UPDATE: The Breakdown: Defeating That Pile of Billls

As I wrote about in my previous two posts, tackling your finances after a major life interruption can be very intimidating. I admit, I'm extremely intimidated and frustrated with myself for letting all the work I did previously disappear and ending back where I started.

So, I sat down with my notebook and my piles of bills and called the necessities: electric, gas, cable, water.

To my surprise, things weren't as bad as I thought. I woke up today with much less anxiety and it's because I stopped avoiding the mess and dealt with it head on. I still have medical bills and some taxes I need to take care of but home is taken care of.

I wanted to share my small victory. This is what this financial journey us about. Small victories. Small victories add up.

Next, I am planning to address my budget...or lack of a budget....

Until next time...

The Breakdown: Defeating That Pile of Billls

Breaking out of your funk can be intimidating.

In my last post, I outlined what needs to be done. I realized simply following those tips is way easier said than done. I realized this when thinking of my own situation. I'm intimidated. If I am, I know you are too. To lower some of that anxiety, I have decided to break down each step more. More information is always better than less. My hope is to let us all know...we got this!

I have been sitting looking at my pile of now opened, sorted, and written down bills and am feeling intimidated. I'll admit, this pile is scary. Knowing that everything in it needs my attention. Knowing that I owe money to each of those bills. It's all intimidating.

So, let's start at the beginning. Opening those bills.

Grab that pile and take a seat. Make piles. Trash. Bills. Other. That's all you have to do, first. Even if you know it is a bill, open it. Open everything.

Throw the trash out, that's probably a huge part of your pile. You have bills and other important mail left. If you aren't too overwhelmed (take a break if you are. Even if you come back to it a day or 2 later.) get a notebook (a notebook specifically for getting your finances back on track) to make notes on each bill. Write down how much you owe, contact information, any other important information. You can put them in order by when they are due or by how much you owe, but make sure you make a list that makes sense to you. This is the start of getting organized.

In your finances notebook is now a list of things you need to address. You have started your plan.

Next, we will look at your current spending to see where you can open up money to start attacking your financial mess.

Until next time...

Sometimes Life Happens...

I started this blog what seems like a lifetime ago. I wanted to share financial tips that I was learning myself and help people reach Financial Independence...but...sometimes life happens and what you have planned for doesn't happen. You get side tracked by a death or an illness or losing your job.

Things happen. Your life might be falling apart, but something you don't realize at the time is that you are most likely neglecting your finances along with what your dealing with. When you make it through your storm and try to return to normal you realize that pile of bills you have been ignoring are bills.

Now you are starting all over financially. You know all the right things to do. You remember the lessons you learned. You know what you need to do.

First thing you do...is open those bills. 

You can't fix the problem if you don't just jump in and see how bad it is. It might not be as bad as you think. Put the bills in piles according to what they are. Get a notebook and write everything down. Putting it on paper helps me to get organized. I'm a list maker. If lists don't work for you...find something that does. Piles. Baskets. Envelopes. Whatever works for you. 

Then put everything in order from the lowest to the highest. Plan to pay the little bills first.

Next, start planning. Look at your bank statements. Look at your current spending. Start a budget. Make a list of your expenses. The plan is forming now. You have a list of what you owe due to, life. You have a list of your expenses. 

I know it looks overwhelming, but you got this!

Now, go through your bank statement and put all your spending into categories to find out where you can cut back to pay off some debts. Make the categories: Essentials, like rent, car note, electric, etc.; Extras; like eating out and entertainment; Savings; you may not have a savings yet but you will.

Take your list of what you spend and breakdown things like eating out and shopping. You can cut these back or even out. You will be surprised to see how much you spending eating out. This category is usually much higher than people anticipate. 

Finally, you can make a budget. 

Budget for the Essentials first. Then, based on what you spend on food and your situation, add Extras to your budget. Your budget will change, so don't be discouraged when if you have trouble meeting every item on your budget. Overtime, your budget will change and eventually become something that you can, realistically, stick too. Make sure that you budget something to go to savings every month or pay day. I use an online savings account and have automatic deposits set each month. This way it is not something I have to consciously do.  

Don't let your current situation stop you from achieving a better life. One step at a time and before you know it your situation will have changed, if you develop a plan and stick to it. 

Until next time...

The Definite Dozen and Personal Finance

Anyone who knows me knows I am a huge basketball fan. I can watch anyone play and spend time just watching and analyzing, with the ocassional "OH!" or "Right there!" when I see something on the court that might lead to a basket for either team.

I was reading an article about my favorite basketball coach - college, NBA, WNBA - Pat Summit is it. If you know anything about Pat Summitt and The University of Tennessee Lady Vols, you know the school, coach, and players (past, present, and future) are synonimus with success. What makes Summitt and the Lady Vols so successful is their dedication to hard work. Summitt has the ability to reach each player in a different way to get the best of out them.

Look a little closer and see that when she breaks a player down and builds them back up, this is essentially the same as unlearning bad financial habits and building a repouritre of good financial skills. You wont win a National Championship, but you WILL reach YOUR financial independence.

Summitt emphasizes the "Definite Dozen" - a list of principles that EVERY Lady Vol must adhear to.

These principles are used not only to mold her student-athletes into better basketball players, but more importantly good people.


What does Pat Summitt have to do with finance?

Nothing, on the surface.

But let's take a look at these principles in terms of personal finance and see the connections ...

1. Respect yourself and others - Respect yourself and your money enough to know your worth. This knowledge and respect of your financial situation forces you to treat your finances and yourself as if you deserved the world...because you do!

2. Take full responsibility - We all make mistakes, financial or otherwise, in life. One thing we don't usually want to do is admit our mistakes. But like they say in Alcoholics Anonymous, the first step is admitting the problem. You messed up, so what. We all mess up. Take responsibility for wasting the money you needed to pay the electric bill on a new outfit. You got caught up in the moment, it's ok. Now you know what you did wrong and can fix it for the future.

3. Develop and demonstrate loyalty - Loyalty to yourself and your money. Being loyal means you treat yourself and your money accordingly. You know what you want out of your life and you focus on it, respect your dreams and your goals and don't let anything stop you. Things will come up but be loyal to your plan and stay on task.

4. Learn to be a great communicator - Being able to communicate what you believe to be worth in your employment choices or your relationship. This allows you to be smarter financially and make your money work for you.

5. Discipline yourself so no one else has to - Discipline is one of the 3 D's to Financial Independence we teach. We all have aspects of our lives we lack discipline at, and our finances happen to be an area we lack discipline. When you have financial discipline you have control your life. You have the discipline has allowed you to better manage your. To have enough money saved to be comfortable about emergencies popping up. To be in a good financial situation during retirement. To have the ability to take vacations, buy things you want. To work the type of job you want to work, not the one you have to work. Discipline prepares you for all of this and ensures that you don't mess it up too badly.

6. Make hard work your passion - Make the decision to work as hard as possible to get the life you want, and sit back and relax. I have a set of things I am aiming to make happen and preparing for if it doesn't. If you are in debt, sell your used items; work extra hours or get a part time job; start a business; use your skills to create extra income.

7. Don’t just work hard, work smart - Make your money work for you, but make it work in the smartest way possible. Automate your savings. Build an Emergency Fund. Save for what you want. Budget your money. Smarter, not harder.

8. Put the team before yourself - Put yourself before anyone or anything else. Most personal finance experts preach paying yourself first. this means taking a set amount of your pay and putting it into savings of some type, typically an Emergency Fund. Your needs should be met before you meet anyones wants. You are the only one who truly cares about your money, start putting yourself first.

9. Make winning an attitude - Attitude and money go hand in hand. Having the attitude that nothing is going to stop you from your goals will ensure that you will "win" or be financially independent sooner or at all. Life has its financial ups and downs, you have to rid out the bad times and prepare during the good times.

10. Be a competitor - I dont know about this one. Competing with others financially is a recipe for failure. Competing with yourself is a better way to be competitive. Make saving a game and reward yourself for meeting your goals.

11. Change is a must - CHANGE is a big part of becoming financially independent. You MUST change the habits that have kept you in a cycle of, well, not having any money. Educate yourself. Reach out for help. Make the necessary changes.

12. Handle success like you handle failure - Life has many lessons for us, some personal, some financial, some job related. Learn from what works for you and what doesn't.

I love the Tennessee Lady Vols because of Pat Summit. Her passion, her ability to take any group of girls and be competitive, her championship reputation. Pat's Definite Dozen can apply to anything in life, try applying them to your financial life and see how life changes for you.

You wont win one of these....

But you will earn this....

What do you think?

New Year's Resolutions Don't Last But Planning Does

Every year we all make New Year's resolutions and every year those resolutions last about as long as a Kim Kardasian marriage (cheap shot..I know I know...but everyone else is doing it...).

One of the most common resolutions, is becoming financially stable. Being financially stable is something we all want but don't know exactly how to get there. We have all the excuses. We don't want to do the work. We don't want to sacrifice for for the short-term to better the long-term. We get distracted by something shinny. We let life's road bumps stop us instead of working our way over them.  

We want what we want and we want it now.

The only problem is becoming financially stable takes the 3 D's...dedication, determination, and discipline. And a little planning for emergencies and the future.

It seems like a lot...and it is. But anyone can set a goal or resolution to become financially independent, as long as they are ready to take that first step.

What is the first step is to really want to be financially stable enough to make the necessary changes in life. That's easy: making up your mind that you are ready for the journey. Going into a resolution such as this, that would change your entire life, requires a huge amount of the 3 D's. If your not completely ready to make the needed life changes, how can you succeed?

The 3 D's are the backbone of PLANNING YOUR WORK. Planning is the most important part of any goal, especially financial goals. When making a resolution or goal, the best approach is to sit down and figure out what is and is not working. Make a plan to fix what isn't, and to continue or improve what is working. Then, you get to work!

Personal Finance 4 The People is here to help you set and reach your goals! We offer services such as debt reduction/management, savings education, money coaching, credit education, help seeking employment, financial literacy, pretty much anything you need that will help you to better your life.

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