Ideally, what comes in doesn’t all go out to creditors. Unfortunately, most of us know that this is one of our best dreams. Sometimes we find all our dreams completely shattered. Would you be prepared?
Once upon a time, I was living the ideal life. She had an excellent paying job. Who had to worry about finances or budgets? Ha! I don’t. In fact, I never paid much attention to price tags. I knew I wanted it, so I bought it. I had money in the bank, a nice car, and a very comfortable condo.
But, in the blink of an eye, my dream life turned into a nightmare and I was not ready for anything. It was very scary and intimidating to realize that I had to do something drastic. Consequently, I had to learn fast, fast, and in a hurry how to reduce my debt and budget my money or I would literally be out on the street.
Health issues forced me to leave my wonderful job and all the luxuries that came with it. My savings dwindled and I went from riches to rags faster than greased lightning. The shame of it all, what would my family and friends think? Oh poor me. What did I do to deserve this? This is not fair!
Turns out I was my own worst enemy. My family still loves and supports me and my friends are still my friends. As soon as I stopped feeling sorry for myself, I resigned myself to the fact that this is how it was going to be, nothing in the world was going to change it and I had better learn to live with it. Don’t get me wrong, it took quite a while to get to that point, but the point is, I’m there and I didn’t fall off the face of the earth. I still enjoy life, my illness is not terminal, I’m just on a very low budget. To grumble, to grumble
Sounds familiar? You see my friends, you are not alone. I hope he accepts the fact before I do; you have absolutely nothing to be ashamed of. Many, many families are in the same boat. So put on your life jackets and paddle, paddle, paddle!
If you have lost your job, there is, of course, unemployment. And, depending on your circumstances, there are state and county agencies that offer additional benefits, especially if you have children. It would be to your advantage to investigate the possibilities. You may qualify for assistance such as; finding a job, temporary financial assistance, health care, food stamps, clothing banks, housing, and transportation.
Perhaps you have been spending more than you earn and are in serious financial straits. Let me share with you some of the ways you can achieve some financial stability.
Obviously, you need to establish a spending plan or budget. But at this point, it won’t have any value if you’re stealing from Peter to pay Paul.
First, you must reduce your debt and establish ways to save money. Once you’ve lined up your expenses, develop a workable budget. You must discipline yourself to stick with it or you will find yourself without that life jacket and without a boat to row, row, row.
You will have to do two things. Find some extra money and reduce your debt. Here are some suggestions to help you achieve both. At the same time, you will lay the foundation for your new budget.
Ways to get cash:
o Hold a garage or garage sale. I was surprised at the amount of money I raised.
o You may want to look for a second job. I know that I know. What a disgusting idea. But look on the bright side, it’s only until the crisis is over.
o Sell that extra car.
Ways to reduce your expenses:
o Refinance your home at a lower rate to lower your mortgage payment. But do it now because word on the street is that the Federal Reserve is going to raise interest rates again!
o Increase your insurance deductibles. Then shop for better rates on your home, auto, life and health insurance.
o Stop eating out and prepare your dinners at home.
o Start bringing your lunch to work instead of buying it.
o Shop with a shopping list and stick to it. Make your list using your grocery brochure and prepare your meals based on specials. Take advantage of buy one get one free offers. Be diligent and don’t buy what you don’t really need. Use coupons – most stores offer double the value. Buy store brands. Hey, don’t move your head. I save a lot that way! If I, the little princess from once upon a time, can do it, so can you.
o Cancel your memberships and magazine subscriptions. Instead of going to the gym, go for a walk, exercise at home. Take trips to your local library for magazines, newspapers, and books.
o Stay home instead of going out for fun. Curl up with a good book from the library and rent movies instead of going to the movies. Take trips to your local museums and free attractions.
o Cancel that cell phone or reduce your monthly bill by minimizing your rush hour minutes and only using your cell phone in an emergency.
o Become a do-it-yourselfer. Do your own home repair and change your own oil in your vehicles. Visit your local library for “how to” books.
o Take a look at your utilities. Do you have a water leak? Turn your thermostat down a few degrees and ask if your electric and gas company has a budget plan.
o Shop at garage sales, thrift stores, flea markets, and browse the classifieds.
o Shop your dollar store for cleaning supplies, paper goods, and toiletries. Oh now, now be nice… my dishes and clothes don’t know the difference and my teeth and hair haven’t fallen out yet.
There are so many other ways to reduce your expenses. Just exercise your common sense.
Most of the time money problems stem from our lifestyle choices. Before you buy something, ask yourself if you really need it.
Set a realistic budget and make those sacrifices to live within your limits. For me, peace of mind costs a lot less than that new car I dream of owning. Who knows tomorrow I might meet Mr. Right or Mr. Right Filthy Rich *wink*