As the current economic climate seems to get worse, it’s probably fair to assume you’re a little worried about your finances, if not quite worried. It could be that your debts are starting to get the better of you, it could be that the bills are mounting and you’re not sure what to do about it. What can be safely assumed is that your not reading about how to manage your finances for the fun of it. There’s no need to feel bad, many people haven’t got a good grasp of their financial health, as a species, we dislike bad news as much as the next guy.
You can get an idea of your financial situation by honestly answering these questions:
– Do you know how much you owe, and to whom?
– Is more and more of your household budget being diverted to your debts?
– Do you have late bill payments due to lack of money?
– Have you started avoiding certain debts?
– Do you only pay the minimum credit card balance because you can’t afford any more?
– Are you using credit cards or short term loans to pay for living expenses?
– Have you maxed out or been refused service on any of your credit cards?
– Have you any savings?
– Do you have to borrow money from friends of family to get by?
– Are you being harrased by your creditors?
– Are you preoccupied with your finances?
– Is your financial situation causing loss of sleep?
– Is money leading to arguments in your home?
– Are you drinking more to forget about your money troubles?
– Do you spend more than you earn?
More people are labouring under the idea that “you are what you buy”. Perhaps you think that if you spend more, that means you must be more successful. It’s an easy trap to fall into, in modern society we are constantly told through the media and such that better things mean better people. It’s not very often that a television advertisment tells us to be frugal, save more and only buy what you need. If your always trying to have a better house than Ted down the street, maybe Ted isn’t the best influence. In fact, Ted may be bankrupting your family.
You need to recognise emotional spending. If when you feel sad, or when you want to celebrate the first thing you do is head to shopping mall, or peruse Amazon, or regulary eat out at places you know you can’t afford, you may be addicted to spending. And just like any other addiction, it’s a hard thing realise. We all like to reward ourselves from time to time, but if spending becomes a constant reward, it may be time to do something about it.
If you think you’re an emotional spender, you need to deal with it fast. There are many support groups you can find online, just like any other problem. If you feel it neccessary, mental health professionals are also well versed in spending issues, should you seek them out.
The last problem we’re going to tackle in part one, is the “live in the moment” mentality. A lot of people simply don’t think about what’s coming, tomorrow doesn’t exist. Living in the moment is a great lifestyle, but it can be an expensive one. I assure you, tomorrow is coming. Some symptoms of “living in the moment” are:
– Using credit to often.
– Not paying off credits cards, assuring yourself that “there’s plenty of time for that”.
– Saving very little, if you save at all.
– Not maintaining your basic finances (household budget, balanced cheque book, etc.).
Take the time to do an honest self evaluation of you money habits, being mindful of the topics we’ve covered, and in part two we’ll be moving on to credit reports, and what you can do with them.
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