6 Tips to Manage Financial Problems


In our financial journey, everyone hits setbacks. 

The way we choose to deal with it matters. 

With the right problem solving tools and mindset, you’ll be able to overcome your financial problems. 

This article was written by a Financial Horse Contributor. 

1. Right size the problem

Financial problems can easily become overwhelming.

But it is important to contextualize.

Is this really a life and death situation? Or are you making it worse by imagining worse case scenarios.

Being able to “right size” your problems means identifying the actual problem, and knowing that you can solve them if you put your mind to it. 

2. Don’t fall prey to “easy” solutions

When dealing with financial problems, it may seem tempting to let others “solve” it for you, or to take a “loan” or some kind of short-cut to make the problem go away.

This very rarely pans out.

Know that you have already made a mistake once, don’t make it again.

Know that you have to take control of the problem, and face it yourself in order to solve it. 

3. Deal with it head-on

If you’re experiencing debt, job loss or other types of financial problems, it is important to face them face-on. 

Pretending the problem doesn’t exist, or wallowing in self-pity, will not help you. 

If you are able to take a deep breath and face your problem head-on, you’re already on track to solving it. 

Know that you are not the only one facing these issues. 

Solutions and resources are always available if you are willing to face your problems. 

Get a complimentary job advisory session from Workforce Singapore. 

Attend a debt management talk to find out more about your options.

Get free legal advice from a legal clinic near you.

4. Slow and steady  

In building financial security, slow and steady wins the race.

Often, mistakes are made when people try to short-cut their way to success, or avoid doing the requisite due diligence before making financial decisions.

Know that compounding is the 8th wonder of the world, slow and steady definitely wins the race.

5. Prevention is better than cure

When dealing with financial problems, it is important to go back to the roots. 

What is the root of the problem?

Why did you make this mistake?

What led you to this situation?

If you can identify the root of the solutions, or trigger points that led you here, you can prevent the same situation from occuring again.

Everyone makes mistakes, you just need to learn from them. 

6. Protect your mental health 

Financial stress can be all encompassing.

Know that you are not alone, and reach out to trusted friends and family.

Talk to someone. 

When you are overwhlemed with problems, it is very easy to just dwell on the negatives.

Try to look at the glass half full, identify the good things you are grateful for in your life. 

Forgive yourself, and know that you can solve your issues by taking one step at a time. 

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