STOP! Take a look around you.

The debt. The stress. The mess. The fear. The hopelessness.
Own it. This is your life right now.
The choices that you’ve made up to this very moment have created this. I know what that feels like because I was you. I wasted money and spent more than I made.  It felt hopeless. There were times I lie awake at night worrying about how I was going to pay all my bills. It felt like I was drowning in the bills and that there was no light at the end of the tunnel.Will I ever recover from this financial disaster?  It’s an awful feeling, right?

Take a look at the world around you. We have constant marketing campaigns slamming debt and credit cards in our face 24/7. Telling us that debt is OK.
We have society telling us that talking about money is rude. If you are like me, you likely have parents who never taught you how to manage your money. We go to school and graduate having no idea how to make a budget. We get job training but no one ever teaches us how to manage our salary.
I know what it feels like to live paycheck to paycheck. Too scared to look at the bank account. I know you do too. But that ends today. You’re taking control of it right now. And it will never control you again.
Being afraid to check your bank account is the adult version of being afraid to check your grades

Identify the Problem

The first step is to identify what is causing the financial disaster. Financial problems are usually a symptom of a bigger issue. To come up with solutions that work, take the time to identify the real source of your financial troubles. Here are some common things to think about: 
  • Unemployment or lower than usual income
  • Unexpected illness or accident 
  • Living beyond your means


Own your Mess

Sit down, grab a notebook, and write down every single debt that you have. (Or use this debt FORM) This includes money that you owe a relative or a friend, credit cards, medical 

debt, bills you need to catch up on, and late fees at the library. EVERYTHING.


List the following for each debt:
  • The total amount of the debt.
  • The payment date.
  • If you’re behind and how far.                                                                               
  • The interest rate.
  • The monthly payment.
What is the total amount of your debt?
Don’t get overwhelmed, almost everyone has debt – but it’s important to understand where interest rates come into play and how much extra it can cost you if you’re only making minimum payments each month. Start taking steps to recover from financial disaster.

Cut your Spending

If you want to succeed at turning your financial life around, you have to be spending less than you earn. There’s no way around it. The only way to save money is to spend less than you earn and save the difference.
Yes, this step is undoubtedly difficult if you’re not earning a healthy income. Yes, this step is going to force you to make some choices that you might not like making. It’s really hard to give up something cool today in order to have money in the bank tomorrow.
Start managing your money, or your money will manage you.

Create a Budget

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 important to you. In this case, you’ll spend your money in a way that helps solve your financial problem.

Spend less than you earn

Achieving that is trickier than you might think. It requires being mindful of every purchase. Being willing to question every rand that you spend.
The entire world of personal finance revolves around a “spend less than you earn” core. You must figure out how to make it work in your life in order to build wealth and financial freedom. If you learn nothing else about personal finance, keep that one idea firmly in your mind.
Overcoming financial problems and difficulties isn’t easy. Follow these steps to recover from financial disaster.  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.

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