for an increase in the repayment amount.
  • I understand and accept the Debt Counselling Fee Structure and understand that my first installment of the debt re-arrangement plan (or part thereof) will be payable to The National Debt Review Center. for services rendered.
  • I understand my debt review application must be finalized with a court order and I authorize The National Debt Review Center.to instruct an attorney to appear in court on my behalf and I accept full responsibility for the settlement of the legal fees as set out below.
  • I understand that if I default on any obligation in terms of the debt re-arrangement plan agreed upon with credit providers, such credit providers may terminate the debt review process and then enforce, by litigation or other judicial processes, any right or security they may have under my credit agreements. I also understand that The National Debt Review Center. may withdraw from my debt review in the event that I default on payments or fail to comply with any reasonable requests. I understand that I will then be required to pay the original installments and interest rates ; reduced installments and interest rates will be canceled and credit providers can then proceed with legal action against me that may result in judgment being taken and repossession of my assets.
  • I understand that a clearance certificate will only be issued after The National Debt Review Center. is satisfied that I have fulfilled all debt obligations under debt review.
  • I understand that there is a duty on me to inform The National Debt Review Center. of any changes in my residential address, telephone numbers, employer and income.
  • I indemnify all employees and nominees of The National Debt Review Center. against any claim that may be instituted against it or them arising from any act or omission by such person appointed by The National Debt Review Center. or its nominee in the lawful execution of the terms and conditions of this agreement entered into by myself, and confirm that The National Debt Review Center. shall not be liable for any damages suffered by me resulting from any act or omission of whatsoever nature, however arising. I hereby acknowledge that all lawful actions taken by The National Debt Review Center.under its powers under this agreement are tacitly ratified by me, and I will be bound by such agreements as principal debtor.
  • I/We the Consumer(s) authorise my/our debt counsellor and it’s staff and/or agents to process, store and keep my/our personal information that has bearing to my/our debt review and whilst I/we do explicitly give my/our consent to our debt counsellor to do so, I/we understand and accept that my/our debt counsellor is obliged to act within the parameters of the Protection of Personal information Act (“POPI”).
  •  An Application Fee of R50.00 & Administration Fee of R300 per debt counselling consultation.
  •  A Restructuring Fee of an amount equivalent to the first installment of the debt re-arrangement plan to a maximum amount of R8,000 (excl VAT) per single application. Should you wish to withdraw from the debt review process, there will be a cancellation fee as set out in the NCR guidelines payable by you.
  • A Restructuring Fee of an amount equivalent to the first installment of the debt re-arrangement plan to a maximum amount of R9,000 (excl VAT) per joint application. Should you wish to withdraw from the debt review process, there will be a cancellation fee as set out in the NCR fee guidelines payable by you.
  • A monthly Aftercare Fee of 5% (excl VAT) of the monthly installment of the debt re-arrangement plan up to a maximum of R450 (excl VAT) payable in every month after month 2 in which aftercare services are rendered.
  • To the Payment Distribution Agency (PDA): A monthly Payment Distribution Fee for each amount distributed in respect of each credit agreement included in the consumer’s debt re-arrangement plan.
  • To Attorneys firm: A legal fee of an amount equivalent to the first installment to a maximum of R8,000 (excl VAT) per single application and R9 000 (excl VAT) per joint application to start the process to obtain a court order forcing your credit providers to abide by the terms of the debt re-arrangement plan. The deposit is payable in the 2nd month of the application.

I hereby appoint Sibabalwe Dakana, NCRDC 3106 of The National Debt Review Center (NDRC) which has its principal place of business at 10 Newton Street, Suite 1, Adel Centre,First Floor, Newton Park, Port Elizabeth , Eastern Cape, South Africa 6055 (“the Debt Counsellor”), to be my true and lawful agent and I expressly grant the Debt Counsellor full power and authority to, on my behalf:

  • Cancel any debit orders; and/or
  • Stop payments of any debit orders & investigate any possible reckless lending againsty my accounts,

In order to facilitate the debt review in terms of section 86 of the National Credit Act, 34 of 2005

NOW THEREFORE I hereby nominate, constitute and appoint any representative of DC Credit Protect (Pty) Ltd, an authorised financial services provider, FSP No. 51550. (hereinafter referred to “DC Credit Protect”) to be my agent with full power and authority to act on my behalf to:

  • Obtain a replacement copy of any and all active credit life insurance policies , including the policy schedule, benefits summary and all other documents relating to the credit life insurance policies in my name, held at any credit provider or insurer;
  • Substitute and/or cancel any and all credit life insurance policies in my name, with another credit life insurance policy nominated by me to DC Credit Protect, as permitted by section 106(4)(a), read with section 106(6) and regulation 7 of the credit life insurance regulations; and
  • Do or perform any additional act not specifically listed above, in order to give effect to my directions contained herein.
  • Signed at(Place): *
  • Date * MM slash DD slash YYYY
  • Name of Main Applicant: *
  • Signature of Main Applicant: *
  • Name of 2nd Applicant:
  • Signature of 2nd Applicant:
  • The terms and conditions as set out hereunder are governed by the National Credit Act and Regulations (the “NCA) and National Credit Regulator (NCR). The NCR has the authority to issue NCR Guidelines which can be amended from time to time. The Consumer indemnifies the Debt Counsellor (its directors, shareholders, employees and consultants) against any damages of whatsoever nature and howsoever arising from changes in the said NCA or NCR Guidelines from time to time.
  • This debt review application is in terms of the NCA and the Debt Counsellor is fulfilling the statuary duty as an unbiased party between the consumer and the credit providers;
  • The Debt Counsellor is entitled to suspend the debt counselling services , as per the prescribed form set out in the NCR Withdrawal Guidelines, if the Consumer fails to:3.1.  Comply with the reasonable requests of the Debt Counsellor;3.2.  Pay the prescribed fees in terms of the NCR Debt Counselling Fee Guidelines.
  • Upon the suspension of debt counselling services by the Debt Counsellor pursuant to the provisions of clause 3 the Consumer hereby acknowledges that he/she understands that4.1. There is a risk of credit providers terminating the debt counselling process ;4.2. He/she may not incur further debt; 4.3. He/she cannot withdraw from the debt counselling process after a Form 17.2 (declaration of over-indebtedness) has been issued; 4.4. Transferring to an alternative debt counsellor is subject to the payment of all outstanding fees of the current Debt Counsellor.
  • In the event of the debt counselling services being suspended by the Debt Counsellor in terms of paragraph 3, the consumer hereby indemnifies and holds the Debt Counsellor (its directors, shareholders, employees and consultants) harmless against:5.1. Termination by credit providers; 5.2. All claims, losses, costs and expenses incurred or suffered by the Consumer arising from any claim/s instituted by any third party in relation to or in connection with the debt counselling process.
  • A consumer cannot withdraw from the Debt Counselling process after the Form 16 (application form) has been signed. The debt counsellor can only reject the application should it be found that the consumer is NOT over-indebted. Proof thereof will have to be submitted to the NCR in order to clear the debt counselling listing from the consumer’s credit profile as set out in NCR Withdrawal Guideline.
  • The debt counsellor is obligated to refer the debt re-arrangement proposal to a Magistrate’s Court or to the Tribunal for a court order subject to payment of legal fees.
  • A court order can be rescinded if the consumer is no longer over-indebted or if all debts have been settled in full and the Debt Counsellor has issued a clearance certificate. An estimate of costs will be provided to the consumer by the Debt Counsellor upon request of a rescission application.
  • Please Sign *
  • Comments This field is for validation purposes and should be left unchanged.

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How to Overcome Financial Problems in the Family

How to Overcome Financial Problems in the Family

financialtreat – will explain Information on How to Overcome Financial Problems in the Family which you will get in the following article. let’s look at this article carefully!

There is a lot we know in carrying out this life, of course, there are many unexpected things that happen, one of which is financial problems that are often experienced by many people. Talking about finances is a challenge in life. then there is nothing wrong with listening to How to Overcome Financial Problems in the Family so as not to be entangled in debt.

Many people who are entangled in debt I have encountered due to an excessive lifestyle so that they are unable to control their finances. Not to mention that there are some human needs that are getting higher such as installments and bills that must be paid.

How to Overcome Financial Problems in the Family In The Conducion To The Covid 19 Pandemic

Like the example above. If you are too extravagant and entangled in debt, then you can’t afford to pay for your child’s education. In fact, children’s education is very important for us to pay attention to, here’s how to overcome financial problems in the family so as not to be entangled by debts.

In order not to be entangled in debt, you must manage your finances well. In financial management, then you must have a plan with clear goals, among which are:

1.  Financial Problems in the Family: Make a List of Income and Expenses Every Month

One of the solutions to the right household financial problems is to compile a list of income and expenses every month. You can record all expenses, such as transportation, groceries, houses, and others.

The important thing to pay attention to is to know the amount of your expenses every month. Because, your expenses must be lower than the income earned. If the income is higher than the expenditure, then you will not be entangled in debt.

2.   Have an Emergency Fund

You may experience unexpected events, one of which is losing your job. That way, you have to immediately look for a job application. If you experience this, don’t let you sell all the assets you have. Selling assets is not the main choice you should make, because it is supposed to prepare an emergency fund.

Not having an emergency fund is one of the current financial problems. With an emergency fund, you don’t need to sell all existing assets. So, you can prepare an emergency fund so that you don’t get entangled in debt.

3.  Financial Problems in the Family: Develop a Long-Term Financial Plan

You have to draw up a financial plan for the long term, such as the child’s education, pension fund to inheritance. If drawing up a financial plan, then your life will be better and be on track.

In addition, you can also create a timeline and problems that will be encountered in the future. That way, you won’t have any financial problems.

4.   Reduce a Consumptive Lifestyle

If you are an extravagant person, then immediately eliminate the habit. It is time for you to distinguish between wants and needs. Don’t let you spend a lot of money on unimportant things.

A consumptive lifestyle will have a huge impact on your financial and household problems. The solution is to refrain from buying goods that are not as needed.

5.  Financial Problems in the Family: Invest

So that the money you have is not just wasted, you can try to invest. Currently, there are already many investment instruments with promising profits. For those of you who are still beginners, you can choose gold investment. This is because the value is stable, then the profit is also quite large. In fact, you can also invest in mutual funds starting from only IDR 100,000.

6.   Reduce Credit Card Usage

The use of credit cards is the cause of financial problems that occur today. You can reduce your use of credit cards, as they can bring losses. If you want to shop or buy something, you can use cash or a debit card to limit the amount of expenses.

7.   Looking for Additional Income Alternatives

The last way to overcome financial problems is to look for alternatives to additional income. You can take advantage of online shopping sites or e-Commerce to sell various products.

8.   Create a realistic budget

Make sure your budget is realistic and well done. Don’t make too little budget so that you have to save so much and can’t enjoy life. Also, don’t set a budget that is too loose to make your life extravagant.

9.   Set Aside Money for the Holidays

Leave a little money for entertainment or fun. Don’t do much so as not to be too extravagant. You can use the money to have dinner together, watch a movie, or buy something for the family. Let’s just say that this money is a reward for the hard work of you and your partner.

10. Financial meetings

Have a meeting or meetings with your partner to talk about financial issues. This can be done every week or month. Although the name is a meeting, but do it with a happy atmosphere. and don’t take it too seriously.

11. Work together to manage finances

Make sure you and your partner work together to manage your finances. Don’t be too domineering or even passive when it comes to expenses or financial arrangements. It may be awkward at first, but if you get used to it, you will get the benefits of managing finances as a team with your partner.

12. Save money in using electricity

In a house, the use of electricity greatly affects expenses. For that, try to always save money in using electricity. Apply several ways to save electricity.

Such as using enough lights and turning off electronic devices that are not used. This way of managing household finances will also help you to live a more minimalist life.

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13. Good at Sorting Between Wants and Needs

One way to manage household monthly finances is to be good at distinguishing between needs and wants. Of course every human being has a desire and desire to have something. But, if it is not so important, then it is better to hold it. For that, you have to know which ones are needs or just desires.

14. Making Insurance for the Whole Family

The next way to manage household finances is to make insurance for your family members. Indeed, everyone did not expect anything bad to happen. However, insurance will be very helpful for you later. For example, health insurance or car accident insurance.

Managing Finances during a Pandemic

The COVID-19 pandemic has disrupted economies around the world. Many people have lost their jobs and income, and then there are also those who have experienced pay cuts. Seeing this, of course, you have to manage your finances to remain stable. Here’s how to manage your finances in the midst of the COVID-19 pandemic:

1.      Don’t Buy Goods with an Installment System

If you want to buy a new smartphone or laptop, then undo the intention first. Although there is an installment system, you should save money and save money for more important needs. You can postpone those wishes until the pandemic is over. In addition, save your credit card so that it is not used to shop for unimportant necessities.

2.      Prioritize Life and Health Insurance

As is known, life insurance will save and cover family members if you pass away. Make sure you already have health insurance with a minimum coverage amount of IDR 100 million. If you get health insurance from the company, then it will not hurt to have other insurance.

3.      Save money in using kuangan.

While working at home, of course, you still make transactions online. For example, shopping online, buying daily necessities, ordering food via online motorcycle taxis to paying internet bills.

4.      Open

The first thing to do to avoid finances is to be open. Whether a couple is both looking for money or just one of them is making money, there should be nothing to hide about spending. Always discuss all decisions related to finances, such as expenses, income, savings, and others.

5.      Make a deal

Before spending your money, it is worthwhile to make mutually agreed rules. For example, determining what percentage should be saved, how much budget is used to pay bills, and others.

In fact, such transactions can cost you money. Because, you don’t manage it properly. Therefore, you must be wise when transacting, especially managing finances. For those of you who want their financial condition to be safe, you must manage it wisely. In addition, pay all bills and installments in a timely manner. It aims to avoid interest expense.

Thus the review of How to Overcome Financial Problems in the Family. For those of you who want the condition of the dinansial in your family to be safe, try from now on to be able to explain how to deal with it, and manage your finances properly.

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Judge fines Donald Trump more than $350 million, bars him from running businesses in N.Y. for three years

The judge who presided over a civil business fraud trial against Donald Trump on Friday ordered the former president, his sons, business associates and company to pay more than $350 million in damages and temporarily limited their ability to do business in New York.

Judge Arthur Engoron ordered the former president and the Trump Organization to pay over $354 million in damages , and barred Trump “from serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years,” including his namesake company.

New York Attorney General Letitia James, whose office brought the case, said that with pre-judgment interest, the judgment totals over $450 million, an amount “which will continue to increase every single day” until the judgment is paid.

“Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud. Because no matter how big, rich, or powerful you think you are, no one is above the law,” James said in a statement, calling the ruling “a tremendous victory for this state, this nation, and for everyone who believes that we all must play by the same rules — even former presidents.”

The ruling also bars Trump and his company from applying for any bank loans for three years.

In his first public remarks after the ruling, Trump said, “We’ll appeal and we’ll be successful.”

Speaking to reporters at Mar-a-Lago on Friday night, Trump bashed the ruling as “a fine of 350 million for a doing a perfect job.” He also repeated previous attacks by calling the judge “crooked” and the attorney general “corrupt.”

Trump did not take any questions from reporters after speaking for about six minutes.

The judge’s decision is a potential blow to both Trump’s finances and persona — having built his brand on being a successful businessman that he leveraged in his first run for president. Trump is currently running for the White House for a third time. This case is just one of many he is currently facing, including four separate pending criminal trials, the first of which is scheduled to begin on March 25.

Engoron also ordered the continued “appointment of an Independent Monitor” and the “the installation of an Independent Director of Compliance” for the company.

In posts on his social media platform Truth Social, Trump called the ruling “an illegal, unAmerican judgment against me, my family, and my tremendous business.”

“This ‘decision’ is a complete and total sham,” he wrote.

During the trial, Trump and executives at his company, including his sons Donald Trump Jr. and Eric Trump, attempted to blame exaggerated financial statements that were the heart of New York Attorney General Letitia James’ fraud case on the accountants who compiled them. Engoron disagreed.

“There is overwhelming evidence from both interested and non-interested witnesses, corroborated by documentary evidence, that the buck for being truthful in the supporting data valuations stopped with the Trump Organization, not the accountants,” he wrote.

In explaining the need for a monitor, the judge cited the lack of remorse by Trump and his executives after the fraud was discovered.

“Their complete lack of contrition and remorse borders on pathological. They are accused only of inflating asset values to make more money. The documents prove this over and over again. This is a venial sin, not a mortal sin. Defendants did not commit murder or arson. They did not rob a bank at gunpoint. Donald Trump is not Bernard Madoff. Yet, defendants are incapable of admitting the error of their ways,” Engoron wrote.

“Defendants’ refusal to admit error — indeed, to continue it, according to the Independent Monitor — constrains this Court to conclude that they will engage in it going forward unless judicially restrained,” he added.

The ruling also bars the Trump sons — who’ve been running the company since their father went to the White House — “from serving as an officer or director of any New York corporation or other legal entity in New York for a period of two years.” Both were fined over $4 million, plus interest, for their roles in the scheme.

Donald Trump Jr. posted on the social media site X that “We’ve reached the point where your political beliefs combined with what venue your case is heard are the primary determinants of the outcome; not the facts of the case! It’s truly sad what’s happened to our country.”

In a statement, Eric Trump called the judge “a cruel man.”

“He knows that every single witness testified to that fact that I had absolutely NOTHING to do with this case (as INSANE as the case truly is),” Eric Trump said.

He also attacked the ruling as “political vengeance by a judge out to get my father.”

 Trump attorney Alina Habba called the verdict “a manifest injustice — plain and simple.”

“Given the grave stakes, we trust that the Appellate Division will overturn this egregious verdict and end this relentless persecution against my clients,” she said in a statement.

A spokesperson for Trump Organization called the ruling “a gross miscarriage of justice. The Trump Organization has never missed any loan payment or been in default on any loan.”

High legal costs

An appeal in the case would likely take years, but Trump could have to post a bond for the full amount if he does so.

Read more: Trump faces about $400 million in legal penalties. Can he afford it?

The judgment is the second this year against Trump after he was hit last month with an $83.3 million verdict in writer E. Jean Carroll’s defamation case against him. Trump has said he plans to appeal that verdict as well, but would have to post a bond for that amount as well.

James had been seeking $370 million from Trump, his company and its top executives, alleging “repeated and persistent fraud ” that included falsifying business records and financial statements. James had argued those financial statements were at times exaggerated by as much as $2.2 billion.

James contended the defendants used the inflated financial statements to obtain bank loans and insurance policies at rates he otherwise wouldn’t have been entitled to and “reaped hundreds of millions of dollars in ill-gotten gains.”

Trump had maintained his financial statements were conservative, and has called the AG’s allegations politically motivated and a “fraud on me.”

“This is a case that should have never been brought, and I think we should be entitled to damages,” Trump told reporters when he attended closing arguments in the case on Jan. 11.

Trump testimony knocked

The monthslong civil trial included testimony from Trump and his oldest children . The former president was combative in his day on the stand, blasting James as a “hack” and calling the judge “extremely hostile.”

Trump repeatedly complained about Engoron before and throughout the trial, and the judge slapped him with a partial gag order after he started blasting the judge’s law clerk as well. Trump’s complaints led to a flood of death threats against the clerk, as well as Engoron, court officials said, and Trump was fined $15,000 for twice violating the order.

Among the examples cited as fraud by the attorney general’s office during the trial was Trump valuing his triplex home in Trump Tower in New York City at three times its actual size and value, as well as including a brand value to increase the valuation of his golf courses on the financial statements, which explicitly said brand values were not included.

Another example pointed to by the attorney general clearly got under his skin — a dispute over the value of Mar-a-Lago, his social club and residence in Florida. Trump’s financial statements from 2011 to 2021 valued Mar-a-Lago at $426 million to $612 million, while the Palm Beach County assessor appraised the property’s market value to be $18 million to $27 million during the same time frame. Trump had also fraudulently puffed up the value of the property by saying it was a private residence, despite having signed an agreement that it could only be used as a social club to lower his tax burden.

Trump maintained during the trial the property was worth much, much more .

“The judge had it at $18 million, and it is worth, say, I say from 50 to 100 times more than that. So I don’t know how you got those numbers,” Trump testified, adding later that he thinks it’s actually worth “between a billion and a billion five.”

In his ruling Friday, Engoron said he didn’t find Trump to be a credible witness.

“Overall, Donald Trump rarely responded to the questions asked, and he frequently interjected long, irrelevant speeches on issues far beyond the scope of the trial. His refusal to answer the questions directly, or in some cases, at all, severely compromised his credibility,” the judge wrote.

Michael Cohen testimony ‘credible’

James’ investigation into the former president’s business began in 2019 as a result of congressional testimony from his former personal lawyer Michael Cohen , who told the House Oversight Committee that Trump would improperly expand and shrink values to fit whatever his business needs were.

Cohen testified during the trial about his role in the scheme, and said while Trump didn’t explicitly tell him and then-Chief Financial Officer Allen Weisselberg to inflate the numbers in the financial statement, he was like a “mob boss” who tells you what he wants without directly telling you.

Trump claimed Cohen’s testimony exonerated him while also painting him as an untrustworthy liar because he admitted having previously lied under oath.

In his ruling, Engoron called Cohen an “important witness” and said he found his testimony “credible.” “This factfinder does not believe that pleading guilty to perjury means that you can never tell the truth. Michael Cohen told the truth,” the judge wrote.

Former CFO ‘evasive’

Engoron was less forgiving about former Trump CFO Weisselberg, who previously pleaded guilty to carrying out tax fraud at the company.

Weisselberg’s “testimony in this trial was intentionally evasive, with large gaps of ‘I don’t remember.’”

“There is overwhelming evidence that Allen Weisselberg intentionally falsified hundreds of business records during his tenure” at the company, the judge wrote. “Weisselberg understood that his assignment from Donald Trump was to have his reported assets increase every year irrespective of their actual values. The examples of Weisselberg’s intent to falsify business records are too numerous to itemize,” he added.

The judge permanently barred Weisselberg “from serving in the financial control function of any New York corporation or similar business entity operating in New York State,” and ordered him to pay the $1 million he’s already received from his $2 million separation agreement from the company as “ill-gotten gains.”

AG initially sought less

James filed her suit seeking $250 million in damages from Trump in 2022, and the judge appointed a monitor to oversee the company’s finances that November.

In a summary judgment  ruling the week before the trial started, Engoron found Trump and his executives had repeatedly engaged in fraud. The “documents here clearly contain fraudulent valuations that defendants used in business, satisfying [the attorney general’s] burden to establish liability as a matter of law against defendants,” the judge wrote, while denying Trump’s bid to dismiss the case.

Engoron summarized the Trump defense as “the documents do not say what they say; that there is no such thing as ‘objective’ value; and that, essentially, the Court should not believe its own eyes.”

The order, which Trump appealed, held that Trump’s business certificates in New York should be canceled, which could have wreaked havoc on Trump’s company and forced the sell-off of some assets.

Engoron backed off of that decision in his ruling Friday, saying the addition of the “two-tiered oversight” of the monitor and the compliance director makes that move “no longer necessary.”

Trump had complained about the summary judgment ruling while he was on the witness stand. “He said I was a fraud before he knew anything about me, nothing about me,” Trump said. “It’s a terrible thing you did.”

how to overcome family financial problems

Adam Reiss is a reporter and producer for NBC and MSNBC.

how to overcome family financial problems

Dareh Gregorian is a politics reporter for NBC News.

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hochul gestures while speaking at podium

New York governor seeks to quell business owners’ fears after Trump ruling

Kathy Hochul says law-abiding businesspeople have ‘nothing to worry about’ after question on state’s commercial climate

The New York governor has told business owners in her state that there is “nothing to worry about” after Donald Trump was fined $355m and temporarily banned from engaging in commerce in the state when he lost his civil fraud trial on Friday.

In an interview on the New York radio show the Cats Roundtable with the supermarket billionaire John Catsimatidis, Kathy Hochul sought to quell fears in some quarters that the penalties handed to Trump for engaging in fraudulent business practices could chill the state’s commercial climate.

Asked if businesspeople should be worried that if prosecutors could “do that to the former president, they can do that to anybody”, Hochul said: “Law-abiding and rule-following New Yorkers who are businesspeople have nothing to worry about because they’re very different than Donald Trump and his behavior.”

She added that the fraud case against Trump resulted from “really an extraordinary, unusual circumstance”.

Hochul’s comments were directed at some New York business leaders who said they were concerned that the attorney general Letitia James ’s case against Trump could deter businesses and investment from coming to the state. Hochul noted James’s case demonstrated how Trump and some allies obtained favorable bank loans and insurance rates with inflated real estate values.

The governor said most New York business owners were “honest people, and they’re not trying to hide their assets and they’re following the rules”.

Hochul said most business owners would not merit state intervention.

“This judge determined that Donald Trump did not follow the rules,” Hochul added. “He was prosecuted and truly, the governor of the state of New York does not have a say in the size of a fine, and we want to make sure that we don’t have that level of interference.”

Trump, who denied wrongdoing in the case and maintained there were no victims, now has 30 days to come up with a non-recoverable $35m to secure a bond – a third-party guarantee – against his real estate holdings to show that he can pay the full fine if his appeals fail.

Alternatively, he could put the $355m into an escrow account but would get the money back if he wins on appeal.

Either way, the ruling is a blow to the developer-politician whose sense of self is tied to financial success. And James has said Trump is actually in line to pay more than $463m when interest is taken into account.

In September, Trump’s former lawyer Christopher Kise argued in court that the decision against the ex-president would cause “irreparable impact on numerous companies”. It would also threaten 1,000 employees within the Trump empire, Kise maintained.

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But the judge, Arthur Engoron, who found the former president liable for fraud and assessed the fine and three-year disqualification from doing business in New York, dropped an earlier ruling to dissolve all the companies that Trump owns in the state that could have led to a liquidation.

“This is a venial sin, not a mortal sin,” Engoron wrote in a 92-page ruling that allowed the Trump businesses to keep operating and appointed two overseers to monitor “major activities that could lead to fraud”.

Engoron said he could renew his call for “restructuring and potential dissolution” based on “substantial evidence”.

Trump has lashed out at the ruling, vowing to appeal and calling James and Engoron “corrupt”.

But James said on Friday: “This long-running fraud was intentional, egregious, illegal.” She added: “There cannot be different rules for different people in this country, and former presidents are no exception.”

This article was amended on 18 February 2024 to correct a misspelling. An earlier version referred to “venal” rather than “venial” sin.

  • Donald Trump
  • US politics
  • Kathy Hochul

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