Information is really power, and the highest example that we can think of is your finances. You’re going to find a lot of people that really do want to see you get the best information possible. However, it’s going to be up to you to make sure that you use that information to your advantage. Sure, there’s going to be times where you’re going to be really frustrated and you’re going to want a lot more answers than what people are going to want to give you. Knowing where to start is half the battle — the other half comes from taking action and having the courage to do something different.
Far too often people feel like debt is inevitable and once you have it, it’s impossible to get out of debt. It’s impossible to change your life. It’s impossible to move to a point where you don’t have to worry about the debt anymore. The truth here is that you really just need to have the right attitude. Think about your financial goals and what you actually want to accomplish with your life. If you’re someone that really doesn’t want to make too many changes, then you just need to make sure that you think about your goals. Are your dreams and goals worth it? Then you’re going to need to make some change sin order to get there.
First and foremost, what you are going to have to do is get clear answers about your finances. You want to ask how much money you have in checking. How much in savings, how much in the investing accounts…everything, really. It’s tempting to run from your debts and your assets because you might have more debts than assets, but that’s okay. Like we said earlier — things can always change.
You want to pull your credit file at least once a year as the advice usually goes, however we strongly suggest that you make it a little more frequent than that. Yes, it’s going to mean that you will have to spend a little money but in the long run, this is definitely worth it.
You also want to make sure that you are looking at what is actually leaving your house. Do you even save your receipts? Balance your checkbook? Use those starter checks from your bank or credit card company? Do you take out loans and not really keep track of how often you’ve rolled the loan over? These are all questions that you need to use in order to push forward and really make sure that you think about the future from start to finish. Sure it’s a topic that nobody really wants to think about, but in the long run — getting clear answers about your financial life is really the beginning.
Once you get the right information, you can actually build an action plant hat works. If you only have a vague idea of how much you make, how much you spend, and how much you owe, you’re never going to get anywhere too quickly.
Don’t forget — now is definitely the time to take action, so don’t delay!