| Terry Rigg is the editor of the Budget Stretcher Newsletter. The
Budget Stretcher Newsletter is published monthly and is loaded with
information that will save you time and money everyday. Go to
http://www.homemoneyhelp.com for more information. |
If
you are worrying about your money problems it's time to STOP IT NOW!
Easier said than done, huh.
In my 25 to 30 years working with
personal money management problems I have never seen worry help
solve the problem. In fact it has just the opposite effect.
Worry clouds your judgment. You have
certain actions that you need to take to get your problems solved
and you will need a clear head to make the necessary decisions.
 In some cases the worry leads to
desperation and is used as an excuse not to face the problem.
Let me say this in explicit terms
"No one dies of starvation or goes to jail because they can't
pay their bills in this country". I understand that there have
been people starve to death in the US but that was more than likely
an extreme situation. Also, if there is anyone that goes to jail
because of their debts you can bet there was fraud involved.
Even if you don't have any income at
all there are places to turn. Worrying is not going to make things
happen.
The best thing you can do to get
started solving your money problems, after you stop worrying about
it, is to access your situation. You have to look at it as if you
are an outsider looking in.
Find out exactly what the problem is.
This is easier than you think. Here are a few of the most common
problems that are causing your worries:
Credit Card Debt Medical Bills
Impulse Spending Mortgage Payment or Rent too high Absence of a
Budget Unorganized Bills and Files Late Payments & Fees
Overdraft Fees Not Prioritizing Spending
If you have your spending set up by
category it won't take long to see where the problem is. Here is an
example:
Recommended Percentage of your
take-home pay for Housing, Other Bills and Household Expenses should
be around 30% each with the remaining 10% going toward your long and
short term savings. Click here
to find out more about these percentages and how
to setup an easy to use budget.
If one category exceeds the 30% by
very much that is part of the problem. This is the area where you
need to concentrate your efforts.
You can approach this in two
different ways. The first method is to cut your spending in the
category that you have determined to be the problem. The second is
to cut spending or expenses in other categories to make up the
difference.
I recommend that you be careful about
cutting your Household Expenses too much. While you can cut your
grocery bill and some other areas, you will need a certain amount of
money to run your household.
No matter what your current money
situation you can find help on the internet free. Be careful not to
fall into the many scams that are currently all over the web.
As with any other type of problem you
are not going to solve your money problems by worrying about them.
It takes action. The sooner you get started the better.
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