Mental & Emotional Health

Yesterday I brought up a touchy subject … money! Today I am going to try and tackle an even touchier subject … learning how to realize when you don’t have enough money.

The first thing most financial experts recommend is finding out where you stand. Do you have your situation under control or do you have a major money problem? You may have to look at how you answer these questions before you move on:
~ do you have any savings?
~ do you only make the minimum payment on your credit cards?
~ do you have more than two or three major credit cards?
~ are you unsure about the total amount you owe on all your debts?
When it comes to debt, and these important questoins, time is of the essence. The sooner you react to your situation, the easier it wil be.

Once you have honestly tackled the “where do I stand?” questions, it’s time to learn about systems that can help you out. Budgeting is an easy way to take control of your financial situation. There are many sites out there that can help you create one that fits with your lifestyle.
Making A Budget
CNN’s Make-A-Budget
Make a Budget Stick
An Online Budget Calculator
Making A Budget Really Work
Microsoft’s Tips for Making a Budget Work

Now that you have your budget created, you’ll need to work towards actually getting out of debt.
* Know about your credit cards.
* Pay off the balance on the credit card with the highest interest rate first (unless the balance on any card exceed 50 percent of your credit limit).
* Learn to use cash instead of credit cards.
* Use direct deposit for your paychecks.
* Cut down on your discretionary expenses. This includes dining out, overusing your cell phone, and other such unnecessary expenses.
* Evaluate your living situation. Your housing costs should be no more than 33 percent of your household income.
* Avoid borrowing money to get out of debt, especially consolidation loans.
* Contact your creditors and try to work out repayment plans.
* Become a savvy shopper. Look for deals, bargains, and savings.
* Look for extra ways to make some money.
* Round up. For speeding up the time it takes to pay off your mortgage, simply add a few dollars each month. Those dollars are applying to the principal, and even a few dollars a month can trim years off your debt. One idea is to round the amount up to the nearest ten.

Once you can concentrate on using these techniques to lower your debt, you can then read tomorrow’s piece on stress-reducing techniques and changes to create a lower-stress lifestyle. The burden of financial stress can be lowered!