What is financial paralysis?
You have bills and debt up to your eyeballs. You feel like a deer that is frozen in headlights. You don’t know what to do. You’re in financial paralysis.
Here are some tips to snap you out of the financial coma and help jump start your journey out of debt.
Write down your problems. This one is painful but it’s the big pinch that will bring you back to reality. Start by listing all of the companies and people that you owe. After that, write what you owe each of them. Afterward, list each individual monthly bill and how much you pay each month. Get it out of your head. It’s a good start to taking action and formulating a plan.
Start with super small goals. If you’re in financial paralysis, monthly goals aren’t for you at this point. You need constant monitoring at first. Start with weekly goals for a while. Try saving $50 bucks a week in a jar.
Stop guilt spending. You buy something because you feel guilty. You feel guilty because you buy something. Realize what you’re doing and stop the spiral.
Realize that it’s a marathon, not a sprint. People in financial paralysis are usually more than a few payments away from being where they want to be. Once you realize that slow and steady will win the race, it will feel less overwhelming.
Recruit a training partner. If you workout with a partner, you’ll be familiar with the concept. Find a buddy who is fighting the same battle as you. Both of you can converse openly about your money problems. The act of getting your problems out of your head will help tremendously. Plus, you can motivate each other to succeed.
Play with a debt consolidation calculator. Maybe it’s the number of payments that’s bumming you out. Try rolling all your debt into a single payment. Crunch some numbers. Investigate hypothetical situations. Be careful though.