Money problems

I have a saying: “If you have money problems…money is the least of your problems.” Let me be very clear that I say this not with judgment but with over 50 years of experience! The majority of us have faced money challenges in the past. Some of us are still facing them, and some of us will face them again in the future.

So what is it about money issues that seems to keep showing up? I can tell you after several close calls: I’ve learned how very little needs to happen to end up being completely homeless. At your first thought of a homeless person, what do you imagine? A dirty, raggedy clothed person living under a bridge pushing a shopping cart full of junk? Well, stop for a moment and consider what it took for that person to get to where they are. Without knowing them personally, I am sure we can agree they probably didn’t aspire to one day be homeless. So how did their circumstances change to the point where their world has narrowed itself down to a shopping cart full of junk?

Most of us live with quite a delicate balance of resources, and If that balance gets tipped far enough one way or the other, it can change everything. Losing a job at just the wrong time, an unexpected illness or injury, divorce…and a long list of other financial killers. Next thing you know…you have WAY too many things that need to be paid and very little or sometimes even NO MONEY. While there are plenty of reasons why and how this happens, there are also the ones that could possibly be avoided. It certainly shouldn’t be anything to feel shame over, although our natural human emotions kick in and tell us we failed. But considering how common of an issue this is, it seems like some people are simply better skilled at hiding their situation than others. So here are a few suggestions I’ve compiled and want to share:

1. Know you are not alone – we all go through tough times, so don’t turn your back on help from others. We all need help when we are wounded.
2. Cut down the number of payments you make – by spreading yourself thin, paying things down takes much longer and interest eats you up.
3. Stop buying on credit – I compare this to licking your chapped lips. “While it feels good for the moment, it will just be worse later.”
4. Big purchases – Bloated interest rates, longer terms and “no payments til_____” make it “easy” to buy things we never knew we needed. This only favors the lender, and will cost you tremendously at some point.
5. Invest – this is hard to visualize when you’re already broke, but even if it is a few dollars a month, it adds up. As painful as investing is, it never gets easier or cheaper.
6. Additional source of revenue – Do you need another job? A side job? Sell something you don’t use? Offer a service to someone?
7. Build equity – Never borrow money against things you’ve invested in like a Home, 401k or Savings. Once you put that money in, pretend it doesn’t even exist any more.
8. Abandon hope for those cash windfalls – Lotteries, Rich Uncles passing away and million dollar gold deals from Africa are as likely to happen as..well…just don’t plan on those.
9. Do you really need a car? Some people do, but Uber has changed things quite a bit. See what you vehicle payment+gas+repairs+registrations cost per month vs. Uber. (If you drive Uber, of course you’ll need to keep your car!)
10. Plan it – plan everything, have a budget and limit extracurricular activities. This includes the morning stop to Starbucks too!  (ouch)

Although this isn’t a one-size-fits-all remedy, there might be some things in the list you could get behind. Debt is something YOU have to manage or IT will manage you…and that ain’t fun. Commit to keeping it under control. Take advantages of opportunities to get ahead. If you are ahead one month, don’t put that cash on something new or splurge convincing yourself that you deserved it by being good. Instead, anything left over needs to be put towards some investment. Our society has a hard time with this. We are advertised to all day with the message of “it’s okay: you deserve it” and it is easy for THEM to tell you this; they’re the ones going to bed with pockets of your hard earned money. Rather than spending on the “little things” remind yourself of the turtle and the rabbit running the race. It’s small things we do on a consistent basis that make large differences in the future. But if you constantly let it slip through your fingers, there will be no water in your hands when you get thirsty.

A new mindset and healthy financial habits will surely make a difference in how your finances affect your future. Just remember: you could be one mere paycheck away from homelessness. Don’t be caught off guard. Have a separate account or a safe in your house where you keep enough money to get you through a couple of months if an emergency comes up.

And no matter how “down” you are, getting your mind off of YOU and doing something for someone else is always a great way to go. There is something very therapeutic in helping others.