Starting a new life can be a great opportunity to make different choices and decisions. However, doing it without money can be a real challenge. To get the most out of your new life, start making a goal list and keep a positive mindset. Learn more about savings strategies and your spending habits. Find a job to increase your earnings and, if necessary, ask friends and family for help.
Steps
Method 1 of 3: Deciding How to Live Your Life
Step 1. Clarify the reasons why you decided to start from scratch
Think about whether you are creating a new life out of necessity or out of desire. If it is a choice based on a need, you must also think about the ways in which you need to improve your condition. If, on the other hand, you are moved by desire, consider carefully what your ideal life is.
- For example, if you are starting a new life because you have to move away from dangerous relatives, you can include in your plan to limit your contact with them.
- If, on the other hand, you are starting from scratch because you are looking for a challenge and new emotions, you can consider putting yourself in unusual circumstances, for example moving to a foreign country.
Step 2. If necessary, plan the move
You may have to change your apartment or house to really start a new life in the same city. Or you may need to change status directly. Do as much research on the internet as possible to determine the best strategy for using your limited funds. Look for places where the cost of living is low and where it is easy to find work.
Finding places to live is within your reach by selecting cities, then searching the internet for estimates of rents and food costs. For example, in the Cook Islands an apartment costs around € 120 per month
Step 3. Decide who to keep in touch with
Starting from scratch can mean cutting off many personal ties, but it is not always necessary to break contact with loved ones. Make a list of all your friends and relatives so you can understand what role they should play in your new life if you want to include them. You should also think about how to communicate your decision to all interested people or whether you will not give them any explanation.
For example, if you are trying to rebuild your finances and have a relative who has a tendency to be a bad influence in that regard, you need to consider whether to continue interacting with him in the future
Step 4. Write a journal of your goals
Spend at least 15 minutes a day writing and thinking about your current situation and changing your goals. Try to create monthly, yearly, five-year, and ten-year goals. Regularly reevaluate these goals and change them as needed. Make sure they are closely aligned with the type of life you want to lead in the future.
- For example, you could write "I would like to be able to set aside € 500 by the end of the year". This will help you gain more economic stability, so it probably aligns with your life choices.
- Make sure you think big as well as small when choosing your goals. Don't be afraid to try to reach a goal that seems distant to you.
Step 5. Break each goal into a series of realistic steps
Consider exactly what actions you need to take to achieve each goal and write them down in sequence. When you decide to tackle a specific goal, use this list as a reference. In this way the more distant goals will still seem possible and in the same way you will feel more in control of difficult situations.
For example, if you want to save some money, you should probably start keeping track of your expenses or maybe open a deposit account
Step 6. Look for exciting and new experiences
It's easy to let the unknown and unfamiliar break down when starting from scratch. Instead, you should care about using positive adjectives when describing what happens to you. For example, don't think "weird", but "exciting". If you feel too anxious, open your eyes and find something positive about your new environment.
For example, try to notice the natural beauty of an area. Notice how birds fly in the sky or how sunlight shines through the canopy of trees. If you are forced to spend all day in the office, you can print those pictures and hang them around you
Step 7. Encourage yourself
Starting from scratch takes time and a lot of effort. Don't expect everything to go right overnight. Instead, you should be kind to yourself and acknowledge all your victories, even the smallest ones. Over the course of the day, repeat to yourself "You are doing well". Compliment yourself as often as possible.
- It is helpful to consider your life as a book. You are only in one chapter among many and you cannot know what the ending will be like: you are still writing it.
- You also need to be careful when you fail, so that those episodes don't stray you too far from the path you want to take. For example, if you spend poorly on your limited funds, try to correct the mistake as soon as possible.
Method 2 of 3: Regain Economic Stability
Step 1. Make a list of your debts
Grab a sheet or open an Excel file on your computer. Write down all the information about your debts. Include data on the amount of payments, due dates and percentage of interest expense. Update this list often and remove paid debts.
- This also allows you to assess which debts you need to pay off first and which ones can wait. For example, it is always a good idea to pay off high-interest debt as soon as possible.
- An entry on the list can be "American Express credit card, balance € 1,800, interest expense 18%, € 25 minimum payment per month".
Step 2. Develop a savings plan
Even if you don't have any money at the moment, it's still a good idea to consider what you will do with the money when you have it available. Your goal should be to abandon a lifestyle where you jump from one paycheck to another. To do this, you could find a job and deposit part of your pay into a savings account every month. You can also do some research on the internet to find out about the best savings strategies.
There are also many useful "tricks" you can learn to spend less, such as saving up the rest of your expenses using an app, such as Qapital
Step 3. Choose a frugal lifestyle
Make the decision to look for affordable but safe accommodation. If you have to move, choose a place where you can live sparingly. Learn about the cost of living and consider the benefits of living in a city or rural area, for example. You can also think about saving on transport by giving up the car.
For example, in Panama it is possible to live comfortably on around € 300 a month
Step 4. Find a job
If you don't have a paid job, look for one by creating a good resume. It may be helpful to list all your skills before applying for a job. You can contact an employment center or visit job posting sites on your own. Make sure you only apply for legitimate opportunities.
You may also consider using your skills by starting a business
Step 5. Create a backup plan
Without a financial safety net, there are many aspects of life that you need to carefully consider. You will feel less anxious if you think of at least one Plan B for all the most important decisions and actions you take. Think of the best and worst cases.
For example, if you are saving money by cycling to work and it breaks down, what will you do? You may want to inquire about public transport as a back-up option
Step 6. Talk to a financial advisor
Go on the internet, write the name of your city and "financial advisor". At that point, contact all available professionals and ask if they offer free assistance. If you get an affirmative answer, make an appointment and bring all the documents about your financial situation with you to the meeting. Some professionals may ask you to join a financial support group with other clients.
You can also search the internet for financial advice forums and ask members how to save and track your expenses
Method 3 of 3: Get Help
Step 1. Take advantage of government programs
Talk to local government agents and ask if you can take advantage of social assistance programs. Think of them as a temporary way to improve your finances and set yourself up for success in the future. Make sure you follow all the program guidelines.
For example, there are many funds (including European ones) available for small business owners. Some of them can help you start a new business even if you don't have the necessary capital
Step 2. Ask for help from friends and family
Tell them what your goals are and your plans for starting from scratch. Listen to their tips and advice. They may also be able to provide you with other resources, financial or otherwise, to help get you back on your feet.
- Understand that your story and choices can also help others make positive changes in their lives. For example, you might have a friend who is struggling with debt and can benefit greatly from the information you have learned.
- When talking to friends and family, you can say, "I have very little money, but I'm trying to find a job in an industry that guarantees regular pay and social security contributions."
Step 3. Consider living with friends
Expenses can quickly fill your entire budget and savings potential. If you have a friend or relative who is willing to let you sleep on their sofa for some time, you can consider that option. This will save you money and have enough time to find accommodation that fits your frugal lifestyle.
You may not be the only person you know who lives in other people's homes, especially in big cities. It is quite common for friends to host others looking for work in the most competitive and crowded areas
Step 4. Make many professional contacts
Whenever you talk to someone, consider if they can help you professionally. It may seem like a mercenary attitude, but consider that you too could help others. When in public, try to talk to whoever you meet and be as friendly as possible.
For example, if you are looking for a job as a waiter, you should talk to the staff when you eat at the restaurant. You may receive advice on how to find work in the area
Step 5. Talk to a psychologist
Go on the internet and look for the name of your city that is more "psychologist". Contact the available professionals and ask if they offer free sessions or group therapies. In that case, you have a great opportunity to reconsider your past choices and understand how you can make changes in the present. In addition, you can also find new friends in a support group.
