Personal Finance Problem
How Is Your Finances?
Hello everyone, here I am once again and, this time, I would like to write about a very important topic that is affecting millions of American and billions of people worldwide. Can you guess what is it? If you guessed "Money Management" or "Personal Finance", you guessed right.
Did you know that financial problem is the number one cause of divorce among couple in the US? So, is this a topic worth writing about? Sure it is!
Financial problem is also one of the leading factors to cause stress which, on the other hand, can deteriorate one's health.
So, how is your personal finance? Are you in financial debt? Are you spending more than what you earn? Are you going through financial difficulties? Is your creditors chasing your down, harassing you constantly?
If you are going through financial troubles don't go so hard on yourself, you're not alone, in fact, millions of Americans in deep financial trouble and, just so you know, I currently find myself in the same boat but, that's not what I want to talk about it, in fact, my goal here is to share some ideas that will help you take control of your finances, improve your relationship and reduce stress.
Dealing with your financial problem:
Instead of feeling sorry for yourself, think about your past decisions that brought you into financial debt and admit that you are in financial trouble and, something must be done about it, cause, your financial freedom or your family's financial freedom depends on it.
Once you accept the fact that you are in financial troubles, you should make a decision to seriously take charge of your financials and, stop living beyond your means.
Dealing With My Financial Problem:
Allow me to share with you how's my personal finance and what I am doing to fix it up.
I work for the same company for almost six years now, I hold a management position and, until six months ago, I was making pretty good salary plus bonus over the company's overall profits, however, things changed drastically, now, our company is going through hard time, we have lost a lot of business and, we haven't made enough to hit the company's monthly budget, consequently, I haven't made bonus for the past six months.
During this same time, I have been using my savings to pay bills, mortgages and, all sorts of bills that we all have every month. I was going through terrible stress and, not being able to come up with additional income, I began losing nights of sleeps which, also began affecting my emotional and motivational level at home and workplace. And, the worst of all, I was feeling really sorry for myself and, therefore, I began blaming the government and the world for my financial problems.
But everything changed about three weeks ago when I went to a conference commonly known as: "GET MOTIVATED", during this conference, I heard to 8 or 10 famous people giving speeches about different topics related to one's success in life, accountability, taking control of your financial life and so on, this conference lasted 8 hours and, at the end of the day, I felt very motivated, excited about my life and decided to take control of it.
In the following week I went to another conference and, this last one was organized by a well known investiment organization in my State, this conference lasted three days and they covered different aspects of a successful life, how to become financially independent and so on.
To make this story short, I decided that I would no longer feel sorry for myself, that I wouldn't blame other people for the results of my own past decisions and, that I need to change the course of my life.
Over the past weekend I have worked extensively on my personal finance, I have checked all my bills, I have created a budget and, I have balanced my income statement.
Once I did that, I realized that I was in deeper trouble that I once believed but, still, I didn't feel sorry for my situation, I did got concerned because, honestly, I didn't know how I was going to solve such a mess but, even though, the situation was really severe, I didn't give up on fixing it.
Today is Wednesday (6/23/10) and I feel much more optimistic about my financial future, why? Because slowly, I am finding ways to resolve it and, allow me to share some of it with you.
I put all the large bills aside from the small ones, I calculated how much I was spending Vs. how much I am making, this exercise, helped me find out how much money I needed to make or the expenses that I needed to reduce just to break-even.
Once I finished with that, I realized that, in order to make a bigger impact on a short run, I needed to find a solution to my larger debts, so, I decided that the best thing to do was to contact my creditors and open my heart to them and, ask for their help.
That was exactly what I did, I called each one of my creditors and said: "I work for my company for 6 years now and, the business has dropped drastically, because of that, I have lost half of my income which is cause terrible financial burden to my family, you know that I have always paying on time and that happened because I was using my savings to fulfill with my obligations, however, I no longer have such option, so, I am calling you today because I need you to understand my situation and I need you work with me, I am willing to continue paying my bills on time but, I can not pay the current amount, so, I need you to work with me to make that possible.
If you tell me that there's nothing that you can do for me, than, I will simply stop paying the bills because, I have a family to support and they come first on my list of priorities."
I share with them other concerns other concerns that I had and, so far, the outcome has been very positive.
I am currently working with my mortgage company which already told me that, they will reduce my monthly payment for six months and, then, they will help me refinance my mortgage or do whatever is available to help me reduce my monthly payments permanently. They know that I always paid on time, they believed in me and they are willing to work with me.
I have contacted my student loan company, they also agreed to reduce my monthly payment by half for 12 months.
I am working with my bank to reduce my auto loan and so on.
So, in conclusion, if you take charge of your financials and contact your creditors, be real with them, be honest and hold your ground when negotiating with them, they will find a way to help you, they will prefer to collect something which is better than nothing.
When Dealing with your financial problem, follow this advices:
1 - Reduce your expenses.
2 - Find additional income.
3 - Find a long-term solution.
4 - Work with your creditors.
5 - Remember your priorities.