Vietnam is one of the fastest-growing economies in Southeast Asia, and based on current predictions, there’s no slowing down for Vietnam’s economy in sight.
However, while the economy has been expanding, so has the consumer lending market. Household debts have risen by 28 percent annually since 2000 and the business finance sector has seen similar figures. However with the finance comes the flip side: financial challenges, which can leave you stressed and frantically seeking answers. While financial setbacks can be discouraging, they are resolvable. A positive and determined outlook, along with a few handy tips can help you overcome them and move forward in your life.
Refresh Your Financial Knowledge
Regardless of how the financial challenge occurred, you will need a financial recovery plan. Start with identifying where and how you went wrong. For many, overreliance on debt and its high costs is the cause. This is particularly applicable to the Vietnamese market where the credit card market has exploded. By the third quarter of 2018, there were already 4.6 million credit cards in issue.
For others, the issue may be down to mismanagement of their finances. If this is the case, it’s time to update your financial knowledge and tools. This can be either a budgeting, business cash flow course or even a financial crash course on preparing for retirement. Locally, organizations like LienVietPostBank host financial training courses to help boost financial literacy. Additionally, there is a wide range of information available online that targets specific financial concerns including repaying debt, cutting costs from your budget or how to stretch your money post-career. Institutions understand the change in lifestyle and income that affects everyone in retirement, and the need to save for that period in your life. More often than not, you will find them offering some kind of information or service to help you.
Build Up Your Reserves
Creating a fall back plan means you are better prepared. Rebuild your reserves including your emergency cash fund, to ensure you are financially stable. To get started, develop a budget based on your current income with a monthly inclusion being diverted to a separate savings account. To help track your spending, automate your bills and transfers. Mobile finance apps and tools can also help you stay in control this time around. Alternatively, you can consider additional ways to earn extra income such as freelance jobs.
Pay Attention To Your Mental State
Money troubles are one of the top stressors for consumers and its impact on their lives can be wide-ranging. Financially induced stress can affect sleep patterns, productivity at work, and your financial recovery. However, you can minimize the impact and it is important that you do so. Focus on seeking support from family and friends or a professional. There are also community outreach counselors and programs in Vietnam that are aimed at low and middle-class families. Online resources like PsychologyMatters.Asia’s database of therapists can help you find professional help. Finally, work on getting yourself to a point of acceptance. Spending time blaming yourself can only distract and harm your recovery. Make time for self-care, whether it is through exercise, healthy eating or a hobby. Self-care can help you destress, and with a clearer mind, you can focus on rebuilding your financial health.
Financial setbacks happen but they are not impossible to recover from. Focus on creating a new vision, new financial goals and a roadmap for the way forward. Create a plan to make the most of your income, repay high costing debts and rebuild your financial security. Above all, be sure to stick to it, and focus on the positives going forward.