How to solve financial Problems.
In financial trouble? Don't know what to do? Need help because you don't know where to start? This lens is about getting people to first think about and then help with financial problems. I'll include videos as I find them as well tips and useful links to other sites.
The whole idea has arisen from seeing more and more people running in all sorts of problems when running out of money. Charities like the salvation army finding it harder to cope with the ever increasing demand for their services.
I'm not saying I have all the answers, but would like to think that I and anyone else, who has got any suggestions, can take some of the pressure of charities, by pointing out some simple points on what people them self can achieve to get out of financial trouble.
The whole idea has arisen from seeing more and more people running in all sorts of problems when running out of money. Charities like the salvation army finding it harder to cope with the ever increasing demand for their services.
I'm not saying I have all the answers, but would like to think that I and anyone else, who has got any suggestions, can take some of the pressure of charities, by pointing out some simple points on what people them self can achieve to get out of financial trouble.
Why?
This is a very simple question.
I was watching the news yesterday and I saw a single working mum with 2 teenagers struggling to make ends meet. Many times over the past, I don't know how many years, have I thought about this topic. When we go back 100 years or so, if you didn't work you didn't eat. How did our parents and grand parents survive?
In modern society, with welfare systems set up to help the not so well off in our community, it was hoped to lessen the impact on the less fortunate members of our community.
Unfortunately there is always a number of people which will abuse the system and there is not a lot we can do about it. This lens is written for people which like to break away from the dependents of welfare and live a happy and fulfilled life.
In modern society, with welfare systems set up to help the not so well off in our community, it was hoped to lessen the impact on the less fortunate members of our community.
Unfortunately there is always a number of people which will abuse the system and there is not a lot we can do about it. This lens is written for people which like to break away from the dependents of welfare and live a happy and fulfilled life.
Why did you run into financial trouble?
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Before we begin
Some points i like to make
There is a saying it goes something like this:
If you earn $100 and you spend $90 = happiness
If you earn $100 and you spend $110 = misery
You may have landed here because for whatever reason you ended up with the later.
Now you have got 3 simple options:
1) Increase your income
2) decrease your spending
3) do a bit of both
Now some of you may say all my problems would be fixed if I won tattslotto. Most people would even agree with you and so would I. But, and many people don't understand this part, in most cases you would be worse of.
Before you bite my head off and call me all sort of names let me explain why
A few years back I would have totally agreed with you. Not so long ago I read an article on what it meant for people to have big and life changing wins. A high proportion of winners were worse of within around a year or so.
That got me thinking on to why would this happen.
The reason is very simple and that is people change to a much higher lifestyle without learning the first part of the equation mentioned on the top of this segment. They spending $110.
If you earn $100 and you spend $90 = happiness
If you earn $100 and you spend $110 = misery
You may have landed here because for whatever reason you ended up with the later.
Now you have got 3 simple options:
1) Increase your income
2) decrease your spending
3) do a bit of both
Now some of you may say all my problems would be fixed if I won tattslotto. Most people would even agree with you and so would I. But, and many people don't understand this part, in most cases you would be worse of.
Before you bite my head off and call me all sort of names let me explain why
A few years back I would have totally agreed with you. Not so long ago I read an article on what it meant for people to have big and life changing wins. A high proportion of winners were worse of within around a year or so.
That got me thinking on to why would this happen.
The reason is very simple and that is people change to a much higher lifestyle without learning the first part of the equation mentioned on the top of this segment. They spending $110.
Time and /or money
You need to start somewhere
As mentioned earlier, there is only 3 ways to change your financial situation around.
1) increase your income
2) decrease what you spend
3) a mixture of both.
I would think that the 2nd point is most likely the easier way to start with, but in order to do something about our spending habits we need to know what we spend our money on.
1) write down all the money you need to spend on repaying loans( house, cars and others) and credit cards.
2) write down all the money you need to spend on insurance (house, content, car and others), utilities (gas , power, water, rates and others)
and phone, internet and alike.
3) if you have kids all the schooling fees or pre-school fees
Another important point is to know how much money you have at any one time. This makes you more aware of where you up to.
1) increase your income
2) decrease what you spend
3) a mixture of both.
I would think that the 2nd point is most likely the easier way to start with, but in order to do something about our spending habits we need to know what we spend our money on.
1) write down all the money you need to spend on repaying loans( house, cars and others) and credit cards.
2) write down all the money you need to spend on insurance (house, content, car and others), utilities (gas , power, water, rates and others)
and phone, internet and alike.
3) if you have kids all the schooling fees or pre-school fees
Another important point is to know how much money you have at any one time. This makes you more aware of where you up to.
Possible options to look at
Consolidating Debt
This involes adding up all your debts ( loans, credit cards, i o u's) to get a clear picture where you at.
Consolidating your debts means you have only one payment and it is a lot easier to manage then trying to pay off multible debts.
The best possible way is to get an extenstion on your home loan or a refinance on it. The reason is that it most likely the lowest interest rate you are paying right now.
The earlier you speak to someone when you have run into trouble, the easier it is to do something about. Think about the stress and sleepless nights you may encounter, by not dealing with early.
Consolidating your debts means you have only one payment and it is a lot easier to manage then trying to pay off multible debts.
The best possible way is to get an extenstion on your home loan or a refinance on it. The reason is that it most likely the lowest interest rate you are paying right now.
The earlier you speak to someone when you have run into trouble, the easier it is to do something about. Think about the stress and sleepless nights you may encounter, by not dealing with early.
Have you got a budget?
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Budget
What is it?
This is where most people stumble, because they think you need to be a bookkeeper or an accountant in order to understand how to budget.
You can make it as complicated as you like or make it very simple.
A simple way is to just get a single piece of paper and write down what bills have come in and how much they were. Include your shopping as a bill as well and don't forget the other little things you spend money on. Take a notepad and a pen with you so you can write it down as you go. Don't rely on your memory. When you finished for the day just transfer what's on the notepad to your piece of paper.
Have a second piece of paper and write down what money has come in.
You can have a piece of paper for every week or every month and I suggest the later be the better option. If you want you can divide the paper into 4 parts one for each week. I suggest you have a small exercise book and keep it handy with a pen.
If you do this for say 3 month you will get an idea on how much you spend every week and month and see how much money is coming in. Now you should see a small pattern appear and you can start to plan a little better.
You can make it as complicated as you like or make it very simple.
A simple way is to just get a single piece of paper and write down what bills have come in and how much they were. Include your shopping as a bill as well and don't forget the other little things you spend money on. Take a notepad and a pen with you so you can write it down as you go. Don't rely on your memory. When you finished for the day just transfer what's on the notepad to your piece of paper.
Have a second piece of paper and write down what money has come in.
You can have a piece of paper for every week or every month and I suggest the later be the better option. If you want you can divide the paper into 4 parts one for each week. I suggest you have a small exercise book and keep it handy with a pen.
If you do this for say 3 month you will get an idea on how much you spend every week and month and see how much money is coming in. Now you should see a small pattern appear and you can start to plan a little better.
Video on basic budgeting
This is a good video clip to get you started if you don't know where to start.
He is using a computer and a number of columns which you don't necessarily need, but to give you an idea of what you can add when you get more comfortable with this whole process.
This is a nice short video and it may help.
I'll be looking for more video clips to add here to give you choices.
He is using a computer and a number of columns which you don't necessarily need, but to give you an idea of what you can add when you get more comfortable with this whole process.
This is a nice short video and it may help.
I'll be looking for more video clips to add here to give you choices.
curated content from YouTube
Simple Tips on where to save money
Now we know what we have got money wise we move on
After having gone through all that trouble of writing out a budget, we now can look at different ways on how to save money. I'll put up a list of measures on how to save and where.
5 Simple Tips to save money around the house
This is a good video on ideas which may help to find money to make life easier
16 Parts of small video clips
Part 1
It is well worth you while to take the time to have a look, even if you don't need any help. You don't need to watch them all in one go either and come back as many times as you like. Take it in small doses.
This is the first first part of a series of short video clips on budgeting and money management. Just put your mouse over the picture to see which video clip it is and select which one you want.
Video clip 1:Introduction to Budgeting Video Series
Watch this free online budgeting workshop to learn how you can build your own successful family budget. Follow along using the workbook and resources found Here (Everything can be downloaded for free.)
Video clip 2:How to Make a Budget
"Budgeting is a 4-Letter Word: How to Build a Spending Plan that Works on Any Income." Many people assume that they know what a budget is. What does the word budget mean to you?
Video clip 3:What is a Budget?
The word budget means different things to different people. For some, limitations come to mind, but for others, a budget means freedom.
Video clip 4:The Biggest Budgeting Mistake
Forgetting to save for certain types of expenses is the biggest mistake many people make. Set yourself up for success and learn what you need to include in a successful plan! This is a very good lesson and you can work on this to get better. The more you try the easier it should become and more control comes back into your life
Video clip 5:Why Bother Budgeting Money?
You know what it feels like to worry about your money, but knowing what's in it for you if you're good with your money makes it easier to stick to your plan. Budgets really do make a difference!
This is the first first part of a series of short video clips on budgeting and money management. Just put your mouse over the picture to see which video clip it is and select which one you want.
Video clip 1:Introduction to Budgeting Video Series
Watch this free online budgeting workshop to learn how you can build your own successful family budget. Follow along using the workbook and resources found Here (Everything can be downloaded for free.)
Video clip 2:How to Make a Budget
"Budgeting is a 4-Letter Word: How to Build a Spending Plan that Works on Any Income." Many people assume that they know what a budget is. What does the word budget mean to you?
Video clip 3:What is a Budget?
The word budget means different things to different people. For some, limitations come to mind, but for others, a budget means freedom.
Video clip 4:The Biggest Budgeting Mistake
Forgetting to save for certain types of expenses is the biggest mistake many people make. Set yourself up for success and learn what you need to include in a successful plan! This is a very good lesson and you can work on this to get better. The more you try the easier it should become and more control comes back into your life
Video clip 5:Why Bother Budgeting Money?
You know what it feels like to worry about your money, but knowing what's in it for you if you're good with your money makes it easier to stick to your plan. Budgets really do make a difference!
Extra Income
Where can that come from?
Now you may say that all I have talked about is budgeting and saving, but what about increasing income.
Now I assume that you already work 40 hours a week. There are only 168 hours in a week. Add 49hours (7hours sleep X 7 days) that takes care of 89 hours. Usually you have to add travel time to and from work and time after you get up and get ready say add another 10 hours. That brings you to close to 100 hours.
I know it still leaves you the weekend to work and that is fine if you want to be a zombie or don't like your partner and kids. What sort of life is that.
You could go and get a better paying job or work more overtime, but believe me in most cases you will be worse off in the long run. It is somewhat ironic that most people do the same thing over and over and expecting a different outcome and complain about it.
It is very simple if you want change YOU need to do something different.
Now I assume that you already work 40 hours a week. There are only 168 hours in a week. Add 49hours (7hours sleep X 7 days) that takes care of 89 hours. Usually you have to add travel time to and from work and time after you get up and get ready say add another 10 hours. That brings you to close to 100 hours.
I know it still leaves you the weekend to work and that is fine if you want to be a zombie or don't like your partner and kids. What sort of life is that.
You could go and get a better paying job or work more overtime, but believe me in most cases you will be worse off in the long run. It is somewhat ironic that most people do the same thing over and over and expecting a different outcome and complain about it.
It is very simple if you want change YOU need to do something different.
Other helpful sites for you to browse
I picked a few sites which should help to teaching your kids about money, so they don't get into trouble in the first place.
Helpful books in order to help
How to budget News
- Budgeting Tips For Different Income Brackets
- (For more tips, check out Budgeting When You're Broke.) For those in the middle income bracket, building assets becomes an important goal. Day-to-day bills are covered and saving becomes a priority for housing, children's education and retirement.
- S.F. acts wisely on police, fire budgeting
- Few city services are more basic or critical than police and fire fighting. That's why Mayor Ed Lee is right to shore up the ranks of the two vital public safety departments in next year's budget. Thanks to the city's resurgent economy - marked by ...
- City school budgeting: Yes, it is crazy
- Elected leaders need to take their budgeting responsibilities more seriously. And public employee unions need to stop viewing taxpayers as unlimited reserves of ready cash to be tapped annualy like maple trees.
Did this help you at all
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Feel free to leave any comments
If you got a story on how to get out of trouble, please contact me and I'll include it here. There is nothing better then hearing from other peoplewho done it them self.
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Ladyeaglefeather
Mar 18, 2012 @ 1:12 pm | delete
- Great lens, I think, it could help everyone.
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SquidooPower
Dec 18, 2011 @ 1:50 pm | delete
- Love this lens. I come from Adelaide, myself, but am based in the States now. Good to see other Aussies on Squidoo.
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mihgasper
Dec 15, 2011 @ 5:12 pm | delete
- Well done, thumbs up!
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seelya83
Nov 19, 2011 @ 9:23 pm | delete
- really informative great thinking easy to grasp great job.
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Kids and Money
This may help Adults as well
Budgeting
The Everything Budgeting Book: Practical advice for spending less, increasing savings, and having more money for the things you really want (Everything Series)
Amazon Price: $4.97 (as of 06/01/2012)
This is a very basic budgeting book for anyone.
