Posts Tagged ‘Debt’
Every month, your bank account gets smaller, and you don't know where the money is going. You never seem to have enough to cover the bills, and there are more surprise expenses lurking around every corner. Are you frustrated, scared, and don't know where to turn for help? Do you need a miracle?
You can have one, and it is your power to give yourself. If there is one thing you could do right now that would drastically turn around your financial situation it is to make and follow a budget.
38 Miracles a Budget Can Do for You:
If you had enough money, you’d feel better about yourself right? Not necessarily. Many times, I have found that my coaching clients use money to actually lower their self-esteem. It’s not often recognized as a tool we use to reflect the way we feel about ourselves.
You use money to lower your self-esteem…
- Keep increasing your debt.
- Spend money to relieve your guilty feelings.
- Forget to appreciate what you do have.
- Get angry with yourself over past financial mistakes.
Debt can be a vicious cycle. We start the debt cycle by finding a way to JUSTIFY adding on new debt. (See the previous blog to find out more details about What Causes a Debt Cycle?)
Here are 11 Symptoms You’re Stuck in a Debt Cycle…
- Have little or no savings, investments, or assets.
- Add new debt right after one debt is paid off.
- Have several credit cards.
- Borrow money to pay off credit cards.
- Put very little money down and set up a longer repayment period to reduce the monthly amount.
Debt can be a vicious cycle. We start the debt cycle by finding a way to JUSTIFY adding on new debt.
Ways we JUSTIFY Adding on New Debt-
1 To rectify our past mistakes.
(Example: You got in a fender bender by not paying attention and you need to fix your bumper.)
2 To reward ourselves.
(Example: You’ve lost weight so you deserve to buy a new outfit.)
3 To get rid of the old debt.
(Example: Taking out a second mortgage to pay off credit cards.)
Albert Einstein said, “The significant problems we have cannot be solved at the same level of thinking with which we created them.” In other words, if money is the problem, throwing more money at it is not the solution. Another example is, we cannot get out of debt by taking on more loans. We’re just simply delaying the answer.
It’s been a bad day. The kids were fighting and missed the bus, the car got dinged in the parking lot, the boss yelled at you for being late again, you realize you left your lunch on the counter, and just then your computer crashes. What else could go wrong? You need something to lift your spirits. Then, you see that just perfect… whatever… Out comes the credit card and IT is yours – ah! Now you feel better, right?