I am sure there are many persons around the world these days biting their nails over the economy. They are worried about layoffs, dispossessory actions, bills they cannot pay, foreclosures, and not having a safety net in their life. For the last few years, the world has run on credit instead of cash. Now credit is taking a sabbatical! Many persons are making the mistake of looking toward the government for the answers, because they have no light at the end of the tunnel. The problem is that most persons do not have a budget. They wing it all the way to hell. If a car looks great buy it! There is no point in reading the terms. It is impulse buying. A wrong assumption is "If they let me drive it out of the showroom, I must be qualified to pay for it!" If I can drive a Mercedes, why should I be seen in a used Ford Tarus?
Many ring up far greater debt, and use their home as an ATM and take money out for trips, vacations, autos and many items. Most cannot even remember what they spent it on. You can't do that. What about personal resnsibility? My parents told me "Save your money, don't buy something unless you have the money to pay for it. You always have to have a rainy day fund in case of sickness, a job loss or some catastrophic event...!" No where in the constitution of the United States is the government supposed to bail us out. The government was never designed to pay for prescriptions, medicine, retirement, debts, monthly rent or rebates! Personal accountability begins with the individual. The problem with credit as many are now seeing, it can also be taken away. Do you have the cash to survive if your access to credit was frozen? Start today before it is too late! Let's be real, the soulution begins wiht each one of us.
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Create a budget and stick to it! Food, transportation, bills, rent/mortgage, insurance etc...
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Review all your expenses and trim them.
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Do not eat out! Do not eat out! Do not eat out! Brown bag it!
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Plan your meals and learn how to streatch your dollar!
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Save your money - if you do not have a saving account, start one.
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Create a 6 month emergency fund.
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Pay off your debts.
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Eliminate your unnecessary expenses - Cable TV, Gym, dining out, lattes etc...
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Review your monthly bills for areas to cut back on.
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Do not shop to feel better - curb impulse buying. Shop for bargains.
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When purchasing buy only energy efficient items. Items that will save you money.
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When shopping in a super market, stick to your list - do not wander the aisles.
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Return items to the store for a credit that you do not need.
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Plan your auto trips.
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Buy within your means to repay.
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When buying a home, save up your 20% down payment!
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Before buying a home add up all the expenses of owning a home - monthly utilities, maintinence, landscaping, heat, air conditioning, phone bills, water bills, Home owner fees. Canyuou afford them?
Kurt Duffeck
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