I am so guilty of getting caught up in the moment and living for the now! The sun is out, the ocean view looks breath taking – why not go for some wine and sushi by the seaside? You only live once – right?
Right. You do only live once, and you want to make sure that you can in fact live on the not-so-sunny days! We all need to be spontaneous from time to time! But be careful not make a habit of this, as that is how the never-ending loop of overspending starts!
1. Avoiding the truth! If you are avoiding checking your bank account, because the reality of the situation is just too overwhelming, you might be overspending. You need to take charge of the situation and you need to re-visit all your financial commitments. You need to check where the money is going and you need to budget accordingly. Here is a FREE spreadsheet you can download that will be a great starting point.
2. Your paycheck merely passes through your bank account. When your entire paycheck is accounted for before you have even received it, then you know it is time to make some changes! You work hard for your money and there is nothing worse than not being able to enjoy any of it. This is not really a sign that you are living beyond your means, this is living beyond your means.
I don’t have a quick fix, sorry. The truth is you need to cut back. And I know you think you do not have anything that you could possibly be cutting back on, but you do. You could move in with a family member or friend and save on rent. Remove luxuries from your grocery bill, cancel a few subscriptions – or request a pause in payment. Call the banks and check to see if you can get an interest rate review.
3. You play musical banks! What does this even mean? Let me explain, you pay your credit card, you then take that credit card and pay your other credit card. Then you take that credit card and you pay your accounts with them. That is playing musical banks! If this sounds all too familiar, you are in trouble. You think you are paying your bills, but you really just paying the interest and not getting out of the hole you have dug for yourself.
I know it is really hard to move forward and you feel like you have no choice in the matter; but cut those cards up and throw them away! Pay it off and move on!
4. You do not have any savings or a retirement plan. You might think I am being ridiculous, who can think about saving if you don’t even enough to get you through each month! I grew up poor, but I respect the fact that my parents still managed to save for their retirement. Make sure you save in a place where you are unable to easily access your money. Look at retirement annuities or a fixed savings, that only allows you access after a notice period. We still joke about the big bags of Weetbix we lived on!
5. You commit to things, and then stress about how on earth you are going to pay for it. This is so hard as often friends invite us out or we need to go to a birthday or a wedding or some kind of a commitment. Going out means you need to get a gift, an outfit, pay for an Uber or making turns on buying drinks. It just becomes more of a stress than a pleasure! You need to start prioritizing your commitments. Politely decline. You need to start putting your needs first and make those hard decisions, so that in a few months time you can start enjoying your social life, without going into the red.
Bonus tip – SAY NO to your kids! I know it is hard, but they are kids, and they will be absolutely fine without the latest pair of shoes. If it something they really need, go to a factory outlet that normally has 50% off sales. Or make use of something like Black Friday deals! ( Save on holiday gifts for kids! )
Debt and can ruin your life. But you can take charge of the situation and the sooner you do, the sooner you can start enjoying life again! Here are a bunch of books you can download for free ( with a free 30 day trial with Kindle )
MomindaMix 