Half the Battle

A few years ago, one of my adult daughters came to me asking for financial advice. She and her hubby were struggling to make ends meet. I asked her about all her debts–balances, payments, etc. I also asked her how much they made, and she wasn’t sure. Although her husband received regular paychecks, she dealt mostly in cash because she was a food server. I gave her the task of logging how much cash she took home each day she worked. Cell phones are great for things like that. 

Well, two weeks later she told me they’d paid off $600 in consumer debt. Yeah, $600, and in only two weeks! As it turns out, they were better off than they thought they were. The only thing they did differently was to track what was coming in. This enabled them, in turn, to decide where it would go instead of just spending the cash they had on hand.

Sometimes just finding out where you stand can alleviate a great deal of anxiety and stress. There are many people who just don’t want to know how many creditors they really have or how much money they owe, and they figuratively (and probably wish they could, at times, literally) bury their heads in the sand.

Start gathering all the debt statements that are filling up your mailbox and get a piece of paper and calculator ready. You can use something basic–like a spiral-bound notebook–if you’d like. Amazon does carry an inexpensive, easy-to-follow book specific to this task (search Amazon for You Can Make Your Money Behave: Go ahead...I dare you! By U. Will B. Rich…yes, I’m serious); it’s perfectly aligned with all the methods I am sharing.

It’s time to take the first step to gain control. Will it be uncomfortable? Yes, but like labor pains, it will be worth it and it will eventually come to an end.