How a no-spend challenge can help your financial goals.
What if there was a simple way to change our damaging spending patterns?
Continue reading “How a no-spend challenge can help your financial goals”
How a no-spend challenge can help your financial goals.
What if there was a simple way to change our damaging spending patterns?
Continue reading “How a no-spend challenge can help your financial goals”
Revisiting your 2022 goals.
Most of us recognise the importance of setting goals, but what happens when we break promises to ourselves and a goal suddenly looks unachievable?
The warning signs of compulsive shopping.
The humdrum feelings we get from returning to work after a holiday, that ‘back to reality feeling, can hide complex behaviours that lead to financial stress.
The beginning of the New Year in Australia is a delightful period, however, as February approaches, we gradually return to our routines, facing the realities of the debts accumulated during the festive season. Here are our essential tips to tackle post holiday debt.
From mid-November to mid-January, many of us rack up additional debts through Black Friday and Cyber Monday sales, Christmas shopping, and back-to-school expenses.
These debts often pile up on credit cards, store cards, and Buy Now Pay Later (BNPL) services like Afterpay. As the saying goes, “The piper always needs to be paid.”
“The reality of holidays is over, kids go back to school, and credit card and BNPL statements have started to roll in, making us count the cost,” says Andrew Fleming, founder of Financial Mindfulness.
Accumulating debt can lead to significant financial stress, especially when it becomes a recurring pattern.
“While a limited amount of debt isn’t necessarily bad,” says Lea Clothier, a behavioral money coach, “an excessive amount can delay us from reaching our goals.” Not all debt is created equal.
Some debts, like those used to purchase income-generating assets, are better than consumer debt, which is often used for household items, clothing, and vacations.
A valuable investment is paying off the interest on your debt. Repaying debt frees up cash flow and provides a return higher than other investments. Problems arise when multiple debts accumulate, and warning signs are ignored.
Clothier likens debt to weight gain: manageable if addressed early, but much harder to tackle once it has become significant.
Ignoring debt can lead to acute or chronic financial stress. It’s crucial to face your debt situation head-on to prevent a crisis. Here are signs that debt might be a problem:
Let go of shame and guilt associated with debt. Forgiving yourself and taking positive actions can build confidence.
Honest conversations with creditors are crucial. The Financial Mindfulness app offers tips on managing debt and paying bills effectively.
Logical Approach: Pay off the debt with the highest interest rate first, as it costs more to repay.
Heart Approach: Pay off the smallest debt first to achieve quick wins and free up cash flow for larger debts.
Both strategies are effective, and the key is to stop ignoring debt and start addressing it.
By adopting these strategies and changing your mindset, you can navigate post holiday debt and start the New Year with a fresh financial perspective.
Continue reading “Essential Tips to Tackle Post Holiday Debt”
Find out by completing our Financial Stress Index (FSI) now.
Get startedin the last month
in the last month
in the last month
in the last month
in the last month
in the last month
in the last month
in the last month
Great you have completed the FSI as this helps to identify just how much financial stress you are experiencing. Your pattern of responses indicates that you are with your financial concerns.
To have your results emailed to you please enter your email addres
Please enter your email address to be notified in advance of the launch date.
[email-subscribers-form id=”2″]