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The majority of Americans have experienced some financial challenges this year. Many hardworking people have lost their jobs, have had to cash out retirement and asset funds to make ends meet, or had to seek government assistance. Many more have simply had to rely on credit cards and other risky financial habits to get by. Whether you have experienced severe financial distress, or are simply looking to start the New Year off on a path to financial freedom; there are some quick and easy ways to improve your financial outlook for 2021.

Analyze

The first step towards improving your financial situation is to analyze and assess where you currently are in your financial goals. Begin by examining the monthly, or weekly, costs for essential expenses such as housing, utilities, food, clothing, medical care, and debt payments. Next review the expenses for non-essential expenses. Compare the percentage of your income spent on essential versus non-essential expenses. Further, calculate the overall percentage of income-to-expenses.

Develop

Once you have taken a deeper look into the details of your financial situation, you need to develop a plan. Your plan should consist of a few key components, starting with a savings/emergency fund. Yes, you should still be saving for emergencies even when money is tight.  In addition to your emergency fund, your plan should also focus on eliminating unnecessary expenses from your monthly spending budget. This will help lower your income-to-expense ratio.  Finally, outline a strict plan for your debt payments. If you cannot afford to pay more than the minimum payment, look for ways to maximize your monthly payments by transferring the balance to a zero interest card or request a lower interest rate from your current company.

Establish

Many times, people fail at financial recovery because they do not put their plan into practice. Like a New Year’s resolution for any goal; financial health should take the same priority and discipline as other areas of health in your life.  Be sure to take the plan you have developed and put it into action each and every day. Build yourself small rewards for your discipline in getting back on solid financial footing, this keeps you motivated to continue your consistent efforts.

If you are experiencing trouble with your finances, are worried about your debt payments, or are already being harassed by creditors; contact an office of compassionate Sacramento bankruptcy lawyers today at 916-459-2364.