I have worked with financial survival with both companies and individuals for over 40 years. The best advice I can give is a Paradigm change is always needed. The daily grind of the crisis wears on you and typically calls your attention to the wrong thing!!!! The deeper in; the worse the call for attention will be. The call is — ‘Pay attention to me, I need paid, I will do bad things, etc.’ Collectors are trained to play on fear. So you pay attention to the loudest voice, issue, problem and notice over time the debt snowball rolling downhill keeps getting bigger and bigger
Look at the Infographic with this Blog Post.
The only solution is – change your Paradigm from solving every problem to “I am going to create NO NEW PROBLEMS!”
That happens when you get to zero based cash management– you get to break-even.
A tool to help with NO NEW PROBLEMS – is a cash budgeting worksheet -weekly that should be prepared 6 to 8 weeks in advanced and rolled forward every week. This can be prepared in Excel and updated weekly with an actual results tab and extended for future periods.
By looking at actual results each week and comparing to the previous projection, the forward plan keeps getting better and better- especially the first few weeks.
Expenses should be listed by – who can put you out of business first– payroll, fed and state tax payments, major vendors etc.
This weekly plan is a great tool for further planning — associated with getting to breakeven!