HEAD THE WARNING SIGNS OF A PERSONAL FINANCIAL CRISIS
Not too many people want to admit the hidden truth about their finances. To openly discuss this can be very painful for some. If we are to move forward and create a better financial image for ourselves and our families, we must be honest about the behavior patterns that have gotten us to where we are today. These sneaky sometimes often hidden agendas have only proven to be self serving. Remember, what’s done in the dark, does come to light at some point. Wouldn’t you rather it happen now than later? For those who do, we will marinate on the points below. For those that don’t, you will also marinate on the points made below.
WARNING 1: Having more than one credit card.
Credit should be used only for important unpredictable circumstances, like emergency plumbing. Unfortunately it’s used today as our own personal paycheck. Whenever the urge arises we charge it! Bad move on our parts. If you have more than 1 credit card, do yourself a favor and cut them up now. Out of sight, definitely out of mind.
WARNING 2: Hiding financial information
Do you feel the need to keep your purchases a secret from your partner? Do you buy major items on impulse? Do you make important financial decisions without consulting your partner? Have you ever “bet the farm” on some risky venture? Answering yes to any of these questions reveals that you are headed to some serious trouble. If you have to hide your information, you either have trust issues, which means you are with the wrong person, or you are ashamed of your behavior. Either way, get yourself some professional help!
WARNING 3: Denial
It’s not my fault! Stop playing the role of the victim. You got where you are by your own doing, not coincidence. No one held a gun to your head forcing you to make the decisions you made. Do a reality check on everything you’ve spent money on in the past month. Was it really necessary? Did it add to your physical, mental, or spiritual well being? If not, well, you know what to do with it.
TAKE THE STEPS TO CHANGING YOUR BEHAVIOR
Do more research when it comes to major purchases. Don’t only look at the price, also look at its functionality, the quality, and most importantly, will it add value to your existing condition.
Relationship issues can be your financial issues. If you are having marital problems or problems in your current relationship, often times this affects your spending habits. Research shows that impulse buying is directly related to lack of fulfillment or depression. Whether the relationship issues are with yourself or your significant other, either way, you must analyze the situation and prepare to take steps to reverse it.
Accelerate payments on your credit accounts. The experts tell you to make larger payments on higher interest loans. I say make larger payments on the loan that’s the longest. The longer a loan is outstanding, the larter the total interest will be over time. You can cut this in half by accelerating your payments .
Is bankruptcy really the solution? Only as a last resort. Don’t use bankruptcy as a bail out from your financial responsibilities. You created the problem; it’s your responsibility to erase it. It does take time. Remember you didn’t get into trouble over night.
Hard times call for harsh measures. We are in tough economic times, and it’s important that we all contribute by tightening the belts in our own financial households.
Jacqueline Ford
Financial Strategist
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