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Why do people wait until the last minute, when they’re in over their heads financially, going down for the third time, to pay attention to their finances? Many of us deal with our finances the way we deal with our laundry. We wait until the very last minute to do our laundry, until we’re completely out of clean undies, because we find doing laundry to be a distasteful task. Right now, less than 0.6% of disposable income is going into savings and less than ten percent is available to pay down consumer debt. Yet consumer debt continues to be at record high levels. A combination like this is a sure set-up for financial disaster. Now is the time to inventory your financial situation and make necessary changes. Three warning signs to look for with your finances: 1: Credit balances that never get any lower. 2: Increased fighting or anger about money. 3: Giving up on your financial situation or kicking into overdrive and working maniacally to “fix” the problem. What steps can you take to head off disaster before it is too late? 1: Analyze your spending habits and income. Are you currently at break even each month, or are you over-extended, with no money left at the end of each month? Without judging, start tracking where you spend every penny, whether it’s cash, your debit card, checks, credit or whatever. Decide whether or not where you are currently spending your money is truly where you want to be spending your money. If not, make the necessary changes right now. 2: Put away the credit cards. I know it’s tempting to use them, especially with school expenses right now. But look at the cycle: last month it was vacation expenses. Next month it will be holiday shopping, then spring home improvements. And on and on. Why be a slave to MasterCard? Why pay someone else 20% of your hard-earned money? 3: Ask yourself how you truly feel about being financially secure, financially independent. Do you believe you are worth it? Do you believe you deserve to be financially secure? Most of what we think and feel about money was learned by the time we were five years old. We used our life experiences to reinforce those beliefs, until they became entrenched. A good prosperity advisor or money coach can help you break past those misconceptions and fully embrace your worthiness – when you do, the abundance will follow. What if financial crisis is already upon you? Immediately check to see where you can eliminate anything unnecessary; brainstorm to see where you can scale back. Brown bag lunches, eliminate meals and drinks out, eliminate packaged foods and soft drinks, cancel subscriptions and memberships and other “monthly” expenses like cable, cell phones or internet providers. Get rid of a car payment, take in a roommate, sell your video or CD collection. Yes, some of these actions may inconvenience you. Remind yourself that any inconvenience will be temporary. Thomas Jefferson, an avid book collector and reader, sold his entire library not once, not twice, but three times in order to keep Mount Vernon operating during hard times. He cut back, and when times were flush again, he rebuilt. Dealing with your finances this way will definitely eliminate a great deal of stress from your life – and could help you freeze a financial disaster in its tracks.
Article Source: http://www.articledestination.com
Performance Coach and Prosperity Advisor Paula Langguth Ryan offers a free 30-page e-booklet titled Heal Your Relationship With Money. To get your free downloadable copy, visit www.ArtOfAbundance.com/healing.htm Ryan is the author of Bounce Back From Bankruptcy: A Step-By-Step Guide to Getting Back on Your Financial Feet and the forthcoming Break the Debt Cycle -- For Good!
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