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How to Solve Financial Problems in Family

ByTristram Ouma

Apr 17, 2022
How to solve financial crisis in the family

How do you solve financial problems in family? Are you going through financial turmoil that you don’t know how to get out of? Do you have financial obstacles that create difficulties in your daily life?

All the endless bills and unforeseen expenses can be burdensome and depressing. I have gone through all these personal finance issues and trusted me, it is nothing to joke about.

But I was able to completely resolve my own money problems through education.

In this article, I am going to share with you the best steps that helped me eliminate all financial stress from my life.

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How to solve financial crisis in the family

Here is what you need to do:

01. Acknowledge the problem

The first step to solving any problem is to admit there is a problem.

It may be difficult for you to recognize your family’s financial problems at first, especially if you have been living paycheck-to-paycheck for many years.

However, this does not mean that there are no problems to start with. Acknowledging the existence of a problem is the only way to start finding solutions.

If you push it under the rug and hope that it goes away, it will only get worse.

For example, if your family has high credit card debt and ignores this issue every month by throwing money at minimum payments without considering how much car insurance costs or how much long-term care insurance costs, then they are ignoring the underlying issues involved in having bad credit card debt.

The problem will not go away on its own; instead of getting better, it will only get worse as more bills pile up and interest rates increase.

02. Get everyone on board to solve it

Get everyone on board to solve it. If your family is experiencing a financial problem, you’re not going to be able to solve it on your own — no matter how much money you make or how quickly you pay off debt.

When everyone agrees the problem needs to be solved and they all agree to work together, you can get past the issues holding your family back.

Communicate openly and honestly about the problem. One of the most important things that couples need to have a happy marriage is good communication.

But when it comes to finances, many couples don’t talk at all or they only talk about what they want or feel like talking about.

Open communication is key for solving family financial problems because if someone doesn’t know there’s a problem, he can’t help find a solution.

Talking about money isn’t always comfortable but families that do so more often are happier than those that don’t talk about money at all. (Check out this list of common money arguments among couples.)

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03. Set achievable, family-wide goals

While setting goals, make sure to do so in a way that is specific and measurable.

For example, instead of saying something like “save more money for college”, set a goal like “Save $600 per month for the next year towards my son’s college fund.”

In addition to being specific and measurable, goals should be clearly defined by your entire family.

Once you have determined what goals you want to achieve, make sure that everyone else in the household is on board with them as well.

Finally, be sure to set deadlines for when each goal must be achieved by.

It is important that you give yourself enough time to complete this process but not so much time that it feels less urgent and less important than it actually is.

04. Prioritize, cut expenses and put away savings

It’s also important to take a good look at where your money is going. Make a list of what you spend your money on each month.

This is will help you solve the financial problems you’re experiencing.

You can do this by looking back over the last two months, or you can use a spreadsheet for the next two months.

Once you know what you’re spending your money on, it’s time to prioritize.

Hopefully, food and shelter are at the top of your list (if not, call me right away). After those necessities are covered, cut back on things that don’t fall into those categories.

For example, if you have cable TV and Netflix but eat out more than twice a week–cut back on eating out and cancel cable and Netflix (now I’ll never know what happens in Stranger Things).

If you go through Starbucks like water but spend hundreds of dollars per month on clothing–cut back on clothes shopping and make coffee at home (it’s actually way better).

The point is this:

There are certain expenses we simply cannot cut because they’re necessary for our health or safety or well-being. But other expenses? They can be put off until we get our finances under control.

Spend some time evaluating how much disposable income you have each month.

Cut down as much as possible without impacting your basic needs too great.

Then put those savings into an envelope or savings account reserved solely for emergencies (unexpected medical bills, job loss).

05. Get professional financial help if you need it

It may be time to seek professional financial help if:

  • You haven’t been able to pay your bills on time in the past six months or more, and you don’t see that changing.
  • You have no idea where your money goes each month.
  • If you’re feeling overwhelmed by the quantity of bills coming into your mailbox or inbox each month.

If you need professional financial help, it’s important to seek out an advisor who operates on a fee-only basis, rather than one who sells products for commissions.

When looking for an advisor, read their online reviews and ask around for recommendations of good advisors from friends and family members.

A professional financial advisor can help you make a budget that works for your family, create a plan for paying off debt, assist with tax preparation and filing, educate you about investing options like 401(k)s and IRAs (individual retirement accounts), or offer advice on other areas of personal finance such as estate planning.

The cost of hiring a financial advisor will vary depending on the services they provide but is typically somewhere between $1,000 to $2,500 per year.

As long as you’ve been helped to solve the financial problems you are going through.

We all have issues in our family, but most of them can be solved.

The key is to approach the problem with a positive attitude and not wait for it to go away on its own.

Keep in mind that problems are a fact of life, so learning how to cope with them will help you deal with them for a lifetime. Your family will thank you.

Many people will only find out they have a financial problem when they’re in debt.

However, it is much better to try to avoid these problems before you get in over your head. By looking at all of your areas of spending, such as your home and cars, you can come up with an idea of where you can cut back on spending.

As well as doing this, you need to look at your income. You may need to take a second job or ask for a raise at work if the government’s unemployment number is troublingly high where you live. There are so many different ways to solve your financial problems but remember to always be wary when it comes to spending money.

Tristram Ouma

I am a content marketing consultant, blogger, and freelance writer. I live in the beautiful city of Nairobi, Kenya with my family. My passion is to write as well as share unique content with my audience.

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