Get a Grip on Your Finances

One of the first things I did was to simply make a list on ledger paper of all my monthly expenses. For some reason the simple act of physically writing down all of my expenses and debts forced me to focus on them in a way you I might not have in the past. Don’t forget to list all the things you might pay cash for such as fast food stops, haircuts, movies, and pizza night that you might not otherwise have accounted for.

Next I divided up my expenses based on my income; for example; I got paid twice a month so I split my bills by the first and second half of the month. I asked myself, what do I need to pay with this paycheck and what can I afford to pay? Once I did this, I was able to get a better picture of what I was responsible for.

In the old days, I used to have several envelopes for such things as rent, food, phone, train fare etc. because I knew that if I put the money in the envelope, that’s what it was for. If you’re someone who struggles with discipline something like this just might help you.

Now take a hard look at your financial situation. If you are in need of debt consolidation then don’t delay (the longer you take to pay it off; the greater your financial responsibility). Look for no-profit organizations for help as your first step.

If you have a charge card or two that is in trouble, take the time to figure out what you owe and figure out ways to send extra payments to pay down the debt. It could be as simple as deciding that you will bring your lunch to work instead to buying it for the next few months or buying one less outfit.

If you typically spend between $5.00 and $7.00 a day for lunch then bringing your lunch will save you about $100.00 a month!! You could use this cash to pay down your charge cards! The key here is to trade off. The more you think about ways to save, the more ideas you will come up with. This process has many benefits because it will in power you to take charge of your financial freedom. The bottom line is that you will begin to feel good about the choices you have made even if that means a little sacrifice in the beginning. Remember – it’s all about your financial freedom.

Money Conscious from the Start

I’ve always been tight with money. Growing up poor in the Bronx taught me a few things about money or the lack there of.

In 1962, my father died unexpectedly leaving my mom to raise 5 kids on her own. Needless to say, my Dad’s income as a Postal Clerk for Post Office left a big hole in our family income. Yes, my Mom had Social Security benefits but she was so proud, that she would not apply for social service (welfare) benefits. Needless to say; we had no health insurance benefits to speak of. So when we got sick or needed to go to the dentist etc., my Mom had to make some real choices about how the money was spent. I witnessed firsthand the choices a parent makes when income is limited. I watched closely as my Mom struggled to pay for the basic necessities and keep her head above water.

From the time I was a little girl, I knew that there were those with money and those without. I made up my mind early on that I was going to be one of those people who had money and could manage it wisely.

Over the years, I have tried to learn every possible way I could to be “smart” about money. I learned how to bank it, save it and invest it wisely. I watched every program about money and read every article I found in magazines and followed as much of the advice that I could, given my income and financial situation at the time.

Today, at 45, I’m proud to say that my husband and I own our home without a mortgage, we own two cars with no payments, and we have no debt what so ever! We have our retirement accounts set and working for us and we have well established college accounts for our kids. We did this with hard work and discipline and not much else.

As I hear in the news about the millions of people who are drowning in debt and are struggling with finances, it makes me sad to know the stress this causes on families. I also think that “life financial skills” of some sort should be taught to kids at an early age.

With this in mind, I wanted to share what I’ve learned and what has worked for me during my very modest beginnings.

Don’t misunderstand this blog, I’m not going to pretend that you haven’t heard all this information before, I’m just saying that I have actually tried many of the tips, tricks and techniques that have been recommended by financial experts and want you to know that it can work.