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...

Monday's Entrepreneur: Donna J. Potter

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from J. S. Aikens.

We often hear about the cost of “doing business” but how often do you consider the cost of a career?  For Donna J. Potter, the cost of her “well paying” career was too high.  As a paralegal who was working 12 – 13 hours a day she was told rather than consulted about her schedule.  Donna describes her career as “very political” and “not a good fit”.  Too often she had to rely on family members to help with daily parental tasks as simple as picking her children up from daycare.  Her family was young and some days she was just too exhausted to be a parent

Mrs. Potter felt stuck and trapped. Like most families they required both her and her husband’s incomes. Though she wanted to quit her job, it covered a substantial portion of the family’s living expenses.  In the midst of her inner turmoil she witnessed the more balanced lifestyle of her two brothers.  They were both entrepreneurs and enjoying the personal freedom she longed for.  One of her brothers owned a delivery company and the other ran an online business as well as a ministry. Donna had come to the realization that no amount of money was worth her personal freedom.

Donna’s opportunity to create the life she wanted came in a form that the average employee dreads. The company she was working for merged with another law firm.  As a result of this merger, staff cuts and layoffs ensued.  Many of her colleagues were praying that their jobs would be spared.  One person even had an anxiety attack.  As the day wore on, Donna found herself becoming depressed because she felt that she might be kept on staff. When she was called in to speak with one of the partners, he was reluctant to let her go. Donna, however, felt that her “prayers had been answered”.  She accepted the severance pay and benefits and used that time to look for a home based business.

That was nine years ago. In that time Donna J. Potter has created a substantial stream of income in a company that supports her passion – health and wellness. The "It Works" Body Applicator Contour System” she markets has remarkable internal and external results. When asked about the pros and cons of entrepreneurship she shared a perspective that could be seen as both.  “When you are in business for yourself there is no one you have to be accountable to.”  It is important that the same discipline, commitment, and application of your skill-set that you are committing to someone else, is applied to your own business.

If you are considering stepping into the world of the self-employed individual, Donna shared three prerequisites:
1. have the discipline to follow through for yourself
2. find your passion because all money is not good money
3. be a people person.

Donna can be reached via email shrinkfatwrap@gmail.com Find out more about this amazing product at http://www.myitworkswebinar.com  “Ultimately”, Donna says, “once you help enough people get what they want, you’ll get what you want.”