If you’ve ever been at the register in a grocery store and had to put items back on the shelf, or you’ve had to sell your house because you could no longer afford it, you know the stress that comes with money problems is real. At times, it can feel as if there’s no way out of your situation, but the truth is you simply haven’t found the right route.
Getting back on your feet after financial hardship is one of life’s most trying feats. Recovering from financial struggles requires discipline, a willingness to learn from the past, and the resolve to make difficult decisions. Continue reading to get some tips that can help you manage financial stress.
Seek counseling
People don’t typically think of psychologists as the people they need to see about their money problems. However, money troubles can have adverse effects on your mental health, and eventually, it could even lead to problems with your physical health.
One of the benefits of cognitive-behavioral therapy from a clinical psychologist is they’ll help you get to the root cause of your money problems. A top psychologist in NYC has compassion for their patients and an understanding of the problems money troubles cause, such as relationship issues, substance use, and mental health issues. Mental health professionals can help you overcome the stress of money problems and develop a strategy to overcome any mental roadblocks and behaviors detrimental to your prosperity.
Downsize
New York is the most expensive city in the country to live in, having some of the world’s most expensive real estate. If you own a piece of that real estate, you should consider selling it and downsizing. There are plenty of private investors in NYC looking for the right investment property, and you could make enough money from selling your house to downsize and start a new life.
Downsizing allows you to significantly cut your cost of living. Real estate is always at a premium in New York City, and your property could be the key to unlocking your financial prosperity.
Take out a loan
Another way you can ease the stress of a financial downturn is to take out a loan. If taking out a traditional loan is harder than it sounds, that’s because it is. You have to worry about your credit score and proving your ability to repay the loan. The process of proving your creditworthiness can be arduous.
However, if you have enough collateral, you could qualify for a private loan. Private lenders require a higher down payment, and you’ll have a higher interest rate, but your credit score won’t be a factor in your eligibility as a borrower.
If you’re selling your home, you could use a bridge loan to buy your next home rather than a mortgage. It’s important to weigh the difference between a hard money loan and a traditional mortgage, so to learn some of the differences between them, Google “hard money loan vs mortgage.”
Reward yourself for your discipline
It’s easy to beat yourself up when you have financial struggles, but it’s important to remember to be kind to yourself. As you learn how to manage your finances and exercise discipline over your spending, you’ll reap the financial rewards. It’s okay to reward yourself when you do start reaping those rewards.
As you know, money problems can take a toll on every area of your life. Finances are one of the leading causes of 50% of marriages in the United States ending in divorce. It can also cause mental health issues that can even lead to problems with your physical health. The good news is that by seeking counseling, downsizing, and changing your financial behavior, you can get on the road to financial recovery.
