Getting Back on the Financial Wagon

By: Martin Lukac
Submitted: 2007-01-17 16:17:39
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There are many people out there that really try to clean up their finances, but they just don't get it done. The repeat budgeters sit and figure out budgets just to abandon them within the month. They may do this several times in an effort to find something that works.

Others really try to tell you that they are changing their finances. They will get out of debt as soon as they get a raise or a bonus or life slows down.

I feel bad. Because I know for most of these people, it won't all come together. Not until they hit rock bottom and decide to make a real change in their lives.

But I'm not saying that the best of the financial managers and budget masters don't fall of the financial wagon every now and then. It is easy. There are just things that are so very tempting.

And there are a lot of bumps in the road that seem to be smoothed out with a credit card.

When you've been there before, the guilt is a lot worse. Sometimes we just make bad decisions. It is part of life. You just have to find a way back on the wagon. Take responsibility. Say that you knew better. And pay for what you have done.

Then make a change. This time you will know how easy it is to fall off, so you will hopefully be more cautious. Remember what you've been through.

Take the time to keep looking at your priorities. It is easy to stop doing this when your finances are in good order. But if you stop, you will often slip back into old ways of thinking. Hey, we have plenty of money. One little thing charged on the credit card won't hurt anything.

But it will. Because that is how it started the first time around. Take the time to keep yourself going where you should be. I know that it sounds so money-focused, but money is important in your life. You need it for retirement. You need it to survive. How much you need depends on you. How much you want depends on you. You have to make the choices. And get back on the wagon.

Start all over again with creating a budget that works for you. Ask yourself what made you go off of your perfect plan? Did you splurge on a large ticket item, or was it little spending over time? Should you revise your budget to help include more for yourself? Was it a one-time thing or has it built up over time?

Look at where you are in regards to your goals. Perhaps your goals have changed over time. See if you are going in the right direction.

If you have amassed new debt, take the time to get rid of it. Devote as much as you can to paying it off as quickly as possible. I really hate to tell you to touch your savings, because that seems like a quick fix. Depending on how much you have, often it is better to make yourself sacrifice a bit to pay it all back off. Cut your spending in other areas to make up the difference. Keep putting money in savings and towards your debt if possible. Not the best advice financially (many say get rid of the debt at the cost of your savings to pay less interest), but emotionally and psychologically, it might work.

Remember why you want to even bother with managing your money. Are you looking forward to an early retirement? Do you like the idea of having money in the bank? How are you going to get there?

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