(ThyBlackMan.com) Without a plan in place from the start and learning to separate your needs from your wants, eventually finances become an issue. However, with a little discipline and recognition, you can change course and develop a happy relationship with money.
Life happens and when you spend your money on spontaneous purchases rather than saving for the future, you have no means for anything that comes along unexpectedly. Having a baby or suddenly losing a job are just a few of the things that can upset your delicate balance and throw you into chaos with your bills. The first thing to suffer is your credit, and then ultimately, your way of life.
The good news is that even though you may take a temporary hit on your credit score, you can recover and restore your finances to a level that sustains a sudden hit. The trick is simple: you must be responsible and patient. Being responsible means that your bills are the first things you pay each month. This comes before you reward yourself with a new gadget, furniture or other large item. As a rule,
you should have at least three months reserve saved. While this may seem as though it’s a lifetime away, it really is not if you take a small portion of your check and put it away as if you never received it. This is your emergency fund.
To get started, you have to be willing to make temporary sacrifices. Make a list of your monthly bills on a sheet of paper and then draft a list of weekly expenses such as gas, food, school and so on. Calculate all of your monthly income and subtract the amount of bills and expenses from this total. What you have left is what you can use to pay down debt faster and create a savings, otherwise known as your emergency fund.
If you have the income to support your bills but an unexpected expense threw you off budget, you should be able to pick up the pieces and get back on track within a short time. If, however, once you list the expenses and income, you find that you have more going out than coming in you are going to have to make some changes.
Changes can be as simple as clipping coupons to save on groceries, or eliminating or reducing things on your expense list. For example, using coupons and shopping for sales at a few different stores can significantly cut costs on food. Taking the bus if you travel to work, and brown bagging instead of eating out are both positive ways that can help you stay ahead of your finances and keep a high credit score that will benefit you in the future. If you are way beyond any quick fix, you can take on a second job to offset the deficit until you pay down the outstanding debt. You can often gain inspiration from people all over the world. For example, check out Vicki’s credit story with her encounter with creditrepair.com, her story will give you the motivation to overcome anything.
Life brings twists and turns, bumps and bruises that come with handling money and credit matters. With a little patience and practice, you can move forward and achieve the quality of life you deserve.
Staff Writer; Corey Brown