When it comes to a weak economy and your finances, the safest and easiest thing to do is SIMPLIFY. As an organizer, I find these 'hard times' to be a blessing in disguise. It is during these 'hard times' that people are reminded that less IS more. Right now our country is cutting back and spending LESS, shopping LESS, and driving LESS. Instead, we are looking for ways to save MORE, create MORE, and live MORE. Simplify your life, your finances, your relationships, and your family for maximum enjoyment and a sense of peace and order.
In order to survive this weak economy, one needs to have their life in order, particularly their finances. Review these 6 steps to 'recession proof' your finances.
1. Look at the True Cost of Your Debt Most people think the opposite of debt is wealth. Actually, the opposite of debt is no debt. A life with no debt is where you live within your means and where you don't lie to yourself about how much money you have. It is a life of reality, a place where you don't pretend that you can afford things that you can't. Pinpoint your financial lies and begin being honest about the true cost of your debt.
2. Explore Your Limits Limits, we all have. However, some may stay within their limits more than others. In life we are given a limited amount of; space in our homes, time, and energy. We are also given limits on our credit cards. If you have reached your credit card's maximum limit, you may also be maxing out the time and energy it takes to generate money to pay bills. Recognize your limits and stick to them. Credit card debt can rob you of your financial power. Take control of your power and leave your credit card at home.
3. Assess Your Spending Habits Look at your spending habits. What are you exactly spending your money on? Where is your pursuit of having 'more' taking over your life; robbing you of true happiness? "More" could be shopping for clothes, electronics, and gadgets. "More" could also be eating out at restaurants, buying duplicate items at the grocery store, or shopping at Target on a Friday because there is nothing else to do. Just as one would create a 'food journal' to document everything consumed in one day when analyzing caloric, fiber, and sugar intake, one should also create a 'spending journal' to properly analyze where the money is being spent and on what.
4. Necessities vs. Luxuries It seems today people are confusing luxuries for necessities. For example, do children really NEED a cell phone? Or is it a luxury item for the child and a convenience for the parent? With our country striving to obtain more and more material items, adults and children are experiencing a struggle comprehending the difference between a necessity and a luxury. Determine which of the necessities in your life that you need to bring joy, happiness, and comfort for you and your family. Then pinpoint the luxuries that are adding stress to your bank account and eliminate them.
5. Happiness - What's it Cost? Happiness is about being in balance. When your finances are not in order or you are drowning in debt, your life is not in balance. Being in balance means your spirit, head, and heart are working together (on the same page) to create a life of happiness that you desire. Release the stress of trying to live beyond your means and accept the realities of your current financial life. First, make the effort to create a budget /spending plan and at the same time take the appropriate steps to eliminate your debt. Then create a Financial Freedom jar in your home and deposit 5% - 10% of your income into every time you get paid. At the same time, you will create a Long-Term Savings for Spending jar, Giving jar, Fun Funds jar, and maybe even a Vacation Fund jar or Education Fund jar. Again, make a deposit of 5% - 10% of your income into EACH jar every time you get paid. Begin managing your money now. If you only have a dollar, manage that dollar. These actions will increase to your 'happiness account'.
6. Creating Order Once you've organized your finances, begun to eliminate debt, and analyzed your spending habits, your life will take on a different focus-the "stuff" loses its importance. Think about the simple pleasures you want for your home, your life, and your family and how less can be more. Cutting down on the influx of stuff will immediately translate into spending less money. Your home is a reflection of you, your life, your goals, your values, and your relationships. Consuming less improves your lifestyle. Having a home that is in order reflects a life of financial control and a life without debt.
Grace Brooke
Organizing Consultant and Speaker
http://www.YourEfficiencySpecialist.com
http://www.yourefficiencyspecialist.wordpress.com
