30 Jul
2010

It happens to everyone some time: you feel as though you are making the right decisions, but you just can’t set aside enough money for savings or for paying down your loans. If you feel like your finances are hopeless, here’s what to do:

1) Take a look at your finances. Are they really that bad? Do you have some savings? How much do you earn? What are your assets? What hope is there in your career? What are you worried about? You may find that your finances are in better shape than you thought. Even if they are not, at least you know where you are starting from.

2) Consider what resources you have to change things around. Work with pen and paper, creating a list of all the reasons why your situation is not as hopeless as you might think. List all the good qualities and skills that might translate to a better income later on or think of all the untapped ideas that might make you cash. Then, make a list of everything in your life you are grateful for. If you still feel hopeless, volunteer an afternoon at a soup kitchen. Often, feeling financially hopeless is about attitude. As long as you see that things are not so bad and as long as you see that things can change, you will not feel so hopeless and you will be able to take steps to improve your financial situation.

3) Focus on one small goal at a time. Rather than trying to launch your career, save towards retirement, pay down your student loans, and buy your first home, try to take things one step at a time. Focus on one goal – such as improving your credit score or paying down your payday loans. Once that goal is accomplished, move on to the second goal.