Overwhelming debt is crushing too many families
Without a budget and the right spending management tools do don’t really know how much money you’re really spending, do you? While the electronic age is making it easier to accomplish tasks, it’s also forcing more and more people into a downward spiral when it comes to their finances. Sure, having access to your money with a quick swipe of a card, whether it’s a debit card, check card or credit card, is great but it make keeping track of your spending much more difficult. Convenient spending, monthly access fees & service charges add up to one devastating reality – overspending, and through our experiences haven’t we all found that when you overspend once, it’s easier to do it again, and again, and again?
According to a recent article on CityNews.ca, more then 25% of Canadians are carrying $10,000 - $40,000 in credit card debt alone, and as Julie Sturgeon of BankRate.com points out “Americans between the ages of 25 and 34 now boast the second-highest rate of bankruptcy…”
The question is, what can be done? How do we prevent ourselves from overspending, then relying on family, friends, loans and credit to climb out of the hole? The answer (simple, yet not easy) is to budget, keep a close eye on your incoming and outgoing money and live within your means.
Always easier said then done, isn’t it? I came across an inspiring story on MoneySense.com entitled “How we paid off our house in three years”. This couple, Perry and Tiffany Goertzen worked hard, saved hard and reaped the rewards. Now, I know the specific route that they took may not be an ideal situation for most (ie: working multiple jobs consuming 90% of your day) but their story shows that with some determination, dedication and a plan (okay, a lot of determination) it is possible to achieve financial freedom.
I could tell you to save 10% of your paycheck, repeat the key elements to living within your means or tell you how building a budget, but that would be redundant wouldn’t it? There’s only one real secret to managing your money, discipline. It’s all about knowing what you want and focusing on it. If you want to buy a house and you need to save $20,000 for a down payment, wait before you buy that digital camera because;
a) the digital camera will still be there next year, and
b) it’ll be much more gratifying to take pictures of your new house.
Set your goal, build your budget, make a plan and get what you want. The Money Case will get you one step closer to your dream
Tags: debt, money stress
