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5 Steps that Will Help You Cope with Your Debt

5 Steps that Will Help You Cope with Your Debt

There is an old saying that goes something like this “He who goes borrowing, goes sorrowing”, and I couldn’t agree more. In the good old days, borrowing was considered the last resort for a person in need, but nowadays it seems that everybody has some sort of debt, no matter how small. Our society is built upon the idea of credits and loans and the more you take, the more you need. The more you have, the more you want. And no matter what we do, we end up paying the price, sometimes for years. Chances are that at some point, some fancy guy in a suit will knock on your door and take everything you have. Luckily, all problems have solutions. So in order to get out of debt, or at least limit your debt, there are 5 steps that must be taken.

Step #1: Make Your Problems Your Priorities

It doesn’t matter if you work for a minimum wage or earn a decent living. With all these temptations, it is hard to stop getting loans and credits. The truth is that debts have become a normal part of our lives according to recent studies, and we are more often than not tempted to take on more than we can handle.

And although there is nothing more rewarding than standing on your own two feet, it is hard to do it with no debt whatsoever. College life is expensive, so you choose a student loan. Then, you want your own apartment or house, you get married, you have kids, you need cars and a change into the household appliances every now and then. And many people don’t get rich overnight, nor do they win the lottery or land on a gold mine. So credits and loans are the only solution to lead a normal life, like everyone else. But unless you want to spend the rest of your life paying interest, and worrying about your overdo payment, you have to take steps to dissolving your debt. Make the clearing of all your unresolved financial issues a top priority, and no matter what interference might occur, stick to your plan.

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Step #2: Stop Spending Your Money on Useless Stuff

It isn’t easy to embrace the frugal lifestyle, but nowadays there are so many resources and living examples of people who did it and who are living a care-free life, that you can’t be scared of trying it yourself. You know the saying “less is more”, so try applying it in your own life. Do you really need to buy all the junk you find in stores? I know you love chocolate, and you’re craving for a dinner out in the town, but you should focus on things that actually matter if you ever want to start moving forward. And it’s not a matter of giving up, it is a matter of simply clearing that cloudy sky and making a difference in your lifestyle, by creating balance. Balance leads to well-being.

Plus, you’d be amazed at how much money you can save if you put a little effort into it. Here is an idea to experiment: every time you go into the supermarket, try to think if you really need a certain item, and if you don’t, put the amount of money you would have spent on it somewhere else. Check that little deposit in a few weeks. And smile.

Step #3: Dealing with the Reality of Debt

If you accepted the fact that you have a debt problem and that you have to stop spending money on things that lack importance, the next step is to actually deal with the reality of debt. This means understanding the fact that although the bank may be offering you loans and credits for personal needs or for business needs, it certainly does not hold back from taking it all away when payments are not made in time. You go from wanting it all to losing even the little you had.

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There are many online resources and finance blogs that can advise you how exactly to deal with your debt in your country and which debt tools to make use of. In Australia, for example, debtconsolidation.com.au shows us that consolidation tools such are repayment are the most preferred ones. A repayment plan of your home loan would look like this:

    In other countries, people prefer to make one big loan, so they can cover all the other small ones.The most important focus of this strategy is that you will no longer risk missing payments and getting into more problems, because there is only one big problem that you have to worry about. It might sound a bit harsh, but having just one problem to deal with can be a life saver.

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    Step #4: Write Everything Down, Keep a Check List and Open a Savings Account

    It may not sound like the best advice, but writing down all your costs and profits will significantly help you manage your money. How exactly, you might wonder? It is simple: if you are diligent, and never forget to write everything in a notebook, you will be able to make a grand total at the end of the month/week, and see exactly what it is that is burning a hole through your pockets. To add more, try keeping things organized in a check list, so that you know what is a must and what can be saved for later. Organizing your spending budget is a key part in preventing new unwanted debts.

    Remember, we want to deal with each problem at a time, so preventing unwanted problems is also a smart way of living. Each time you managed to do something, even if it is just a simple action as to giving back some borrowed money, check list it. But what about holidays and expenses? Well, open up a savings account. Be it for Easter, Christmas, or other holidays and birthdays. It’s better to plan ahead. So if you want to spend some money, but not over do it, then this is the answer. Wondering what to do and where to “cut” from, so you can save money? Scroll up to Step 1 and read the experiment suggestion again and then come back to Step 5. Now you know where to start.

    Additional Pieces of Advice

    1. Never Give Up

    It takes a few weeks to get into serious debts, but you might be paying for this mistake your entire life. Nevertheless, if you have found yourself in a truly dire situation, where everything looks as though it could come crashing down in the blink of an eye, try to remain calm. Put your patience hat on, stay strong, and try to make the best out of what you have.

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    2. Stay Positive

    Optimism is the key to give peace to our minds. Nothing good will come out of stressing yourself. Remember that important lesson in math class: every problem has a solution. Stay focused and find it through creative realistic ways. But before that, keep your mind sane, so that it functions to its full potential.

    3. Carefully Choose Your Words and Your Actions

    Think, before talking and acting. Your actions can have side effects on your happiness and on the happiness of your dear ones. There are so many people who are consumed by their financial issues and still fail to understand that money does not bring happiness and luckily, there still are plenty of things money can’t buy.

    Word of advice: never joke around or say “I am forever in your debt” to a bank representative. He might take your word on that one.

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    Roxana Nasoi

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    Published on November 8, 2018

    How to Answer the Tough Question: What are Your Salary Requirements?

    How to Answer the Tough Question: What are Your Salary Requirements?

    After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

    But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

    Unfortunately, this is the wrong approach.

    Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

    Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

    Of course, you can’t command a high price without bringing value.

    The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

    1. Hack time to accomplish more than most

    Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

    With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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    Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

    Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

    For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

    Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

    It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

    2. Set your own boundaries

    Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

    Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

    Here are some important traits to consider:

    • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
    • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
    • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

    These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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    3. Continuously invest in yourself

    Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

    You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

    Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

    Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

    Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

    It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

    4. Document the value you bring

    Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

    To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

    A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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    Here are some ideas:

    • joesmith.com
    • joeasmith.com
    • joesmithprojects.com

    Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

    During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

    5. Hide your salary requirements

    Avoid giving you salary requirements early in the interview process.

    But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

    The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

    Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

    6. Do just enough research

    Research average salary compensation in your industry, then wing it.

    Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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    Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

    Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

    7. Get compensated by your value

    Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

    Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

    Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

    You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

    The bottom line

    You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

    You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

    Featured photo credit: LinkedIn Sales Navigator via unsplash.com

    Reference

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