Consumer
appetites are man-made. Our competitive free enterprise system
produces unlimited goods and services to stimulate our desire to
want more convenience and luxuries. Careless and selfish uses cause
us to live in financial bondage. When we sidestep the common sense
of financial wellness, when we have lost self-restraint and self-discipline,
and have attained an addictive attitude of spending as if there
were a bottomless pit, we enter economic slavery. If we think we
need designer clothes, a larger home with a three-car garage with
the newest car, a recreational vehicle parked next to it, extra
large TV sets all with VCRs, and the latest model computer, then
we caught up in the conditioning of instant gratification. Often
these items of desire are purchased with borrowed money, and without
giving any thought to providing for future needs. The result of
all this instant gratification is overloaded bankruptcy courts
and families that are far too preoccupied with their financial
burdens to look beyond survival.
Financial wellness is about moving out of and beyond economic slavery.
It requires us to examine our feelings about money--its perceived
value to its actual value so that we may reshape the way we feel.
Once we examine our emotionally based perceptions in more detail
behind the reasons why we buy things, we find that currency is
about the personal value we place on it. Take out the emotional
component and we can perceive that currency is simply an exchange
of energy.
For those
who feel they could manage their money in better ways read about Money
Management, checkpoints for getting out
of debtand recommended
reading.
How
important are money management and finances in partnerships
and family affairs? Tremendously! Some professional counselors
indicate that four out of five families are strapped with
serious money problems. The American Bar Association recently
indicated that 89 percent of all divorces could be traced
to quarrels, clashes and accusations over money. These marriage
tragedies are not caused simply by lack of money, but rather
by the mismanagement of personal finances. Peace, contentment,
love, and security in the home are not possible when financial
anxiety and bickering prevails. When couples share financial
responsibilities through engaging in open communication,
determining reasonable expectations and limits, cooperating
in the budgeting process, and eliminating and avoiding debt,
they can become free from the devastating debt trap and enjoy
greater peace of mind and harmony in their homes. |
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Money management
should take precedence over money productivity. It is wise to
take a look at a prospective partner’s money management
sense. In the home, money management between two the partners
should be on a partnership basis, with both sharing a voice in
decision and home policy making. If there are children that reach
the age of accountability, they, too, should be involved in money
concerns on a limited partnership basis. Family unity comes from
saving together for a common, jointly approved purpose. Money
management skills should be learned together in a spirit of cooperation
and love on a continuing basis.
Once the
stranglehold of excessive debt is loosened and eliminated, life
brightens, homes become more harmonious, and families are freed
from financial bondage and thus more able to focus on truly important
concerns.
So,
how do we get out of economic slavery in a monetary system that
controls everything? What steps can be taken immediately that
would begin the process of reducing debt, increasing savings
and living more simply? Take a look below: Agree
to Budget and Solutions
for Surviving the Economic Downfall of America
Agree
to Budget & Live Differently
Acquiring
information and advice about how to manage or invest our
money is easy. The trick is to act on the information, to
do something that improves your life and the lives of those
you love. That's what wielding the energy of money is all
about. ~Maria Nemeth
Budgeting
is a plan that helps people make the best use of their income
and savings.
• Distinguish
between wants and needs. Realistic, workable budgets
result when couples agree to provide carefully for
their needs and to exercise self-discipline and patience
as they seek to provide for some of their wants.
• Most
families can reduce some of their expenditures with
a little resourcefulness and accountability. Begin
budgeting by listing all expenditures from several
previous months. Determine where the money went and
which expenditures were unnecessary and which were
necessary. Then decide what you can do yourself like:
washing & ironing clothes instead of using a
dry cleaner, growing your own food to offset rising
food prices & GMO pesticide foods, install solar
panels, efficent appliances, and rain barrels to
water plants, plant shrubs to keep home cool and
convert lawn and landscaping using xeriscaping.
• Budget
for other set expenses, such as rent or mortgage,
utilities, food, clothing, debt reduction, and transportation.
By carefully analyzing past months’ spending,
you can obtain a realistic idea of how much to allot
for each item. When buying clothes, get rid of old
clothes that don't fit or are worn and donate or
sell them at a second hand store. Don't accumulate!!!
• Pay
yourself first! Put money aside in a savings program
after necessary expenses have been budgeted. Starting
both a short-and long-term savings program can help
you meet unplanned emergencies as well as provide
for future major expenses.
• Budgets
should be flexible, if not they usually fail. Allot
personal spending money that need not be accounted
for.
• Take
into account affordable recreation and allow for
some spontaneity- the unplanned diversions or for
items that are a part of joyful living.
• Use
a regular portion of income to prepare for future
needs.
The
following four checkpoints can help determine the get-out-of-debt
progress:
Checkpoint 1: Commit to
live on less than you earn and budget money
for debt elimination and savings.
Goal: create a detailed
plan for debt reduction, writing down target
dates for compliance.
Checkpoint 2: Implement
your debt elimination plan while continuing
to live on a controlled budget. One method
involves taking money that has already been
budgeted for paying off debt and committing
not to use that money for any other purpose
until all debt is paid off, and also agreeing
not to acquire any new debt. Double the
payment of the smallest loan in order to
speed up payback. When the smallest debt
is paid off, apply that payment to the next
largest debt until it is paid off; then
continue on until every debt is paid in
full. Goal: Accumulate
savings and pay off all debt at this point
with the exception of a home mortgage.
Checkpoint 3: Continue living
on a controlled budget and, if it will not
burden your family financially or in any
other adverse way, begin working toward elimination
of the house mortgage. Doing so can save
you thousands of dollars in interest charges
on your mortgage. There are several ways
you can approach this goal without going
to extremes, such as taking on extra jobs.
Implementing any system will help speed up
the process of becoming a debt-free home
owner. Ultimate goal: Become
completely debt free, including the mortgage.
Checkpoint 4: Continue living
on a controlled budget, acquire no new debt,
and begin acceleration of savings and retirement
programs. Goal: acquire
sufficient retirement savings and remain
free of any debt. |
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