Learn a few short tips on managing your finances, especially when you are in the process of satisfying credit judgements.
Here are five financial tips for judgement debtors:
1. Establish SMART Goals
Setting a goal isn’t as easy as planning out a trip for the weekend. You set the place, the time, drive, and then, done. In order to achieve a goal, you must learn how to set it properly. Goal setting is the process of making an action plan to motivate yourself to pursue your goal. It consists of criteria or set of rules that will serve as your guide to reach whatever financial goal you have.
Writing them down in your journal might be a big help so that you could make sure they’re not forgotten or neglected. Specify the date and time you want the goal to be attained; don’t just write, “I want to travel the whole state”, instead, put “I want to travel the whole state by October 4, 2017”. Being under time pressure helps us achieve the goal faster. It should also be-
Measurable:
You have a way of gauging your success.
Attainable:
You can reach it based on your strategy, motivation, resources and capacity.
Realistic:
It is something that will eventually happen if you put your heart into it.
Time-Bound:
You specify a definite period of time to achieve a goal.
But, beyond the SMART criteria- don’t ignore the fact that they will only work if the following factors are present-
- You accept your goal. You didn’t create it to please others. It is exactly what you want.
- Your goals are specific and ambitious. Performance improves when you are competing against your own standards.
- You have the ability to attain your goals.
- You don’t have conflicting goals.
2. Automate your payments
If you’re employed, ask your human resources about automatic deductions. You can also set up an automatic payment system distributing your money to your judgement creditors each month, using the bank account where your salary goes every payday.
If you have recurring payments, automating your payment can make things simple and convenient. You only need to do this once–set up automatic bill payments for the right amount and date through your account and the money will directly go to your judgement creditors. You don’t need to lift a finger or contemplate whether or not you will pay your debt this month. It will give you peace of mind that your bill is automatically getting paid. In short, you will save time, not risk forgetting your payment and enjoy peace of mind since most of the bank-approved or lender-accredited automatic billing sites are secured.
3. Open a savings account for your household expenses
After setting up an automatic payment system, make sure that you have a savings account where the money for your living expenses will be directly deposited. It will give you a clean record of the exact amount you can spend freely each month.
For people in a relationship or those who have children–keep your spouse/partner/children involved in your finances. Create guidelines to follow when it comes to spending or borrowing money. Open communication with regards to the progress of your finances as well as other related matters that have a huge impact on your finances can also help you pay off your credit judgements in no time.
4. Make a budget you can follow
If you can’t stick to your budget, it’s probably because of the following reasons:
It’s too unrealistic to follow
If you don’t have unlimited amounts of money and you’re living in the real world make sure that you know how much your money is and where it is going. Only then will you be able to shave off the expenses that are not necessary like entertainment, fashion and eating out. Identify your trouble spots—and avoid them until you can spend money on the things that you can afford.
You consider budgeting as a punishment instead of a tool to achieve your financial goals
If you dread the thought of cutting down on your expenses and making simple adjustments to meet your obligations, it is quite difficult to stick to your budget. But, if you are excited about the outcome of your budgeting and you can’t wait to see the results—you’ll definitely get ahead.
5. Establish a financial safety net
There are two ways to do this: insurance and loan.
Do you have life and disability insurance? Make sure that you, your property and your loved ones are adequately covered when catastrophe strikes. Entrepreneurs should also consider getting an insurance plan for their business, assets and interests. You’re protecting yourself against losses—because they are expensive and you may not have the finances to cover them when they happen. Insurance also safeguards the insured against uncertainty—when you don’t know what will happen in the future. If you lose your job or your business fails—good insurance coverage can help you survive for a few more months without additional income.
A second mortgage can also help you fill the gap especially when you’re in serious debt. Talk to our helpful mortgage advisers to answer your queries and give advice about your current finances and how you can pay for your obligations as judgements debtor. Contact NSW Mortgage Corp today!
