If you find yourself trying to work on your budgeting and money management skills yet keep coming up short at the end of every month, it may be time for a mental money makeover to change the way that you think about your finances. Freedom Debt Relief advises that you take tips from financial guru Alaya Linton, author of money-management blog “Hope and Cents.” Though Linton is now at the top of her financial game, she wasn’t always in such good shape; according to an interview with AOL.com, at Linton’s rock bottom, she was over $74,000 in debt. Linton knew that she needed to change her money mindset, or she would be trapped in an endless cycle of interest payments. She ended up doing the impossible- paying off her entire outstanding balance in just two years. Freedom Debt Relief has collected some of Linton’s best tips for a money management makeover that you can use to shape up your finances in the coming year!
Resist the urge to make your situation worse. Freedom Debt Relief has found that once one’s financial situation gets to a certain point, they have a tendency to believe that there’s no way out from the mess they’ve created. Linton shared the same negative mindset; instead of searching for ways to begin digging herself out of debt, telling herself that short of finding a winning lottery ticket, there was no way for her to ever be out of debt. This mindset encouraged her to make her situation worse by continuing to pile on credit purchases instead of addressing the root causes that got her into her situation in the first place. If you are carrying on this negative line of thinking, shift your focus from the amount of debt you’re in to how you can cut back- even small changes can have big results, as showcased by Linton’s success story.
Live within your means. The first step to changing your money mindset is to take a serious look at how you’ve been living and thinking about where you can afford to cut back. When you’re looking to lose weight, you must run a calorie deficit- when you’re trying to get out of debt, you need to be saving more than you spend so you can put the excess towards your debt payments. Some people, like Linton, choose to prioritize their financial woes and undergo extreme cuts to their lifestyle to get out of debt quickly- this can include selling a car, moving back in with parents or finding roommates, and giving up take-out and restaurants to save money and cook at home. However, Freedom Debt Relief wants consumers to realize that even without making massive changes, they can still get out of debt with the help of a good budget. Sit down one night and look over all of the purchases you’ve made in the last three to six months- then, identify spending trends and note where you can afford to save. Whether it’s giving up your daily latte to make coffee at home or canceling an expensive cable package, learning to live within your means is the first step to an all-new money mindset.
Never give up. No matter how bad your financial situation is, the most important lesson to learn from Linton’s struggle is that there is always hope. At her worst, Linton was forced to make large purchases on her credit cards and return them the next day, just so she would have credits on her outstanding balances and wouldn’t go further into debt. Today, Freedom Debt Relief is happy to report that Linton is debt-free, a situation that she never would have dreamed herself to be in just two years ago. No matter how bad your current money situation is, don’t give up fighting for better financial health.
If you find yourself continually having trouble changing your money mindset, seeing a financial adviser may be the solution for you. Don’t be afraid to ask for assistance creating a budget- experts at debt relief services are there to help you live your best financial future. As the new year approaches, leave financial problems in the past- and welcome in a bright new money mindset in 2018!