debt planning

If you’re here on our website right now, reading this blog, it’s likely that you’re seeking financial advice one way or the other. That is, after all, what we do at Kennedy Wealth Management. While there are plenty of reasons for financially secure people to seek wealth management strategies, we also get contacted by a lot of people who are struggling with debt.

Debt is extremely common, especially in California where living expenses are high. And, unfortunately, it can also cause an undue amount of stress on someone’s life. There are countless different types of debts, and as they begin to coalesce together, it creates an unimaginably terrifying sum of money that feels impossible to pay off — and even worse, grows bigger over time.

How does one escape from this stress? Well, take a moment to breathe, because we’re here to help. While we can’t magically erase anyone’s debt problems with the flick of a magic wand, we are highly experienced in helping people navigate through these kinds of crises. Here are some ways you can reduce the burden of debt-induced stress in your life.

Create a Plan

One of the most crushing aspects of debt is the seemingly unsolvable equation of how to pay it all off. And we’ll tell you right now, if you don’t have a structured plan to take care of it, it’ll only get worse. Not only that, it will feel worse because of the ambiguity. The most important thing you can do with debt stress is to sit down, stare it in the eye, and create an organized plan on how you’re going to take care of it.

Even if your plan takes 20 years to pull off, the feeling of “this will be better in 20 years” is still much better than “this will never, ever get better.” Do you need help creating a solid plan? The next point will be helpful.

Consult With a Finance Professional

Nobody expects somebody with a broken leg to treat it themselves instead of seeing a doctor. In fact, common wisdom would suggest that the problem would only get worse. It’s the same with money management. You can resist professional consultation all you want — especially since it’s a service that costs money — but by doing so, you’re not getting help for what is clearly a problem.

Money problems are nothing to be ashamed about, and getting professional help from a wealth management advisor is a sign that you’re actively fighting to overcome your weakness. That is respectable, and the advice from financial advisors will have measurable results as long as you heed their wisdom. Results are sure to have another nice side effect — less stress!

Focus on the Positive

This might sound like some generic motivational speech that you’d find in any self-help book, but the reason it has become a cliche is because it works. There is power in positivity, and when it comes to finances, it can be sobering in all the right ways to take a moment and realize what you do have.

First of all, a little bit of appreciation goes a long way. What things do you have that have added significant value to your life? Thank yourself that you were in a place where you were able to afford them. What are your living conditions? Appreciate the fact that things could be a lot worse. By taking inventory of the good things, it can really help to ease the crushing stress of debt.

But positivity can also have another helpful benefit — it helps you to realize the strengths that you do have. By analyzing these, it may help you to develop other productive habits. Do you have a good income but you constantly squander it by overspending? The pessimist would feel self-loathing, or that the income isn’t enough for your desired lifestyle. The optimist, however, would see an opportunity — you can do a lot with a stable income as long as you’re willing to make some changes!

Educate Yourself Financially

At Kennedy Wealth Management, we’re happy to lend our professional expertise to help people manage their money. And, while we still firmly suggest that you see a financial advisor, there’s also a lot you can do on your own to educate yourself about money management. There are countless resources online, and a smorgasbord of well-written books that help the average joe to become financially wise.

If you want a good starting point, be sure to check out our blog post about four essential money management books. But that’s just the beginning; there are professionals you can talk to, classes you can take (both online and in college), seminars you can attend, and much more that will help you to become financially educated.

Enjoy Your Life

There are many forms of stress that ebb and flow according to your life circumstances. Injuries heal over time, relationships die while new ones are born anew, stresses in the workplace come and go, and so on. Your body is fairly well-attuned to handle temporary bouts of stress, but it suffers when there’s something inescapable that’s always looming on the horizon.

For many people, this is debt. One can’t just miraculously pay off all their debt in one fell swoop, short of winning the lottery (an investment we can’t recommend on a good conscience), so debt hangs over them at all times. But here’s the simple truth — you can’t get rid of it right now, so stop worrying so much! As long as you have a plan and a budget, things will eventually work themselves out, even if it takes years. That’s about all you can do, so don’t let it destroy your life and happiness.

Focus on the areas of your life that bring you authentic enjoyment, and get the most out of those. Enjoy the relationships you have with friends and family. Take a well-deserved vacation (that you’ve budgeted for, of course). Build up your talents, and invest time in your hobbies. Your debt will always be there, sure, but there’s a whole lot more in your life that will also be there too. Take advantage of it, and you’ll find that your debt stress will feel less oppressive.

Financial Advisors in Calabasas and Surrounding Areas

Looking for wealth management experts in Southern California? We offer our financial advisement to people in Calabasas and other surrounding areas. Whether you want advice on debt management or you’re coming in for other wealth management needs such as retirement income planning, we’d be happy to help. Contact us today to get started!