Ahh, the frivolity of youth, where everything is fun and nothing matters, right? Well, it might seem that way, but unfortunately, the things we did in the past can still have knock-on effects today. Making smart money decisions now is all well and good, but you might have a few financial wounds to heal from some not-go-great decisions that were made in the past. The good news, however, is that all is not lost. Your financial past doesn’t have to ruin your financial future.
Learn from mistakes
The best thing about making mistakes is that we know not to make them again. Sure, they might take hours of hard work and a whole lot of scrimping and saving to get back on track, but you know exactly what not to do next time around. When you’re bemoaning your current financial situation, don’t beat yourself up, but always bear in mind what led to this point - it’s the best way to ensure that mistakes don’t happen twice.
Pay off debts
Debts are a surefire way to drain your money and ruin your credit score, so dealing with them has to be priority numero uno. Whether it’s debts from credit cards or loans, the longer they sit around gathering dust (and accruing interest), the bigger the problem is that you’ll have on your hands. So knock it on the head while you can. Pay back higher interest debts first, as they’re guaranteed to be the ones which will cost you the most. If you’re overwhelmed by the whole ordeal, reach out for help. There are so many resources available, to debt consolidation companies to free debt advisory services - just remember that you’re not alone, and that it’s not an impossible task.
Secure your credit
The problem with poor financial decisions is that, even once the debts are paid off, your credit rating could still be looking rather unhealthy. This could leave you with higher interest rates, and you may even be rejected for loans or a mortgage in the future. But it is possible to fix it, as long as you meet the requirements of most credit repair companies. It usually involves keeping any credit cards to a minimum, avoiding going overdrawn on your overdraft, and even reconsolidating any remaining debts, but it’s totally do-able.
Keep looking forwards
Your future is what matters now, not your past. So while you might regret your poor purchasing decisions, or you regularly berate yourself for racking up credit card debt, it’s what the future holds that counts. Learn from your mistakes, and make efforts to avoid the same mistakes in the future. Your credit score is fixable, and you’re still in a position where you can learn more about managing your finances. Make a budget and stick to it, and you’ll soon see how straightforward it is to get your head around financial management.
Your past doesn’t have to affect your future as long as you go through the necessary steps to make the improvements you and your finances require.