3 Easy Steps for Solving Financial Problems and Gaining Control

Money problems—whether it’s debt, job loss, or not having enough savings—can feel overwhelming, but they don’t have to define you. My husband and I have been there. We had debt, little savings, and we were just getting by. But things changed when we started managing our finances wisely and launched a side hustle (my online business). The real turning point for solving financial problems, though, was realizing that we needed to do things differently. 

Earning more money might seem obvious for solving financial problems, but it’s not the only answer. You might be thinking, “What do you mean?”

Let me explain. It’s great to earn more money, but if you don’t know how to manage it—how to budget, where to spend, and how to plan—your financial problems won’t disappear, no matter how much you make.

In this post, I’ll share the exact steps we took to solve our financial problems. These strategies go beyond just saving or earning more; they focus on adjusting your lifestyle and mindset so that managing money becomes second nature. Stick around, because at the end, I’ve got a special incentive to help you kickstart your own financial journey!

What Are Financial Problems?

Financial problems are simply the result of past financial decisions—nothing more. They don’t define who you are; they just reflect where you are right now in your financial journey. Whether it’s debt, unexpected expenses, or other challenges, most of us face financial hurdles at some point.

Common financial problems include:

• Debt: This could be from credit cards, loans, or medical bills.
• Job loss: Losing a steady paycheck can create an immediate financial strain.
• Not saving: Living paycheck to paycheck without putting money aside for the future.
• Unexpected expenses: Car repairs, home fixes, or medical emergencies can throw a wrench in your budget.
• Bad credit: Not paying bills on time can hurt your credit score, making borrowing more expensive.
• Not investing in retirement: Many people put off saving for the future.
• Limited cash flow: Not having consistent income can make it hard to plan.

To start tackling these issues, it’s important to recognize them as temporary and solvable. They don’t reflect your worth, but you have to take action to solve financial problems.

What Causes Financial Problems?

Most financial problems are rooted in habits, not just circumstances. While that might sound harsh, it’s actually great news—because it means you can change those habits and solve your financial problems.

While some issues, like job loss, are beyond our control, many come from poor financial habits. Overspending, not budgeting, and neglecting to save are common culprits that lead to money struggles. The good news is, once you recognize these habits, you can take steps to fix them.

Some of the top reasons people face financial problems include:

• Lack of a budget: Without a clear plan, it’s easy to overspend.
• Impulsive spending: Buying things you don’t need or can’t afford.
• Not planning for emergencies: Many people aren’t financially prepared for unexpected expenses.
• Not paying off debt quickly: Interest adds up and can make debt overwhelming.

• Get Your First Dollar Financial Planner

Understanding the cause of your financial problems is the first step to solving them. Once you identify the root cause, you can begin to make the necessary changes.

What Can I Do If I Have Financial Problems?

My simple answer is this: taking action, instead of freezing in fear, is the key to solving financial problems. There’s no one-size-fits-all solution. Our lives are different, so the ways we address financial problems will be different too. Think of these steps as a template to guide you in improving your own financial situation—take what works for you.

For example, I’m not telling you to save $500 every month if you can’t. Instead, I’m giving you a framework to live more consciously with your money. You decide which actions make the most sense for your situation.

If you’re dealing with financial struggles, here are a few steps to get started:

01 Clear the clutter.

One thing many people with financial problems have in common is financial clutter. And maybe that’s true for you, too. You might dread each new bill so much that you don’t even open the letters. Maybe there’s a closet full of unopened bills and statements. You avoid checking your bank account because you don’t want to face the reality.

But here’s the truth: without clarity about your financial situation, you can’t begin to solve your financial problems. You need to unravel the clutter and face your finances head-on, even if it feels uncomfortable.

Remember that awful feeling you have? It’s just a feeling—something your thoughts are creating in your head. You’re not in danger. It’s not as scary as it seems, and once you take that step, I promise you’ll feel so much better.

Starting Point – Financial Self-Assessment

Take stock of where you are right now.

• What steps have you taken so far to solve your financial problems?
• Have you been working on your finances consistently?
• What’s your current financial situation?

When you do this, resist the urge to judge yourself. This isn’t about blaming or criticizing. It’s about gathering the facts that brought you here. You need this awareness to create real change and start solving your financial problems.

Organize and tidy up your financial records.

Initially, this work may feel tough, but I always feel better afterward. The first step is organizing your financial records so you know exactly what numbers you’re working with. This clarity is crucial—it shows you where you stand financially, and it gives you a baseline to track your progress as you move forward.

Set a clear financial goal.

This is your end point—the destination of where you want to go. Think of your financial transformation as a journey. You already know your starting point (your self-assessment and the numbers), and now you need to define your goal.

Set your goal based on your current financial situation.

What do you want to achieve in 5 years, 3 years, and even 1 year?

Having a clear goal will keep you focused and motivated throughout your journey. Without a destination, it’s easy to lose track—but with a goal in mind, every step gets you closer to where you want to be.

02 Start over by managing your finances simply.

I love a minimalist approach, not just in my personal life, but financially and in my business too. Why make things more complicated than they need to be? The more complex your financial system, the more time you spend managing it, and the easier it is to lose sight of what really matters.

Less is more.

Simplifying your finances gives you more time, more clarity, and ultimately, more money. It keeps you focused on the essential tasks that move you forward, without getting bogged down in unnecessary details.

Keep it simple.

Too many bank accounts and credit cards can lead to confusion and make it harder to stay on top of your finances. The more you have to manage, the easier it is to lose track.

Keep it simple. You don’t need more than 3 to 5 bank accounts. By focusing on fewer accounts, you can spend less time managing them and more time working on your money—saving more and earning more.

Sort out what you don’t need and keep only what aligns with your financial goals. Simplifying your accounts will help you stay organized and focused on achieving your financial objectives.

Sort out.

Old subscriptions you haven’t used in ages and outdated contracts you no longer need can be a drain on your finances. Take the time to sort through these and eliminate what you don’t need.

Review what you’re currently paying for and assess its value. Make conscious decisions about what’s truly important and beneficial for achieving your financial goals. Streamlining your expenses will help you stay focused and make more progress toward your financial objectives.

Plan your money consciously in advance.

I think this is the best approach. Since I started using a budget plan, I don’t want to go without it. It helps me make conscious decisions about my money based on my financial situation.

What’s so great about a budget plan? It gives you clarity on where your money is going and how much you can spend. It also provides confidence and control over your finances, which is crucial for solving financial problems over the long term.

By the way, keep your budget plan simple too. Avoid getting bogged down in too many categories. A streamlined budget will be more manageable and effective in guiding your financial decisions.

Switch to autopilot.

Set up automatic payments whenever possible. Having regular payments automatically deducted from your account ensures you don’t forget them and frees you from constantly reminding yourself.

I personally automate my savings for both my emergency fund and investments. By doing this, I never miss a contribution, and I make sure to save at the beginning of each month. Automating these processes helps keep me on track with my financial goals without extra effort.

03 Take action and track your progress.

One important lesson I’ve learned on my own financial journey is the need for massive action. Just planning and deciding what you want to do won’t help solving financial problems. You need to take significant, decisive steps.

What this looks like will vary depending on your financial situation. Consider what you need to do to pay off debt, increase your income, or make other financial improvements.

What new habits can you develop to support your goals?

Always remember that these new actions are what will ultimately change your life. It’s not just about planning; it’s about taking bold steps that lead to real transformation.

Decide on small steps you will take.

Start by creating a list of small steps you can take to improve your financial situation. It’s not about taking big leaps right away; small steps are often the best way to begin.

Starting with manageable actions will help you build momentum and prevent you from giving up too soon if you’re not seeing immediate success. Begin with what you can do right now and then gradually move forward.

Here are a few small steps to consider:

• Review and categorize your expenses: Identify where your money is going and categorize your spending.
• Create a basic budget: Start with a simple budget to track your income and expenses.
• Set up automatic payments: Automate bills and savings to ensure consistency.
• Reduce unnecessary subscriptions: Cancel any services you no longer use or need.
• Save a small amount each month: Start with a modest savings goal and gradually increase it as you can.
• Track your spending for a month: Get a clear picture of your financial habits and identify areas for improvement.

By focusing on these small, manageable steps, you’ll build a strong foundation for financial improvement and set yourself up for success.

Plan your tasks like a pro.

Plan your first step in your calendar and commit to it, no excuses! Treat it as an important appointment with yourself.

When planning your step, focus on specific outcomes rather than vague tasks. Instead of writing “work on the budget,” be more precise like “enter expenses for the month of [Month] into the budget.”

This approach will help you measure your progress and know exactly what to expect.

Plan for obstacles.

It won’t always be easy, and I can promise you that you’ll encounter resistance along the way. That’s why it’s important to plan for potential obstacles when you schedule your steps.

Think ahead about possible challenges and develop strategies to overcome them. For instance, if you anticipate that time management might be an issue, plan specific times in your day dedicated to your financial tasks. If you struggle with motivation, set up a reward system for completing each step. By preparing for obstacles and having strategies in place, you’ll be better equipped to stay on track and keep moving forward.

Evaluate and repeat.

Track your progress regularly and evaluate what’s working and what isn’t. This will help you ensure that you’re on the right track and make necessary adjustments.

Solving financial problems requires a willingness to recognize mistakes and persist despite setbacks. If something isn’t working, don’t be discouraged—try something new. Your ability to adapt and keep going is key to overcoming financial challenges and achieving your goals.

Resources:

• Breaking Free: Get Out Of Debt In 7 Steps
• Create an Emergency Fund Easily Without Feeling Overwhelmed

Taking these steps can relieve a lot of financial pressure. Remember, small changes can lead to big improvements over time.

Solving Financial Problems Better

The best way to solve financial problems is to adopt new habits that set you up for long-term success. This is something I’ve learned from my own journey. By focusing on developing positive habits, you simplify the entire process and create a solid foundation for managing your finances effectively.

Once you’ve taken the immediate steps to address your financial challenges, it’s time to focus on long-term solutions.

Consider these strategies:

• Live below your means: Spend less than you make to create room for savings.
• Automate savings: Set up automatic transfers to your savings account to ensure you’re consistently putting money aside.
• Invest for the future: Once you have a solid emergency fund, start investing in retirement accounts or other growth opportunities.
• Stay educated: Continue learning about personal finance so you can make informed decisions.

• Why Investing for Retirement is So Important for Women (and How To Do It) 

By focusing on creating good financial habits, you’ll be able to prevent financial problems in the future and feel more confident about your money.

FAQs About Solving Financial Problems

Solving financial problems: Take Action Today

Financial problems don’t have to be permanent. Take the initial steps for solving them. By changing your habits, creating a budget, and making small but meaningful changes to your lifestyle, you can get back on track. Take it from me—my husband and I have been there, and we’ve come out the other side with more financial stability and peace of mind.

Want a little extra help getting started? Download my free financial plan here and sign up for my newsletter to get more tips on managing your money and reducing stress. Let’s work together to solve your financial problems!

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