Financial Issues
The car needs repair, your child needs braces... and the bills just keep streaming in. Everyone has financial concerns, but not everyone handles them the same way. Some people learn to handle money and practice good money management. Some rely on loans, which only worsens debt. Still others do nothing, thinking the problem will go away or fix itself.
Financial problems can occur overnight or over a period of time. Whatever the situation, financial problems can affect your entire well being. They create undue stress, depression, mood swings and constant worry. Being fearful of collectors can make opening mail or answering the phone difficult. Anxiety and tension from worrying about debt commonly lead to physical ailments, such as as chronic headaches or cardiovascular problems. A loss of appetite and sleep deprivation also can occur.
Financial problems affect not only you but also your family. Children notice when something is wrong. Communication with you family won't solve your problems, but it will help put your situation into perspective and alleviate your family's fears about their safety and security.
Financial problems can also take a toll in the workplace. Your performance can be hampered because your concentration and organization are compromised. Job-related stresses combined with financial difficulties can cause short tempers and irritability.
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Tips For Better Money Management
The best way to prevent financial problems is to follow a budget and watch spending closely. Here are some tips that may help to improve money management skills:
1. Develop a household budget - and stick to it. Make a list of household expenses by category, such as "car payment", "home mortgage", "utilities", "food." Your total expenses should not exceed your total monthly take-home pay. If they do, find ways to reduce what you spend. For example, look for less expensive car insurance, make fewer long distance calls, bring your lunch to work, etc.
2. Pay yourself first. When developing a household budget, don't forget to set aside money for savings.
3. Shop wisely. One rule of thumb is "Buy what you NEED, not what you WANT." Buy used instead of new. Use coupons and compare prices to save.
4. Don't rely on overtime pay. If overtime pay is cut or no longer available, your expenses will exceed take-home pay. Put overtime pay into savings instead.
5. Check bank statements. Always check financial statements for errors that may cost you money.
6. Own, don't rent. A rent payment is someone else's income. Home ownership should be your goal. You'll have tax advantages and can watch your investment grow. (This applies to rent-to-own appliances, too. You may pay more than the value of the appliance when you pay rent towards ownership.)
7. Limit use of credit cards. If you include the cost of interest in credit card purchases, everything you buy costs more if you don't pay the balance each month. It also pays to shop for the best credit card - the card with the lowest interest rate and preferably no monthly fee.
8. Don't gamble money away. State lotteries, casinos and bingo halls attract customers with the potential of big winnings. But the odds of losing far outweigh your chance of winning.
Reading Suggestions:
Financial Peace by Dave Ramsey An easy read about a millionaire who has gained and lost many times, and finally learned how to get ahead and stay out of debt. A simple, effective strategy for everyone to use. Christian orientation. - Alice Reynolds, EAP Counselor
How to Get Out of Debt, Stay Out of Debt & Live Prosperously by Jerold Mundis
For further information, please link to:
Consumer Info on Reverse Mortgages from the National Center for Home Equity Conversion
