Did you know that 75% of Americans live paycheck to paycheck? Are you one of them? Knowing how much of a financial crisis most people are in – keeps me up at night. The worst part is that the majority of people do not even realize it. They have no clue that that they are walking right into a financial disaster. That they are one layoff – or one major medical incident away from losing everything. <<< That is why I created the Better Life Budget E-Course. So people can get a real look into their finances – and be able to develop and execute a plan that ensures their well being no matter what life throws at them!
Today I want to talk about some of the unexpected & expected reasons your finances might be veering off the road.
Why Your Finances Are Failing:
- Your house is messy.
It is true. I have been a victim of this – and I know SO many people who fall into this trap routinely. How it goes: Your house is messy (hello! I have kids!) BUT instead of cleaning it, you think that the solution is a new storage container, or you need new cleaning supplies, because you don’t really like your shower spray. Maybe shopping is your way of avoiding cleaning your house, all together. So you run out to the store and buy the new containers even though your totes work perfectly fine! Or you go and get a new vaccuum cleaner, even though all the one you already owns only needs a filter cleaning.
Solution- Stop making excuses and just clean your dang house. You DO NOT need new cleaning supplies. You DO NOT need the new storage baskets… what you need is to pair down, donate the excess, pick up and put away. - No Goals.
You do not have an clear cut goals. You might have a lot of things you wish you had. You might have a long list of things you hope to do, or places you’d like to travel to – but no set goals to actually accomplish those.
Solution- Give your goals an end date. Make a plan for your life. Do you want to visit Africa within two years? Do you want that dining room table before Christmas? set a date for you to reach your goals – and write down your path to accomplishing those goals! - No plan to get out of debt
Again, I am shocked by the number of people who just pay their bills every.single.month without realizing how much money they are spending on interest payments – how long they will be paying on those bills before (if ever) they are paid off. Most people do not realize these things until they cannot make their monthly payments.
Solution- Take the time, to get real about your financial situation. Do not spend another day ignoring, or being naive about how much money you owe. Do you know what your financial health number is? Do you know how much money you are “throwing” away every year to wasted interest payments? <<< I suggest using the Better Life Budget E-Course. - Skipped basic budgeting steps
If you have little to no savings – you are just asking for trouble. The first accident, family crisis, or unexpected tax bill and you are in trouble. What would you do, if you had to pay an unexpected $3,000? Do you have it in the bank, or would you have to get a loan from family, or put it on a credit card? Without a safety net, you just going to be adding to your debt total, when an incident (and it will) occurs.
Solution- Build up your emergency fund!! Go on a spending freeze, and get as much money as possible in your savings account. Having this emergency fund will stop you from having to add unplanned debt to finances. - No Accountability
Okay, be honest – how many of you have created a family budget – and then never stuck to it? Sure you know what you should be spending on groceries each week, but do you actually work to adhere to that figure?
Solution- 1st, create a realistic budget – one that is feasible for your family. Get yourself an accountability partner. If your spouse is not on board, or you are single grab a girlfriend! You need that person that will bring you back down to earth, one that will talk you right out of TJMaxx, and one that you can work together to reach your individual goals!
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