The next key to managing your debt is not very commonly heard. The financial tip I would give you would be learning to say no. This is extremely more difficult for some than for others. If you followed the first step and did not overspend and put money in savings and you’ve been at this for a couple of months, chances are you are seeing the difference in your bank account. Your financial burdens might seem smaller and that pesky raincloud over your head might be lifting.
There is no doubt when this happens a radar goes off around you that alerts your friends and family to this good news. They feel it in their bones. They will most assuredly call you with a financial emergency and the by the end of the day, if you say yes, your savings will be almost certainly cleaned out. You will feel financially drained and right back where you started. You look up and the raincloud has returned. It’s not bad to lend to family if you truly do have enough money.
Ensure they are not just draining you and that you have money left over to spend and to live on. Also ensure it doesn’t become a habit. Its fine to loan money out once in a while if the person makes a plan to you back and follows through with that plan. Once it becomes a habit is when you need to cut them off and not be afraid to say, “No. I don’t have the money right now.” This doesn’t make you a bad person. They may not be happy but they will get over it eventually. Ask them to sit down with you if they can and you can work on a budget together. See what financial worries are bringing them down. They might be the same boat or they might be worse off than you are. Either way, you are not a first national bank and should not be treated as such.
Unless you’re one of those lucky human beings who won the lotto or struck it big on a gameshow or if you’re a celebrity living large in Hollywood, financial woes will be a part of your daily struggle. With just these two tips, your financial stress will be greatly alleviated.