Being Financially Responsible in Debt

Somehow, we’ve become a culture of debt. It is a sad thing to think about but there is no denying that we’re encouraged to seek more than we can afford and put into impossible financial situations where we’re left feeling there is no other way. Yet, debt and financial worry is a significant and well-established cause of anxiety and depression. I know from personal experience that money worries can leave you awake at night and unable to focus during the day. It is a horrible feeling, but it isn’t something you have to let define you. Something I’ve learned on my journey to happiness is that things are less scary if you understand and accept them. Money is the same, it’s true that I have debt and knowing but not accumulating more whilst working towards (even slowly) ending it is both financially responsible and personally reassuring.

Be Honest with Yourself

The truth is that whatever your situation, you’ll find it difficult without first accepting it. This can be daunting but in doing so it gives you a clear picture. Of course, if you genuinely can’t; if your mental health can’t take it – this is understandable. I get it.

If that is the case, then focus on what you can, pick a debt and focus on that alone. One thing is less daunting than many after all. Once you have conquered that, pick and focus on another.

Essentially, this is the same as what you would do with the full picture, anyway. Identify and break down each debt one at a time. It is less convenient to do this without full context but being honest also means about what you can handle. Getting overwhelmed wont help move things along.

Live Within Your Means

I don’t like this saying as I think it fails a fair degree of context. It can also be dismissive of the fact that your income might not be enough to live. I’ve been there too, though rarely not often.

No, the point I’m trying to make is that if you can’t afford to make big, extravagant purchases; then don’t. The latest tech, fashions and treats can wait. Focus on your living needs first, then your debts and if you have anything left then that is there for the fancy extras. If you need to resort to credit, then you’re overstepping your means.

Save for Emergencies

Cars need maintenance, appliances stop working, jobs are sometimes lost, and things occasionally need replacing. That’s life, but these situations are only scary if you aren’t prepared. Sure, saving is sometimes a luxury we don’t have but if you are in a position to; it takes a lot of the stress out of those unexpected surprises.

Shop Around

Time is valuable. Sometimes, time saved is more important than financial saving itself. However, spending time on getting the best prices; be it everyday goods, insurance, a car or energy bills can lead to massive savings in the long run. The extra time and incremental savings could well be the difference between having disposable income and not.

Stop Impulse Buying

I’ve seen enough people in serious debt in my life to know that the heavier the debt, the more likely people impulse buy. This makes sense. When you believe that you can’t escape your debt anyway, you’re more likely to indulge rather than feel like you have nothing and are getting nowhere. It’s a logical fallacy but it is understandable and very human.

That said, not falling into that pattern will help. Even if it doesn’t clear the debt straight away, it will increase your savings which will add up and help eventually or could stop an emergency sending you further into debt. In the end, you’re not denying yourself anything; you’re just weathering the storm.