Show Me The Money – Financial Fitness
Tell me – as you read the topic for today, what was your first emotional reaction? Dread? Fear? A cold feeling in the pit of your stomach? A sigh of relief because your finances are in order?
Money is SUCH an emotional topic. It’s one of the top stressors in most people’s lives. So why is this part of the February Be Your Own Valentine Challenge? Because financial fitness ranks right up there with your physical/emotional/mental fitness. Feeling comfortable and confident about where you stand financially can create incredible peace in your life. But where to begin?
Take a deep breath. Find about an hour of uninterrupted time. Grab a pencil and some paper. Now…
As scary as it might seem, get real with yourself by finding out your financial worth. What is in your wallet? What is the balance of your checkbook? Your savings account? How much are your home and car worth? Do you have a 401k plan? Any other assets or investments? Tally all these assets and figure out the full balance.
Next step: Look at your credit card debt. How much is the balance of each credit card? How much is the monthly interest rate on each card? Do the same for your car payment, if you have one. If you have school loans, figure out the balances there as well, and interest rate. Any other outstanding debts? Tally all these debts and figure out the full balance.
Welcome to reality, Valentine. Maybe it’s not as bad as you thought (relief). Maybe it’s not as good as you thought (groan). Maybe you feel totally swallowed up and overwhelmed (tears and an urge to throw up). But there is good news! NOW YOU KNOW AND THE ONLY PLACE TO GO IS UP!!! It’s just like getting up the courage to step on the scale. You may not like the immediate results, but it gives you the information you need to create a game plan to turn those results around and reach your ideal number! KNOWLEDGE IS POWER, and on that paper are the numbers from which you will powerfully climb out of debt and build your wealth.
What happens now? Well, you have a variety of resources for assistance. Go to your local bank – often they have someone who can work with you. If you have an employee assistance program where you work, you can possibly find a financial counselor. Two resources I have personally used in the past are Crown Financial Ministries (crown.org) and Dave Ramsey (www.daveramsey.com). Both have (free) financial calculators that can help you figure out how to pay down your debt, and budget tools. Please note I have no partnership/connection with either business nor am I an affiliate of any kind or receive any kind of financial compensation for mentioning them. I’m simply letting you know that I used their website information in the past. I have also read Dave Ramsey’s book, Total Money Makeover, which I personally found helpful. I’m not even using my Amazon affiliate link here for the book – you can find it online or, better yet, check it out from your local library for free!
I am the last of the financial geniuses or wealth advisors, and have struggled with (and survived) years of overwhelming debt caused by poor financial choices. Do allow me to share two pieces of advice from two ladies I love and admire – my Mom and my best friend. Mom once told me to save something every single paycheck, even if it’s only a few dollars. And a little thing I do now is to try and save any $5 bills I get instead of spending them. Tuck them away, and believe me, you’d be surprised how that little bit can add up. Secondly, my best friend once told me one of her best friends was compound interest! LOL! Armed with those tidbits, you may consider tucking away as much as you can each paycheck. It may not seem like much now, but in time (and with compound interest) that seed money has the potential to grow and flourish.
Don’t be embarrassed or ashamed if you are in debt, and don’t procrastinate on learning your financial health status. What’s done is done, but today is a new day, a fresh start towards financial health and freedom. You are strong and courageous, Valentine, you can do this!
Blessings,
Linda
Learning to be smart with money is tough. But, being in debt is tougher.
Truly, think each purchase through, and make an intelligent decision. Decide if you ‘want’. something or if you ‘need’ something; i.e., you need to get a new tire to replace the tire that went flat; you want that new pair of shoes to add to the collect of toooo many shoes already–its not hard; just stop and consider what you are doing with your money.
Linda, thanks for addressing this extremely important topic—BFF