| I think I've heard it all when it comes to money. When | | | | of the amounts that you owe to others. Also record |
| people state that they are unhappy with their financial | | | | the interest rate, due date and amount of the |
| situation, I know that their problems likely fall into one or | | | | payments you are responsible for making for each |
| all three of the following categories. | | | | item. At the bottom of the page write the total amount |
| SPENDING TOO MUCH - When I grew up we | | | | owed and the total amount for the payments required |
| touched money - real money. If we didn't have coins in | | | | each month. |
| our pocket we just didn't spend. We didn't have Lines | | | | On the third page write "Income" and list all sources |
| of Credit, credit cards or Overdraft Protection. Cash | | | | that make up your total household income each month |
| was all we knew. | | | | (include rental properties, interest earned, part-time |
| Often people buy things they don't need with money | | | | work). |
| they don't have to impress people they don't even like. | | | | On the fourth page write "Expenses" and list all the |
| They renovate - not based on need but on want. | | | | things that you pay each month (utilities, food, clothing). |
| After purchasing a house that is at the top of their | | | | Don't forget to add the total monthly payments that |
| credit limit, they add the toys (boats, quads, campers, | | | | you listed as "Liabilities/Debts". |
| vehicles) and then they book trips to "get away from it | | | | Now that you have everything listed you will be able to |
| all". All of this compounds the problem. | | | | do a proper assessment of your situation. |
| The "secret" to financial health is to spend less than | | | | NOT HAVING A PLAN - There's an old expression |
| you earn. This might mean not adding to your | | | | that says "People who fail to plan, plan to fail". You |
| wardrobe until you absolutely need to do so. You may | | | | may have to sell some assets to lower your debt or |
| need to eat at home more and pack a lunch. Shopping | | | | find a part-time job to increase your income. Perhaps |
| is a trap you will need to avoid as it just tempts you to | | | | your credit card company will reduce your interest rate |
| buy more. And remember, you don't have to try to | | | | if you call them and make a commitment to pay a |
| keep up with the Jones'. Living on less will give you a | | | | specific amount towards your balance on a regular |
| freedom that the Jones family likely doesn't possess. | | | | basis. |
| NOT KEEPING TRACK OF FINANCIAL MATTERS - | | | | One of the first things you will need to do in order to |
| When you do not know how much debt you have or | | | | get back on track is cut back on your expenses. |
| when your bills are due, you are at risk of | | | | There are many creative ways to do this. For |
| overspending, losing a good credit score, and paying | | | | example, instead of buying a $5.00 coffee every |
| excessive penalties and interest. Even being one day | | | | morning, make a pot at home and carry it in a travel |
| late on a credit card payment can result in a large late | | | | mug. This will save $100 per month which can be used |
| payment charge and increase your interest rate by | | | | towards debt. The result is that your balance is |
| several points. Delinquency is reported to the Credit | | | | reduced and the interest charged the following month |
| Bureau and this can affect all future attempts at | | | | will be reduced. |
| borrowing. | | | | You will likely be able to turn things around rather |
| In order to improve your situation and gain control of | | | | quickly once you have a good plan in place. |
| your financial life you will need to begin by getting | | | | When it comes to finances, a few small changes can |
| honest with yourself. Start with four blank sheets of | | | | make a huge difference and, over time, you can go |
| paper. | | | | from feeling overwhelmed to being in a strong position |
| On one write "Assets" and list all of the items that you | | | | where you will be in control of your situation. If you |
| own or are buying through payments (house, vehicles, | | | | need help with this, do not hesitate to contact a |
| savings accounts, investments). Beside each put the | | | | psychologist who is trained in problem-solving. The |
| value of the asset and then put the total of all at the | | | | sooner you book an appointment, the sooner you will |
| bottom of the page. | | | | be headed towards achieving financial well-being. |
| On the second sheet write "Liabilities/Debts" and list all | | | | |