In our world of dizzying change, nothing is more true than time honored statement that circumstances always change.No where is this more true than with financial issues.
Have you ever borrowed money, or charged up VISA card at Christmas, all while telling yourself that you would pay everything off with a coming tax refund or bonus?
Sound familiar. And then what happens when bonus money arrives?
Let me guess….circumstances changed, car needed brakes (or kids needed braces, etc), and VISA debt and interest charges keeps piling up.
Unless you have a plan, you will always be caught in unpredictable grip of “changing circumstances.”
This is a slippery slope that can very quickly can become serious financial stress. Consider fact that Americans are declaring bankruptcy at record rates. One in every 100 families is affected by a bankruptcy.
I was on this slope 10 years ago. Declaring personal bankruptcy and filing for divorce went hand in hand.
One of most insiteful moments of process was preparing a written log for trustee of all of our spending for 5 years leading up to bankruptcy.
While all of individual decisions made sense in moments that they were made, they looked totally foolish in context of “bigger picture”
In other words, constantly changing circumstances drove us off our financial roadmap.
Consider this five step plan for getting on, and staying with, your financial roadmap.
Step No. 1: Make a list of what you owe & prioritize: Put all your bills in a pile. Then list your debts in order, starting with largest balance first. Then prioritize your repayments (ie paying down highest interest rate first).