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Is it Time for a Mental and Financial Check Up?

This is the same checklist Lee Travathan uses with clients that want to make more money while staying mentally strong.

Let's face it. It has not been easy.

A lot of people are having difficulty paying their bills in our current pandemic affect climate. Are you one of them?


Is it Time for a Mental and Financial Check Up?

Do unpaid bills cause you to lose sleep at night or make you feel depressed? Are you being harassed by your creditors daily, to the point that you don't want to answer the phone? Please do not fret. Read further. You are not alone. Far from it!

A lot of people are having difficulty paying their bills in our current pandemic affect climate. Are you one of them?

I have had deep concerns about friends and neighbors wrestling with financial burdens due to Covid. And I've counted my blessings many times that this happened after I retired.

I've watched my daughter worry about losing her job of 15 years, and I watched her daughters deal with emotional issues due to online learning. They needed to be in the classroom with their favorite teachers and friends. Thankfully, it all worked out for them, but not for everyone. My son-in-law is still out of work and living in a hotel after losing a very prestigious job near the beginning of the pandemic. And a funeral was held for a one of our friends just a few days ago... taken too early by Covid.

Let's face it. It has not been easy.

When the Covid 19 pandemic hit, millions of people lost their jobs almost overnight. We all know someone right now who is worried about how to pay basic living expenses. Hundreds of thousands lost friends or family members to the virus over the first 6 to 9 months. If depression did not haunt them, unpaid bills kept them awake at night. So many felt emotionally crippled and lost without a plan for moving forward.

If you are not able to settle financial debts, you may be proclaimed bankrupt by your creditors. This means that they take action against you. But there may be some safety measures you can take before that happens.

Let's call this a mental and financial check-up. This is the same checklist I have used with clients that want to make more money while staying mentally strong.

You will remain in financial trouble if:

1. You are living beyond your means by spending more than what you are making. This has often been referred to as living high on the hog. And it will get you in trouble every time! This is true, no matter what the financial climate is. It is just a good rule of thumb to never live beyond your means.

2. If you are depending on credit cards to pay for your daily requirements.

  1. This may mean that it is time to pick up a side gig. Don't hesitate. There has never been a better time to do this. In fact, it is predicted that our future economy will be great for side gig hustlers as many more businesses move online. And statistics show that the new up-and-coming millionaires of our day started building wealth with side gigs and multiple streams of extra income. Doing a few simple online searches will give you many reasons to get going with the gig life while you work to pay down debt. You might just find that you love it!
  2. Using credit cards is glamorized in our society. Advertisements make it look so easy and fun to put a purchase on a card. This is to be expected in a consumer-driven world. But don't fall for it. Be wiser than the advertisers.
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Should you find that your mental state is suffering, please get help. Financial problems must not make you shed hope or draw you into anxiety. Don't give your personal power away to sadness. There are many options to reclaim your financial health and wellness. It is just going to take a bit of research. Take into consideration readily available options before you plunge into depression. Online searches can tell you what your best options are.

1. Careful budgeting is essential to your money intake and outgo as well as your psychological wellness. This will always be true. Even the wealthiest people in the world learned long ago to live on a budget. It gives you personal power over your money.

2. Create a plan of possible expenditures according to priority. Be completely honest with yourself.

3. Minimize unnecessary costs on things like trips, entertainment, and impulse buying. Ask yourself this question: Do I want this, or do I really need it? If you just want it, you can probably do without whatever it is. Apart from reducing unnecessary costs, this is an opportunity for the household to bond. Find free things to do together.

4. Living like a broke college student would significantly help reduce expenses. Choosing to eat beans and rice over steak may also improve your health. Many studies show that a plant-based diet can help you stay healthy and live longer.

5. Try not to use credit cards as a ticket to a limitless costs spree. Bear in mind that these acquisitions will need to be paid later, with a rate of interest that can be up to 29%.

6. Don't eat up any savings that you have. Do your best to replace your income first. When you can do it, pay off the smallest debt first. This is called the snowball effect. Once you have cleared that debt, go for the next smallest debt. Throw what you can at it. Even amid a global financial crisis, your aim should still be to remain debt-free.

7. Selling possessions you no longer want or need will not just make you money but will help you build your bank account. This, combined with a gig life, can really change your situation quickly. We all have way too much stuff. Studies show that purging our homes helps us deal with stress better. If you are not using it or don't want it anymore, sell it, donate it, or pitch it.

The federal government provides assistance in the form of unemployment settlements, food stamps, and clinical help. Churches in your area are often sources of extra support.

Enlisting the assistance of debt counseling firms would help substantially resolve this issue. These firms can be found around the country by doing online searches. They offer free solutions or a very affordable rate to individuals with monetary troubles. Credit counselors have the prime job of giving aid to people seeking assistance.

They will work as an arbitrator and can work out settlement timetables. Their goal is to restructure your circumstances by formulating cost-effective spending plans. A word of caution, however, some credit report counseling firms would certainly aggravate your economic situation. Beware if you are asked to provide money for their services. Do your due diligence and check out their ratings with the BBB and other online sources.

Bankruptcy is a method by which a person in an economic crisis can have a fresh beginning … a clean new slate. It should be considered as a last option only. Personal bankruptcy would result in a damaged financial background that could haunt you for years.

The personal bankruptcy document would stay for, at the very least, 10 years, but the psychological sting could last much longer. A financially paralyzed person ought to think about bankruptcy as a sensible alternative only if the peace of mind it can bring clearly outweighs the shame of being branded a monetary risk.

Financial problems can be worked out over time. Staying as positive as possible can not only help you hold on to hope, but it may also help you stay healthy as you work your way back to financial comfort.

Helpful resources -

Dave Ramsey Debt Snowball

Covid 19

Government Resources

Time to declutter your mind and your home.


More Money

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2021 Lee Travathan

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