How to Turn Your Finances Around When You’re Starting From Scratch

Not everyone is born with the ability to handle their finances. There are many influencing factors that will determine how a person approaches the money they have access to in their lives — whether their parents taught them, their ability to understand money, bills and budgeting, and access to enough money to be stable, etc. And that’s before we discuss things like ADHD, which impacts a person’s ability to stay on top of money matters, something a lot of people who have been diagnosed understand.

It isn’t always a case of being financially irresponsible; it’s about knowing what to do when things get tough, and you hit rock bottom. If you’re feeling more “out of control” with your finances rather than “taking charge”, these tips can help you make things a little bit better.

Know Where You Are Right Now

You cannot move forward or make things better if you don’t know your exact situation. It’s too easy to avoid, it’s really uncomfortable, and you won’t like this part of the process — but it is essential. Gather up your bank statements, bills, creditors, and anything you’ve been avoiding paying. Write down everyone you owe money to and how much.

Then you need to write down everything you need to pay. Start with rent, mortgage, taxes, and essential bills. Then add in things like your loan payments or credit card payments, your subscriptions, and so on until everything is written down.

Once you see the numbers, making the right choices becomes much easier.

Start with One Change

Don’t try to do too much at once — this is only likely to have the opposite effect. Instead, pick one change you can make. Maybe it’s cutting down on the number of takeaways you order each month or cancelling some of your subscriptions. Or putting a small amount in a savings pot. Start small, build the habit, and then pick another one. Celebrate the small wins; these are what will keep you going.

Look for Support

You don’t need to do everything alone. There are many resources or charitable organisations that can help you out. Look for resources, guides, and even influencers in the money sphere who can help and advise you.

See if you can access resources that focus on giving people a fair chance, like The Judah Spinner Foundation. The right type of support can make a massive difference and shape your next steps. And you never know — you might find you’re able to access more than you realised to help you get back on the right track.

Build in Breathing Room

If you’re one big bill away from financial ruin, you’ll always be worried things will go wrong. You can build yourself a small buffer that grows with time to help you out. Even putting a nominal amount away each week — $5, $10, $20 a month — can be a lifesaver when you need it.

Progress, Not Perfection

This is more of a mental shift than a practical one. But if you’re aiming for perfection from the beginning, you’re going to be disappointed. You don’t need to become a budgeting expert overnight, or even at all. You simply need to make better decisions, understand your financial circumstances more, and give yourself a fighting chance. Bad habits, especially financial ones, are hard to break — so go slow, give yourself time, and aim for progress over perfection. Before you know it, you’ll be on a whole new path.