Money Makeover
Author: Carl Hampton
Author: Carl Hampton
You come home after a long day at work only to find numerous
unwanted bills in your mailbox. As you sift though them, you
start to get that sinking feeling. You know there is no way you
can afford to pay all of them on time. It's at this time that
you remember that you have a vacation coming up and you want to
make the most of it. What you really need now is a money
makeover and this is how you do it.
No makeover is ever complete without a before picture. Take a
financial snapshot, sometimes called a net worth statement.
Imagine you are going to sell everything you own and you are
taking that money to pay off all your debts and normal monthly
expenses like rent, cable and telephone bills. Then count what
is left, if you didn't know what net worth meant before, you
sure will now.
The next step to take is to make a plan. You need to write down
all the steps you need to take to achieve a goal. You're
finances should be reasonable, specific, and realistic. There
should be a time frame for all your goals so that you know that
you can handle all those payments that need to be made.
This step is going to be the most difficult. You really have to
stop spending! That means most if not all those luxuries must
end, the manicure or pedicure, the monthly hair cut, the
shopping every payday, that all has to stop. You are never
going to get financially caught up if you just keep spending!
If and when you do spend, which should only be for necessities
at this point like groceries, keep track of what you spend.
Write down everything, this will give you a good visual like a
monetary blueprint. You might even be able to find ways to cut
corners and save.
And that is ultimately what everyone needs to do. We all need
to save, it never occurs to people that an emergency can come
up and you will need extra money to cover them. Let's say you
need to go to the doctor and it turns out you need surgery. You
need to be able to cover the costs that your insurance coverage
does not and you need to be able to survive for those days you
are recovering and not working. What happens when you get into
a car accident even though it's not your fault? You should have
money on reserve so that you are not digging yourself a hole you
may not be able to get out of. Using credit cards that you
cannot afford to pay off in full at the end of the month is
only delaying the problems.
One way to save is to downsize. If you are struggling with your
mortgage move into a smaller home or an apartment. You could try
renting out a room. Sell what you don't use, unless it's a
family heirloom. I know you probably have a desk, table, or
even computer around the house that doesn't get used at all.
You might have baby clothes that don't fit anymore. You can use
websites like http://ebay.com or http://i-soldit.com or you can
go the more traditional route and have a yard/garage sale. It
will be successful and you will have extra cash in your pocket.
Along the lines of selling, if you have two cars, get rid of the
one you use the least. When you do you will have what seems like
a fortune because you don't have to spend your hard earned money
on the car payments, insurance, registration, and gas.
About The Author: "Your" Money Matters By Carl Hampton From the
Author of "From Credit Despair To Credit Millionaire"
http://www.CarlHampton.com http://www.fcdtcm.com
unwanted bills in your mailbox. As you sift though them, you
start to get that sinking feeling. You know there is no way you
can afford to pay all of them on time. It's at this time that
you remember that you have a vacation coming up and you want to
make the most of it. What you really need now is a money
makeover and this is how you do it.
No makeover is ever complete without a before picture. Take a
financial snapshot, sometimes called a net worth statement.
Imagine you are going to sell everything you own and you are
taking that money to pay off all your debts and normal monthly
expenses like rent, cable and telephone bills. Then count what
is left, if you didn't know what net worth meant before, you
sure will now.
The next step to take is to make a plan. You need to write down
all the steps you need to take to achieve a goal. You're
finances should be reasonable, specific, and realistic. There
should be a time frame for all your goals so that you know that
you can handle all those payments that need to be made.
This step is going to be the most difficult. You really have to
stop spending! That means most if not all those luxuries must
end, the manicure or pedicure, the monthly hair cut, the
shopping every payday, that all has to stop. You are never
going to get financially caught up if you just keep spending!
If and when you do spend, which should only be for necessities
at this point like groceries, keep track of what you spend.
Write down everything, this will give you a good visual like a
monetary blueprint. You might even be able to find ways to cut
corners and save.
And that is ultimately what everyone needs to do. We all need
to save, it never occurs to people that an emergency can come
up and you will need extra money to cover them. Let's say you
need to go to the doctor and it turns out you need surgery. You
need to be able to cover the costs that your insurance coverage
does not and you need to be able to survive for those days you
are recovering and not working. What happens when you get into
a car accident even though it's not your fault? You should have
money on reserve so that you are not digging yourself a hole you
may not be able to get out of. Using credit cards that you
cannot afford to pay off in full at the end of the month is
only delaying the problems.
One way to save is to downsize. If you are struggling with your
mortgage move into a smaller home or an apartment. You could try
renting out a room. Sell what you don't use, unless it's a
family heirloom. I know you probably have a desk, table, or
even computer around the house that doesn't get used at all.
You might have baby clothes that don't fit anymore. You can use
websites like http://ebay.com or http://i-soldit.com or you can
go the more traditional route and have a yard/garage sale. It
will be successful and you will have extra cash in your pocket.
Along the lines of selling, if you have two cars, get rid of the
one you use the least. When you do you will have what seems like
a fortune because you don't have to spend your hard earned money
on the car payments, insurance, registration, and gas.
About The Author: "Your" Money Matters By Carl Hampton From the
Author of "From Credit Despair To Credit Millionaire"
http://www.CarlHampton.com http://www.fcdtcm.com
