Finances And How To Survive

By Bob Tremerituus

In these difficult, some may say harsh, economic times, it’s more important than ever to be careful when it comes to one’s own finances.

Many of us have borrowed and spent heavily in recent times, when times were good, but many now feel that they may have bitten off more than they can chew. How good would it be to establish control over one’s finances again and not have the continual worry and stress as you await that next credit card bill to drop through the post?

It’s easy to get carried away when times are good, but the problem is that we don’t consider the possibility that our finacial situation may change for the worse. Peer pressure does not help, many of us like to give the impression to our friends that we are well off; a facade that is difficult to maintain when the icy wind of change starts to blow.

Whilst this has an effect on one’s pride, one has to consider practicality over vanity. To feel secure in one’s finances is surely better than keeping to a false pretence?

Banks have taken a very tough line on lending these days, so there’s no guarantee that they will be of much help should you find yourself in a financial crisis such as losing your job. One measure you can instigate to act as security against the consequences of this happening is to have the equivalent of 6 months salary saved, as this is a figure that it thought to be sufficient to see you through, and even if it’s not, the bank will be more prepared to lend money if you have some saved should you need it.

Saving money is not something that many people like to do, as the temptation to spend it on the latest gadget or going out clubbing is strong, and at least we have had something to “show” for it, rather than just stashing it away. Even if we do save, when we see a sizeable sum in our savings account there is the temptation not just to spend it all, but also to overspend a little here and there, and by doing this, erode the amount we hold in the bank.

Mental attitude is often what prevents us adopting a safety first approach, in many things in life. However, this can be most common in our attitudes to saving, we see it as something negative, something that when done, has decreased our amount of disposable cash, and is therfore stopping us doing those things we want to do. Particularly in todays “must have” society, the word is spending, not saving. However, with a little bit of mental adjustment this perception can change. Focus on seeing saving as something that provides security. For example, imagine what it would be like to be a street sleeper. Treat saving as a way to avoid that situation. Associate cosy images in your mind with saving – it doesn’t happen overnight, but with practice you will find your perception changes.

As you work on changing your ideas on saving, you will begin not only to see the benefits and actually do it, you will start to get the same satisfaction from saving as you do with spending.

Keeping a grip on your finances is so vital. However, for a few, things can become too much and they have to look at the unpleasant step of bankruptcy. If you need further free information on declaring yourself bankrupt, please visit www.declaringyourselfbankrupt.org

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Topics: Bankruptcy | Comments Off

Tags: asset sale, Bankruptcy, destitute, Finance, going broke, Legal, liquidation

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