5 Steps to my journey to Financial Balance

Beginning my journey to financial balance was one of the most transformative experiences of my life. Struggling with debt felt like a constant hindrance, but with determination and a solid plan, I was able to see it through. The definition of financial balance and freedom looks different to everyone. Here are the 8 steps that guided me toward eliminating debt and achieving my financial balance.

Evaluating Debt: Facing the reality of my debt was overwhelming, but it was a crucial first step. I thoroughly documented all my debt, from credit cards to student loans, gaining a clear visual of my financial situation. I focused on eliminating low balance debt first, while still repaying the minimum balance on other debt. I used the uphill approach, by paying off the lowest balances first then working my way to the larger balances. There are also options to consolidate debt to a personal loan to make one payment for a predetermined loan term. Depending on the terms of the loan, you can pay extra to pay off the loan early. You can also negotiate with creditors to reduce interest rates or revise your payment plan to make it more manageable.

Creating a Budget: Establishing a budget was one key factor in taking control of my finances. Another important factor in staying on track with my budget was establishing my why. Why I was doing this and what it would mean for my family. I began by itemizing a list of my income and expenses then making sure to allocate a significant amount toward debt repayment after paying essential costs.

Reducing Unnecessary Expenses: I reevaluated my spending habits, identifying areas where I could cut back without sacrificing my happiness. This meant saying no to impulse purchases, preparing meals at home and finding more affordable alternatives for everyday needs.

Increasing Income: To speed up the debt repayment process, I generated additional income. By taking on part-time jobs, selling items I no longer needed, and creating a portfolio of books. The additional cash went toward paying off debt. Any uncalculated cash, such as tax refunds, birthday/holiday money or work bonuses, were directed toward paying off debt. I would treat myself with small rewards, but nothing that would set me backwards.

Remaining Focused: Staying committed to my strategy to have financial balance was tough, especially when faced with social temptations. Yet, celebrating reasonable wins along the way kept me inspired and focused on my ultimate goals.

Most journeys worth achieving are not easy, but the sense of empowerment and peace of mind that comes with having financial balance is priceless. With the right willpower anyone can do it.

If you need professional assistance in achieving financial balance, contact me at hello@brijonesmba.com to schedule a one-on-one consultation.