Debt Consolidation

Debt Consolidation

Debt consolidation……does it work?  I would equate debt consolidation to taking the weight loss pill, or that strange diet where all you eat is cabbage.  You know those crazy approaches all of us have tried at some time - did they work?  Most likely they did not.  One of the systems that works is eating right and exercising.   You can keep this up for a lifetime, and thus keep the weight off.

It is the same for debt.  If it goes away in one stroke of a pen, we have not learned the new behaviours or attitudes required to maintain a lifestyle of no debt.  We will gain it all back in the long run.

If you’re freaking out right now wondering how you are going to continue to pay the bills and the debt, it is time to make some changes to your spending patterns.  Look at some of the previous blogs for some tips.  If the wolf is at the door, you may need to consolidate.  Remember, for long term success; work with someone to change your spending patterns.

If you want some assistance to make the changes required, contact Susan at smkbusinessservies@live.ca

All maxed out- some dramatic action to take

 You need to stop carrying the cards with you. You may choose to carry one card for emergencies (like paying the tow truck when your car breaks down), but only if you will not use it for other expenses. Simply not having the option to use your cards will help you to stop using them. Once you have paid them off you may want to close your credit cards. You do not need a credit card because most things can be paid by debit card or cash, even on line.

Make your credit cards hard to access. Freezing them in a big block of ice is really not that bad an idea, but don’t forget to delete the numbers from your on line stores memories, which will make it harder to shop there as well. Save money for an emergency fund, so that you do not need to use your credit cards during an emergency. Until you are out of debt an emergency fund of about $1000.00 should cover most emergencies, and after you are out of debt, an emergency fund of three to six months of expenses should be enough.

Make a plan to get out of debt and stay out of debt. Getting out of debt will free up money so that you can cover your needs, and have money left over for your wants. This is a huge step in getting ahead financially, and you will be amazed at the freedom it affords you.

You will feel better about the future and the opportunity it can have for you. The decreased stress will be great for your personal health and well-being.

You can contact Susan and she will help you put a plan in motion.

smkbusinessservices@live.ca

Forgive Your Money Mistakes

 

Remembering and regretting money mistakes--instead of forgiving and forgetting--can actually hurt your efforts toward financial improvement.  Anger is not a bad emotion; there are no bad emotions.  However, when anger transitions from a response into an ongoing grudge toward something—or even toward yourself—it can destroy any progress you are trying to make in improving a specific area of your life, particularly around money.  Money mistakes are notoriously enduring in people’s minds, and often they find it difficult to forgive themselves or others for mistakes long past.

The problem is that you can never focus on the good things happening in the present is you’re holding on to anger from things that happened in the past. We don’t have to pretend that what happened was okay, just that it has happened and there is something we are supposed to learn. Once we understand that, we can let it go and move on to new growth opportunities and a deeper sense of personal power around our financial life.

From My Mother

You may think this is an odd place to talk about my mother, but there is a connection. My mother just recently passed away, and I’m remembering many of the things she taught me – some of which were about money.

·         Always buy good shoes.  Your feet are your foundation and they need to last a lifetime. She also thought they should look good!

·         Make it if you can.  It’s less expensive, and you get to be creative and build relationships if you do it with others.

·         Go camping.  It’s a good way to build family memories and is affordable.  

·         Save a little, and live well within your means.

·         Pay cash.

·         Spend only what you have on hand.

·         Take time for people, and always have enough around the house to feed whoever shows up. No need to go out.

·         Be a host - do not entertain

Now that I’m older and wiser I understand what she was talking about.

The Struggle Between Happiness and Money

 

What part of the financial world has the most potential to derail a person’s personal finances?  Is it political or economical?  No . . . I believe that the greatest threat to a person’s financial happiness and well-being is ego. Ego is the habitual and compulsive thought process that goes through everybody's mind continuously.  Left unchecked, this constant ego monologue prevents us from focusing on the present moment, and instead we are caught up in worrying about what happens next.  Or what we want to buy next.

Money is often the perceived stumbling block that prevents us from being totally satisfied with our present reality.  The ego wants things in our life to happen a certain way, and a specific image to be presented.  This leads to the belief that if we get the right things, position and status, we’ll be happy.  It maps out a perfect script for us to follow for the perfect life.  Allowing our ego to take over will never bring us closer to financial happiness or acceptance of financial mistakes.  The ego relies on each of us feeling like the donkey with the carrot attached to the stick just a little bit ahead of him.  The ego forces us to focus on the way things should be, and leaves us constantly dissatisfied with current conditions.  Financial happiness depends on our ability to stay present in the moment.  Rather than obsessing on how things are supposed to go, we instead accept that events are unfolding as they are, and use that as our starting point.

There is no specific thing or position that we need to help define who we are in this world, or help us achieve financial happiness.  The moment we let go, we are freed to explore a more affordable life.

 If you would like to work with Susan on a personal financial assessment contact her at 250-808-3214 or at smkbusinessservices@live.ca