Want to get ahead financially?

I’m not talking about getting wealthy here although that could happen.  I’m talking about just getting your head above water.

The problem is that we overcommit ourselves financially.  We buy and buy and buy most of it on credit cards and soon the ocean of debt we create gets too deep.

We have to stand on our financial tippy-toes just to keep ourselves from drowning.

Eventually, we start wondering if maybe we’ve gone too far because the situation seems dangerous as if we might not be able to keep it all afloat for much longer.  This can be scary.  If you’ve felt this and want to change, then let me throw you a life preserver.

The Financial Riptide Pulling You Out to Sea

When the economy was good, it was much easier to live a indulgent lifestyle.  Money and loans flowed freely.  However, due to the financial slump we’ve seen that seems to keep hanging on forever, many people are finding it very difficult to survive.

Here is what is working against you (January 2011 figures):

• Unemployment rate in the U.S. is 9.8%
• The average duration of unemployment is 35 weeks or about 8 months
• 35.9 million (or more than 10%) of Americans live below the poverty line
• Average credit card debt in the U.S. is $14,750

All of this swirls together to form a financial riptide that can suck you far away from safety.

I don’t mean to be so negative, but it is important to properly recognize the situation so you can take action to save yourself.  If you deny the truth or just ignore it, you may drift beyond rescue.

Getting and Keeping Your Head Above Water

I want to assure you hope is not lost.  I am 100% sure that you can get your head above water and keep it there.  Even if you are in deep, you can break free from the riptide that is pulling you out to sea and pull off a complete financial recovery.

You can do this without the help of any debt reduction or consolidation services.  Most of these are scams that you want to avoid.  All of what they do (assuming they do anything except take more of your money), you can do yourself and it won’t cost you a dime.

Here are the basic steps:

1.  Get on a Budget

What I’m talking about here is not a restriction of spending.  The kind of budget I’m talking about is a plan.  One where you consciously decide how to use your money every month to get the most out of it.  Your budget should direct your money to your most important priorities.  A good budget can really improve your life and it is an essential tool to help you get your head above water.

2.  Pay Down Your Debt

To save yourself financially, it is crucial that you start paying down your debt.  If you look at what is sucking you dry every month, it is likely all the payments you are making to pay credit cards, car loans and home equity lines of credit.  You have to reclaim this money to create financial margin.  You need to create margin between what you make and what you owe.  This is your financial strength that you want to reclaim.

3.  Create an Emergency Fund

One of the ways that we start sinking financially is by constantly funding “emergencies”.  When you have no spending plan or budget, then every new expense is an emergency.  One that you don’t have the money to pay.  Therefore, you pay with credit which is the financial equivalent of digging your own grave.  The solution to this dilemma is establishing a personal finance emergency fund.  This will keep you from sinking further into debt.

The above three steps are what I consider the three most crucial things you can do to save yourself.  If you do these, then you will be well on your way to a personal economic recovery.

Don’t Drown Without Putting Up a Fight

Far too many people go down to the financial bottom without ever even putting up a fight.  They get caught in the riptide of unemployment, poverty and debt never realizing they can break free.  I hope you will not be one of these victims.  The tips above can save you.  They are fundamental strategies that when used are powerful means to get your head above water.

Are you struggling to keep your head above water?  What are you doing to save yourself?  Leave a comment below and let me know your thoughts.

Photo: Copyright PhotoXpress.com

There is always room for improvement in everyone’s life.  However, we usually handcuff ourselves in some way which prevents us from moving on to that higher place.

What is it for you?  Do you know?

You have to learn to untangle yourself from whatever it is so you can begin to enjoy a more fulfilling life.

The things that tie us up and keep us from living life to the fullest aren’t always obvious, but they are there.  Some things are more subtle and hidden than others. 

You may think your bad habits are harmless, but if they are holding you back from improving your life, then they need to be broken.

Set Yourself Free to Live a Better Life

For whether it be a strong wire rope or a slender and delicate thread that holds the bird, it matters not, if it really holds it fast; for, until the cord be broken the bird cannot fly.
~ Saint John of the Cross

Are you like a bird tied down by a piece of thread so that you cannot fly?  Again, I’ll ask, what is holding you back from a better life?  For most of us, it is simply a thread.  A small bad habit that ties us down.  For others, it might be a strong addiction that acts like a wire rope or chain.  Either way, you need to break it and set yourself free.  I want to help you identify your thread and how to untie it.

20 Things that Hold Us Back and How to Break Free

Here are some common things that entangle us and keep us from living life to the fullest.  Clicking the links in this list will take you to articles that will help you break free.

1.  Denial

The first step in breaking free is recognizing and admitting that you have something holding you back.  Denial is a huge issue that we have to overcome before we can even begin to be free.  Denial is an insidious master that often goes unnoticed.  I recommend reading Living in Denial: Don’t Let Your Inner Pig Win to see if you have an issue with denial in your life.

2.  Fear

Fear is often the thread holding us back from living life to the fullest.  There are all kinds of things that you might fear, but one thing is certain.  Fear is a prison.  It is imperative that you Cure Your Fear To Get The Most Out of Life!  Don’t let your fear rule you any longer.  Break free!

3.  Self Doubt

We all have moments of self doubt, but some of us tend to dwell there longer than others.  This can be very detrimental to a full and rewarding life.  You have to Toss Out Feelings of Insignificance and embrace the idea that You Are a Powerful Force so you can reach higher in life.

4.  Lack of Planning

A wise proverb says, “He who fails to plan, plans to fail”.  You must have a clear and well-defined plan if you want to succeed.  What is your life plan?  Without one you are NOT living life to the fullest.  I’d highly recommend reading How to Live Life to the Fullest: A Step-by-Step Guide to get your plan together.

5.  Clutter

Clutter clogs up our life.  It gets in the way and causes one to feel overwhelmed and depressed.  You must clean up clutter to live a great life.  You just do not need all that stuff.  Here are 10 Questions to Help You Declutter your life and break free.

6.  Complexity

Similar to clutter, complexity in life is a drain.  There are all kinds of ways that we overcomplicate our lives.  To break free, we need to embrace simplicity.  I’d suggest starting with this list of 27 Simple Ways to Simplify Your Life.

7.  Debt

Debt definitely is a ball and chain that weighs you down and holds you back from living life to the fullest.  When you owe people money, you are a slave to them.  You work for them and not yourself.  Read more about why I think being Debt-Free Is The Path To Financial Success and then follow the steps in Getting Debt-Free Using The Debt Snowball Technique to pay off your creditors.

8.  Efficiency

Yes, I said efficiency.  Being too efficient robs life of a lot of joy.  In fact, I think that Efficiency Thwarts Happiness and the Good Life.  You have to learn to slow down and ditch your hurriedness to live a fulfilling life.  Stop rushing and start really living.

9.  Lack of Focus

Our lives become what we focus on.  If you are focused on nothing, then nothing is what you are going to get.  Is a lack of focus holding you back from getting what you want?  Learn to focus your attention and you’ll be amazed at how quickly things start to happen for you.  My fourth rule for smart living is to Focus Your Thoughts and Actions to get the most out of life.

10.  Giving Up

Some of us have a tendency to give up too easily.  This can certainly hold you back from living the best life possible.  Your pot of gold may be just around the next corner, but if you stop now you’ll never know.  If you think you are prone to giving up then read How to Keep Going When the Going Gets Tough.

11.  Wrong Ideas about Happiness

Stephen Covey warns us that we don’t want to climb the ladder to success only to find it is leaning against the wrong wall.  However, that is exactly what many of us do because we have the wrong ideas about what makes us happy.  If you think this might be you, then check out How We Judge Success Determines Our Happiness.

12.  Poor Eating Habits

Good health is essential to enjoying life.  You can’t live a rich life if you feel bad or have diseases that cause you pain.  One of the leading causes of health problems is a poor diet.  It really isn’t that hard to improve your diet.  Here are The Eight Best Foods To Eat Everyday and all of them are very common things that most people like.  Break free from your poor eating habits!

13.  Lack of Exercise

There are at least 13 Scientifically Proven Health Benefits Of Exercise.  If you don’t exercise, you are likely not going to have adequate energy to really enjoy life the way you want.  Exercise doesn’t have to be boring or overly strenuous.  For example, I use Wii Fit as a part of My Personal Fitness Plan.  Lack of exercise may be the thread holding you back from a better life.

14.  Dwelling in the Past

The past is the past.  Your life is happening now.  If you spend too much time focusing on the past, then you need to Forget the Past: Let It Go to Fly Higher.  The past will hold you down like an anchor if you let it.  Focus your eyes on what is in front of you to get the most out of life.

15.  Comfort

Comfort is NOT an Option if you want to grow and achieve better things for yourself and your family.  You aren’t going to find a great life sitting on the couch watching television or laying in bed.  You’ve got to get out there and engage in life if you want great things for yourself.  Break your addiction to comfort!

16.  Being a Control Freak

You cannot control every detail of life.  If you try, you will wring all the joy and adventure out of it.  This will leave you bored, lonely and desperate.  You’ve got to ask yourself, Are You A Control Freak In Your Relationships?  If so, then you need to fix it.  It is costing you more than you know.

17.  No Spiritual Life

We are more than flesh and bones.  The sooner you realize this and accept it, the sooner you’ll start living a better life.  Here are 7 Good Habits for Faith that will help you build a strong spiritual life.  Faith adds meaning and purpose to life which are essential to living life to the fullest.

18.  Dull Sense of Creativity

Are you creative?  Most people would say they aren’t, but this is simply not true.  You just lack a true sense of your creativity.  We all create.  We were born with innate skills in this area.  We just don’t exercise them.  You need to Rekindle Your Creativity to live the best life possible.

19.  Frenzied Thinking

We are masters of working ourselves into a frenzy especially during periods of adversity.  However, this state of stress, anxiousness and worry is detrimental to our lives.  Here are 5 Ways To Calm Your Thinking And Deal With Adversity that will help you mitigate the negative effects and maximize your life.

20.  Denying Stupidity

We all make stupid mistakes sometimes.  The best thing to do is to Admit Your Stupid Mistakes and learn from them.  This leads to growth.  Denying our stupidity leaves us stuck in ignorance and prone to repeat our errors.  Acknowledge your stupidity to break free from it.

Which of these things is holding you back from a better life?  Untie yourself and fly!

Photo by cdogstar

Fortunately, Jason from Live To Budget, has put together a very nice eBook with articles from several well respected personal finance blogs.

Spend Less Than You Earn eBook

There are several very nice things about this eBook worth noting:

• It is 100% free!
• You can download it and read it at your leisure offline.
• It contains wonderful advice from multiple authors.
• It will help you get control of your money.
• Two of my articles are included in it!

What more could you ask for?!?  I hope you’ll take a minute to download the eBook and peruse it at your leisure.

Click here to download the Spend Less Than You Earn free eBook!

I want to assure you that there is absolutely no gimmick or obligation involved in downloading this eBook.  It is simply a way for several bloggers to cross-promote our personal finance blogs.

The eBook is in PDF format.  You may need Adobe Reader to open the file.

What you will find inside of Spend Less Than You Earn

Here’s a sneak peek at some of the titles that you’ll find in the eBook in the order in which they appear:

• 10 Tips For Reducing the Power Bill @Lightening
• How to Reach your Financial Goal @My Debt Free Goal
• 10 Surprising Side Effects to Money Management @Simple Mom
• The ABCs of Frugality: 26 Key Frugal Concepts @Almost Frugal
• Start a Grocery Budget Limbo @Live To Budget
• What Everyone Should Know About Personal Finance @Blunt Money
• Now is a Good Time to be Living on a Budget @My Super-Charged Life
• Best Personal Finance Idea of the Year @Credit Withdrawal
• How Credit Card Companies Apply Your Payments @Mrs Micah
• How To Budget With Irregular Income @Being Frugal

I hope you enjoy the eBook!  I’d love to hear what you think about it.  Please leave me a comment below and let me know your thoughts!

Long weekend was a chance to reflect on balance in life.

Over this weekend, I did a lot of thinking about balance in my life.  It is easy for me to get caught up in pushing myself to achieve more.  I pressure myself and create stress that wears me down.  In some areas of my life I am a borderline perfectionist.  I want everything to be exactly right.  This creates unnecessary anxiety that spills over into other areas of my life and affects them negatively.  The crazy thing is that I do this all to myself.  It is my attitude that creates this tension.  I make myself a slave to achievement which steals my freedom to enjoy what I have today.

What are you a slave to?

Is there an area of your life that dominates and steals your ability to live life to the fullest?  We can become so focused in one direction that we lose sight of the big picture.  We forget what we are truly striving for.  We need balance between achievement and leisure to truly get the most out of living.  Let’s examine some areas where we might have let ourselves become slaves.

1.  Are you a slave to work?

Of course, this is the easy one.  In America, we often let ourselves become a slave to our work at the cost of family and leisure time.  But, we might think, “I’m not a workaholic because I don’t spend 60 hours a week at the office.”  However, we do sometimes bring it all home with us in our minds.  I’m guilty of this.  I stress myself out at work and then have a hard time relaxing at home.  It takes me a day or two of time off just to unwind.  About the time a normal weekend is over is when I’ve finally unwound enough to start enjoying my family.  This is improper balance.  I’ve made myself a slave to my productivity at work.

2.  Are you a slave to approval?

This one can easily go with being a slave to work.  We often get so caught up in seeking the approval of others, that it costs us the joy of living.  We worry so much about what others think about us and our achievements that we forget to enjoy it ourselves.  We all want praise for a job well done, but if you are so focused on what other’s might say or think about your accomplishments that you drive yourself and everyone around you crazy trying to get it perfect, then you have become a slave to approval.

3.  Are you a slave to debt?

Are you living beyond your means because you want more than you can afford?  Debt is a sign that our lives are out of balance.  We have assigned more value to our possessions than what they truly deserve.  We think that things will bring us happiness so we spend, spend, spend, but all that really comes are bills from Visa, Mastercard, and American Express.  Of course, the debt often stresses us out, creates strife, and forces us to overwork to pay our inflated monthly expenses.  If this rings true to your situation, then you are a slave to debt.

4.  Are you a slave to comfort?

Sometimes, the pendulum can swing too far in the other direction.  We can allow ourselves to become lazy and completely unmotivated.  We become a slave to comfort and leisure.  We fail to invest ourselves to become all that we have the potential to be.  We sit in front of the television all weekend watching sports or old movies instead of getting up and living.  Our children want us to play, but we resist to rest.  We could be reading a book or learning a new skill, but instead we are out on the golf course.  Leisure time is nice, but it has to be balanced with results-oriented action.

5.  Are you a slave to your children?

Many adults have let their children completely take over their lives.  They are consumed with running their kids to their next activity.  They have ballet on Monday, karate on Tuesday and Thursday, piano on Wednesday, and soccer tournaments all weekend.  When you multiply this by two or three children, then it gets really crazy especially with school and church mixed in.  Becoming a slave to our children is not healthy either.  Our children are obviously important and need our attention, but we need time to focus on ourselves so we can feed our own needs for achievement and leisure.

6.  Are you a slave to substances?

When we have lost balance in our lives we often turn to substances like caffeine, alcohol, and drugs to help try to cope with our imbalance.  Of course, these things just compound the problems.  We drink coffee all morning to get ourselves going and then need alcohol or prescription drugs in the evenings to try to relax.  This can become a downward spiral that can lead to some serious addictions.  Any substance that we need to function on a day-to-day basis has become our master and we are it’s slave.  You may want to seek professional help if you have a serious problem with drugs or alcohol.

Balance is the key to freedom.

Seeking balance for a fulfilling and complete life takes effort.  It is a continuous process that is never finished.  We have to constantly evaluate ourselves to see where we might be off track.  When things are just right, then we are happy and productive.  We are also contributing to the happiness of those around us.  Everything seems to just click.  We enjoy true freedom when we break the chains that enslave us.

Is there balance in your life?  What makes you a slave?  Leave a comment and let me know.

Photos by joxin and Ende