Moving out of the red

You are probably wondering right now whether it is possible to balance your household’s finances and live comfortably at the same time. Has anyone else in your situation managed to get back on his feet?

The answer is absolutely YES.

It doesn’t matter whether you are in financial difficulties, doing well, or even rolling in money – correct financial management will enable you to live peacefully and to realize your most important dreams. Of course, a household suffering from financial difficulties should start budgeting as soon as possible, as the first step in achieving financial stability and getting out of debt.

Come and take part in our program to achieve financial rehabilitation.

The first and most important step in the process of developing and carrying out a financial management plan is to check where you stand financially. Are you mature enough to take responsibility and transform your financial situation? Do you believe you can change the way you make financial decisions? Can you identify at least one advantage for you from changing the way you manage your finances?

It’s important to understand that there is no magic here. You will need to put in a lot of effort and determination and take personal responsibility for the process. In the end, the investment will pay off.

Correct management means management within a budget. The budget is the tool that measures the financial goals of the household (income vs spending) and details the way they will be achieved. Living according to a budget enables you to control spending.

Once you have made the decision to start the process of change, you have accomplished stage 1 and you’re on your way!

However, before you plan your budget, set your goals.

Goal Setting

Sit down with a cup of coffee and note down, on paper or in MS Word, a few questions to ask yourself and discuss:

• What caused you to go out on a new financial mission?
• Which of your financial behaviors would you like to change?
• What are the goals you would like to achieve?

The answers to these questions will act as a guide later on in the process, when you will want to check your progress and achievements at each stage. Defining your goals will help you carry on in face of difficulties on the way, and will prevent you from regressing to your old bad habits.

This thorough and comprehensive process will bring you to correct and responsible management of your household and to a new and calm reality.

Have you set your goals? Let’s go ahead to the next stage: Examination of your real financial situation.

Keep reading: 

Budget management: Stage 2 – Mapping

Budget management: Stage 3 – Building the Budget