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Money
Makeover
You come home after a long
day at work only to find numerous unwanted bills in your
mailbox. As you sift though them, you start to get that
sinking feeling. You know there is no way you can afford
to pay all of them on time. It's at this time that you
remember that you have a vacation coming up and you want
to make the most of it. What you really need now is a
money makeover and this is how you do it.
No makeover is ever complete without a before
picture. Take a financial snapshot, sometimes called a
net worth statement. Imagine you are going to sell
everything you own and you are taking that money to pay
off all your debts and normal monthly expenses like
rent, cable and telephone bills. Then count what is
left, if you didn't know what net worth meant before,
you sure will now.
The next step to take is to make a plan. You need to
write down all the steps you need to take to achieve a
goal. You're finances should be reasonable, specific,
and realistic. There should be a time frame for all your
goals so that you know that you can handle all those
payments that need to be made.
This step is going to be the most difficult. You
really have to stop spending! That means most if not all
those luxuries must end, the manicure or pedicure, the
monthly hair cut, the shopping every payday, that all
has to stop. You are never going to get financially
caught up if you just keep spending!
If and when you do spend, which should only be for
necessities at this point like groceries, keep track of
what you spend. Write down everything, this will give
you a good visual like a monetary blueprint. You might
even be able to find ways to cut corners and save.
And that is ultimately what everyone needs to do. We
all need to save, it never occurs to people that an
emergency can come up and you will need extra money to
cover them. Let’s say you need to go to the doctor and
it turns out you need surgery. You need to be able to
cover the costs that your insurance coverage does not
and you need to be able to survive for those days you
are recovering and not working. What happens when you
get into a car accident even though it's not your fault?
You should have money on reserve so that you are not
digging yourself a hole you may not be able to get out
of. Using credit cards that you cannot afford to pay off
in full at the end of the month is only delaying the
problems.
One way to save is to downsize. If you are struggling
with your mortgage move into a smaller home or an
apartment. You could try renting out a room. Sell what
you don't use, unless it's a family heirloom. I know you
probably have a desk, table, or even computer around the
house that doesn't get used at all. You might have baby
clothes that don't fit anymore. You can use websites
like ebay.com or i-soldit.com or you can go the more
traditional route and have a yard/garage sale. It will
be successful and you will have extra cash in your
pocket. Along the lines of selling, if you have two
cars, get rid of the one you use the least. When you do
you will have what seems like a fortune because you
don't have to spend your hard earned money on the car
payments, insurance, registration, and gas.
Let's Get Started, We Are Eager To Serve You!
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