Personal Finance Battles

With the right steps, anyone can overcome their personal finance battles. We’ve all been there, struggling at some point either with living paycheck to paycheck, too many bills, or unexpected expenses that caused us setbacks.

Statistics show that about 60% of Americans live paycheck to paycheck, and that includes those making six figures or more.  So if the amount of money, or lack thereof, is not the thing that contributes to financial problems, what is?

The answer lies in three core areas:

• Lack of a budget
• Lack of savings
• Too much debt

But there is hope and by taking the right steps, you can win your financial battle.

Budget

Budgeting gets a bad rap for lots of reasons.   It’s too restrictive, too time consuming, I don’t make enough money, I make too much money, and the list goes on and on.  But the benefits outweigh any objections, and a budget can lead to less stress, fear and worry about your financial conditions.

As mentioned earlier, it doesn’t matter what the income level, amount of debt, or the other factors are, everyone faces challenges when it comes to their money.   And the # 1 thing that can help you get a handle on your finances is establishing a budget.  Without a budget, your money manages you & your lifestyle, but a budget allows you to take control and tell your money what it’s job is.

A budget allows you to set and achieve financial goals like paying off debt, retirement planning, and establishing savings.  It allows you to improve your money management skills because you can see where your money is going, prevent waste & redirect funds to the other core areas that will put you in control of your finances.

Even with factors like inflation or a recession impacting the value of the dollar, having a budget in place can help you better navigate through those challenges.

Savings

Over 50% of Americans don’t have an emergency fund to cover unexpected expenses, and over 60% say they couldn’t cover a month’s worth of living expenses due to income loss.

Whether it’s an inconvenient emergency, or a dramatic event like a job loss, the only way to combat life events is to adequately plan and save so that when those types of events occur, it’s less painful.

But saving is hard or impossible, you may say.   Although that can be true, a budget goes a long way to help you consistently save and build your nest egg so that when financial emergencies come up, you’re prepared.

Initially the minimum emergency fund everyone should have is $1000, or $500 if you make less than $25K.  Budgeting and eliminating debt enables you to focus on saving 3 – 6 months of living expenses. This financial cushion will minimize the impacts of job loss, major health event, or other financial setbacks.

Debt

If you’re like me I always thought that debt was a lifestyle that could not be avoided.  Big ticket items require financing, right?   That’s what I thought, but after years of struggling financially, and reaching the point of being sick and tired, I found a better way.

Thanks to financial money management class, and the desire & commitment to change our situation, the hard work paid off for us.  Taking the right steps can also pay off for you, even if you don’t see a light at the end of the tunnel right now.

Some of the keys to overcoming debt is to have a budget, implementing the debt snowball method, and a sinking fund for large items like car purchases.  All of these things enable you to purchase things without going into debt, and there is freedom in that.  As scripture says:

The rich rules over the poor, and the borrower is the slave of the lender.  – ESV

If debt has you in financial bondage, there is hope and a way out.

Summary

If you struggle in any area financially, I’d love to talk with you and see how I can help you win your personal finance battle. Schedule Complimentary Consultation today.