Financial challenges can make everyday life more stressful for anyone, but these struggles can be more significant for seniors. You might be working with a limited retirement income, for example, which means debt can continue creeping upward rather than down.
For business owners, consulting with LGH Consulting can help you streamline tax considerations and boost your wealth. But for anyone who’s facing debt in retirement, consider these strategies for relieving financial strain.
Outline Your Debt Repayment Plan
Ignoring debt won’t make it go away. Even making the minimum payment on an outstanding debt won’t make much of an impact as fees continue to add up. Therefore, your first step in addressing financial challenges is creating a plan. You’ll need three components for a successful debt payment plan: expert advice, a solid budget, and the self-discipline to stick with it.
When you’re facing significant debt, obtaining professional advice can help you develop a realistic approach to paying it down. If you have substantial repayments to make, seeing a pro can help you feel less stressed about moving forward. Debt management with a debt relief specialist involves looking at the amount you owe, your employment and income status, and your ability to repay the balance.
Outlining your budget is the next step. NPR recommends the 50-30-20 budgeting method to get your finances in order. But first, you’ll need to add up all your income and debts. Understanding your tax obligations on disability income is another crucial part of outlining your budget and spending power.
Taking steps like freeing up extra cash can also help on your debt journey. Refinancing your home when interest rates are low can reduce your monthly mortgage obligation. Overhauling your mortgage at a better rate and with more favorable terms is ideal if you plan on remaining in your current home long-term.
Sticking with It
Maintaining your motivation and sticking with your budget is vital for success. Tracking your accomplishments – no matter how small – will help you see the bigger picture. Enlisting the support of your partner or friends can also help you remain accountable.
Don’t Dwell on Money
This next strategy is easier said than done, but there is indeed more to life than money. Rather than focusing on how much remains to be done, think about the progress you’ve made so far. You can also find ways to keep busy at home – without spending more money – and focus on self-care.
Learn Relaxation Strategies
Visualization and muscle relaxation techniques combine to help you reduce tension and feel better, both physically and mentally, notes Mayo Clinic. By focusing inward, you can talk yourself down from your fears and develop a more positive outlook.
Get Moving, Daily
Physical activity is beneficial in many ways, especially as you get older. To enjoy your golden years with better health and lower stress levels, incorporate exercise into your routine. Balance exercises can help keep you safe as well, even if your equilibrium declines as you get older. Dedicating time to getting moving and even heading outside can brighten your mood, too.
Pick Up a Hobby
Keeping busy may require you to invest your energy in something other than worrying over your bank account. Consider picking up – or indulging in – a hobby to keep you productive and positive. Discovering a new passion can introduce you to new opportunities and social connections, too.
Dealing with debt is not easy, but there are steps you can take to ease stress and start feeling better about your situation. By obtaining professional advice, creating a solid plan, and changing your routine to incorporate healthier habits, you can forge a positive path toward a debt-free life. And if you need expert advice on business investments and finance, book an appointment with LGH Consulting today.
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