Most of us have undergone the situation where we want so badly to improve our personal financial situation and we just can’t! We are always asking “Why can’t I ever seem to get it right?” or “Why does it always seem like I have so little?”
Well, I have positive news for you it is not impossible to get it right! You just must be willing to make the changes and follow your plan!
1) If you are in debt you must stop spending gas, groceries, cable, and any other expenses that are necessary for your life. Keep your biggest expenses to be your mortgage, utilities, and insurance. “But $15.00 for a soda and $39.00 for your cell phone!” You are spending beyond your means on food and beverages, you have to give it up, it will not kill you, and it will give you some extra cash to pay for your debt.
2) This may be tough, but start taking 10% off of your clothing budget and put that money toward paying down the debt. You do not have to exhaust yourself just slack in your clothing budget.
3) You do not have to deprive yourself! This is the most difficult part for most, to just cut off a few things and live. Cut out a coupon for a box of cereal for example.
4) Cut back on eating out so many meals. If you are struggling on a low income and can’t afford to go out several times a week, Craigslist or your local library will have many great deals for a fun weekend with a family, or it could be just one night a week to have comfortable and inexpensive comfort foods. One family I know goes out only once each week, and their annual vacation spends just a fraction of what it used to. Money truly does fly!
5) If you have credit card debt, make reducing the debt a priority. This will help you save money and even get your life back in order once you are able to throw some things away and maybe settle some other bills you have.
I Programmed For My Personal Financial independence and now I am Powering My Life
I have a 5 Step Program to follow that you may find helpful.
Step 1 blank Options… NOW
Write down ALL your current debts. List them out to the penny, and do not become discouraged if it appears overwhelming. This is your first step toward gaining control of your finances. Are you spending beyond your means? Are you falling behind on your minimum payments?
Step 2 – Pay the minimum payment on all your life on cards except for the card with the lowest balance, and apply all your extra cash to that one. Do this until you have paid that one-off. Once it is done, do it to the next lowest and so on until you are debt-free.
Step 3 – Only use what is in the bank…..If you have a lot of equity in your home, sell some of the items that are not being used. You may not have been using them anyway. Put all excess money towards your debt. Do not spend this money. Pay off your debt!
Step 4 – Control your spending and budget/use your budget to find extra money to save and apply to your debt. Do not spend this extra money. You are not even putting it in a savings plan.
Step 5 – Notify your Creditors of Your Bankruptcy
You need to tell your creditors that you are in the process of declaring bankruptcy. Just do it in writing and follow up after a few weeks. Most creditors will work with you and forgive some of the debt because you are about to declare bankruptcy and they will get nothing. This is the first step.