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

We all encounter setbacks in our life.  Something happens that steals all or most of our forward momentum and discourages us to the point that we want to give up.

Setbacks seem to always come at the worst possible time too.  They are often deemed the straw that broke the camel’s back.  They can send us into a free fall.

I want to encourage you not to quit despite your setback.  Maybe this setback is just a part of The Dip that you need to press through to a greater life.

Five strategies to help you overcome your setback

I’ve had my share of setbacks.  I’ve been laid off unexpectedly, experienced a business divorce and lost a home to a tornado among other things. 

Yes, I know a little about setbacks.

If there is one thing that I’ve learned through it all, it is that setbacks are just speed bumps.  They are not the end of the world unless you let them be. 

Here’s what to do if you experience a setback:

1.  Decide not to quit

I know this sounds a little silly, but you have to muster the resolve inside yourself that you are not going to quit.  Quitting is a sure-fire way to fail.

You may drastically change your tactics.  You may take a brief break to gather your senses.  You may change directions, but you cannot sit down and give up!  That is not acceptable and I won’t let you do it! 

By quitting now, you will sacrifice all the time and effort you’ve invested in your journey to this point.  Do not give up!

Say to yourself out loud right now, “I will not quit.”  Repeat it as many times as possible until you start believing it.

2.  Get a pep talk

Go to someone positive that you know and discuss your setback with them.  Tell them you are discouraged and need a little help getting over this hump.

Every time that I encounter a setback or even a lull in one of my endeavors, I find that a little encouragement can go a long way.

Often, just talking about the situation with another human being somehow makes it seem a lot less ominous.  It brings it back down to size.  Our imaginations can make mountains out of mole hills.

Your setback may be more than a mole hill, but a good pep talk will help you.  It might even spark an idea on how to mitigate some of the damage and get things back on track faster than you ever imagined.  What are you waiting for?  Get a pep talk!

3.  Recruit someone to help

If you are really stymied and overwhelmed by the whole mess on your hands, then you might want to bring someone else in to help you over the hump.

It could be a spouse, family member, business associate or friend.  Anyone that has a good head on their shoulders and is willing to share the burden for a period of time to help you regain your momentum.

If your situation is particularly nasty, then you might even want to bring in a professional.  You might need to speak to an attorney, consultant or accountant to help you straighten things out again.

Two heads are often better than one.  Don’t feel embarrassed to ask for help!  All successful people have needed help at one time or another to get to where they are.  Don’t believe me?  Just ask one!

4.  Refuse to whine

Do not become a whiner!  In the beginning, you can indulge yourself with a brief, private pity party.  Get it all out.  Cry, fuss, stomp your feet and ask “Why me?”  But, once you’ve done this leave it behind and get focused on the recovery.

Negativity, revenge, backbiting, gossip and whining have no place in overcoming setbacks.  They are time wasters and only serve to drag you and everyone around you down.

Also, do not adopt an excuse and let it become your cop out.  Some common examples include:

• It was the bad economy.
• They stabbed me in the back and stole my idea.
• The government didn’t give us took what we needed.

I repeat do not adopt one of these and make it your pet that comforts you through your pain.  These excuses are crutches that can become addictions.  Addictions are bad!

5.  Journal about your setback and your mistakes

Writing forces you by its very nature to organize your thoughts and to create structure where none formally existed.  I highly recommend taking some time to start a journal.

Journaling about your setback has value because it can help you make sense of all the emotions involved.  You need to sort these out so you can think clearly.

A journal also creates a record that you can refer back to to recall what happened or what was said or to get a late night pick-me-up when no one is around for another pep talk.

In your private journal, admit your mistakes that led up to or contributed to this setback.  What?!?  Yes, you need to take some personal responsibility for what happened and you can do it in a journal.  Learn from your mistakes!

Employ these strategies and you will recover quickly!

From someone that’s been there, done that and got the t-shirt, I know setbacks suck.  However, you can move past them.  You can get back on track.  I’ve done it.  You just have to roll up your sleeves, make up your mind and get going again.  Use the strategies that I’ve outlined above to recover quickly!

What other strategies have you used to recover quickly from setbacks?

Photo by Esparta

There are a lot of changes going on right now.  There are economic changes, political changes and for some, big life changes.  This can be a scary and confusing place to be.

All these changes, are leaving people in a place they never thought they’d find themselves.  They need to start all over again.

Regardless of how you might have ended up where you are at, starting over is not easy.  Most of us have forgotten what it is like to begin again.  We grew so used to our life and the way it flowed, that we aren’t even sure how to handle waking up not knowing what to do.

I urge you not to give up!  A new life is out there for you.  Yes, you have some work to do and no it won’t necessarily be easy, but you can do it.  You can build yourself a new life.  Let me share some thoughts with you on how to go about it.

Six Steps to Starting Your Life All Over

Starting fresh may seem attractive to some, but for most of us it is a very difficult place to be.  That’s totally understandable.  If you find yourself in this position, then hope is not lost, but you’re probably going to need to reset your thinking in order to find a new life.

I hope these suggestions will help.

1.  Get a Plan to Guide You to a New Life

The number one thing you need when you are trying to start over is a solid plan.  Big life changes can be paralyzing.  They can leave you feeling afraid, confused and hopeless.

A good plan will help you to overcome your paralysis.  It will guide you step-by-step through a process to decide what you want and how to get it.  After all, you wouldn’t start a trip without a destination in mind and a map to follow, now would you?

The plan that I’d recommend is Discover Your Passion: A Step-by-Step Course for Creating the Life of Your Dreams.  It was developed by Barrie Davenport, a career and life transition coach.  You will not find a better resource to get you back on your feet.  Barrie’s material will help you start over from the beginning to build the perfect life.  Don’t hesitate to get this great guide to starting your life over!

2.  Adjust Your Perspective to Your New Situation

Take an honest inventory of your life.  Many people find this very difficult.  They refuse to accept that they are starting over from scratch.  Instead, they bury their heads in the sand and try to continue living like they always have.  If you really need to start over, then denying it simply won’t work.

Put your pride aside and be willing to do whatever it takes to rebuild your life.  Frugal Dad recently highlighted a book called Scratch Beginnings.  It details the real-life journey of Adam Shepard, who upon graduating from college put aside his degree and all his worldly possessions and tried to start over in a new city with only $25.

While Adam’s situation was self-imposed, I believe the lessons he learned and the attitudes he adopted would be helpful to anyone having to begin again.  Getting the right perspective on where you are at is an essential first step to getting your life back on track.

3.  Dig Deep and Remember How You Did It the First Time

Most of us started out in life from a clean slate.  We built our lives from scratch once so surely we can use some of the same methods to do it again.  It is a stretch, but recalling how you did it the first time is probably a very useful exercise.

Take the lessons that you learned the first time around and use them to avoid repeating any mistakes you made before.  Mistakes are nothing to be ashamed of admitting.  Our mistakes are how we gain experience.

If you are starting over, then you probably have a good deal of experience on your side this time that you didn’t have before.  This is to your credit.  Use your experience to jumpstart your new life!

4.  Set a Few Simple Goals

You’ve got to clear your head.  As Ron at The Wisdom Journal points out, having too many goals is like having none.  You need focus right now and the best way that I know to achieve this is to set a few simple goals.

I suggest that you set two or three short-range goals that you want to accomplish in the next three months.  Also, I recommend looking out a year from now and envisioning where you want yourself to be.  Be realistic but also stretch yourself.

In his book, Adam Shepard set short-range goals to get out of the homeless shelter and to have a job by a certain date.  Your situation may or may not be this dire.  The point is to get focused on exactly what you want to accomplish.  Set a few goals and pursue them vigorously!

5.  Become a Master of Your Finances

Money is the fuel you need to keep your life going while you are recovering.  You’ve got to get absolute control over every penny you have.  Madison at My Dollar Plan shares some great resources for doing this in Money by the numbers.

When you are starting over, you can’t afford to make a lot of financial mistakes.  Generally, you are walking a economic tight wire.  Fortunately, there are a ton of free resources on the Internet to help you become a master of your financial destiny.

Of course, you want to exercise caution and remember, "If it sounds too good to be true, then it probably is."  Don’t be tempted to try a shortcut to getting back on your feet.  It will likely lead you into a blind dead-end.  Be patient and work your plan.  You’ll be living a new life before you know it!

6.  Wheel and Deal to Accelerate Your Recovery

You’ve got to negotiate with everyone on everything right now to get your new life going as quickly as possible.  Sara at On Simplicity recently wrote a fantastic guide to bartering that I recommend reading.

Trading your labor or expertise for things you need is a great way to save money and to build new relationships as you start a new life.  You’ve got to think differently right now.  Most of us, don’t negotiate and barter enough in our regular lives.  We get stuck thinking too narrowly.

Now is the time to break free from these ruts and discover new ways to get even more out of life.  Be bold.  You’ll get more than you expect if you will just ask.  Make deals and deliver value to everyone you meet.  This is a sure way to rebuilding a life you’ll love in no time!

Discover a New Life Better than Your Old One

It is probably hard to see now, but often when forced to rebuild our lives, we find the new one is even better than the old.  I got a taste of this when I lost my home to a tornado back in 1999.  It was a trying time, but we made it through.  When it was all said and done, we had a new life that was even better than before!

Have you ever had to start over?  What advice would you share?

Photo by Marco Bellucci

“Finish each day and be done with it. You have done what you could; some blunders and absurdities have crept in; forget them as soon as you can. Tomorrow is a new day; you shall begin it serenely and with too high a spirit to be encumbered with your old nonsense.” -Ralph Waldo Emerson

This is a true story of one person’s choice to change his life for the better.  No matter where you are in your life, it is possible to make positive changes.  It really is a choice you have to make.  Ryan’s story that he shares below is testament to that.  He has chosen to beat adversity and addiction to rise from the ashes and claim a life for himself.  If Ryan can do it, so can you!   

I feel honored to get to post Ryan’s story here at MySuperChargedLife.com.  It all came about very recently.  Ryan commented on my article Reality Check- Are You Doing What It Takes To Get Ahead in Life?.  His comment mentioned that he had completely flipped his life after visiting self-improvement sites.  I e-mailed him and asked if he would be willing to share his story for the benefit of others.  Fortunately, he was happy to do so.

Ryan’s incredible story of triumph.

Hello, my name is Ryan, I am 21 and life couldn’t be better! Though it wasn’t always this way. I changed my life with the help of many wonderful people. Even after I was pushed away by some that I looked up to because of my mistakes. So this is my way of paying tribute to all those that have helped me along the way. I hope others can learn from my mistakes and (most important) recent accomplishments.

I had an average childhood, I couldn’t complain. Then I hit my teens, we had a few deaths in the family and I started getting bad grades in school. I felt like everything was spinning out of control. I sought something to ease my pain. This is about the time my friends started offering me marijuana and I eventually gave in. When I was high I just stopped caring. I quickly became addicted. I hear a lot of people say that marijuana isn’t addictive… after 7 years of heavy use I know, it is!!! I’ll get to that later. Instead of dealing with my problems I would just get high and forget.

I lost interest in school, sports, family and just plain thinking! I couldn’t remember lyrics to favorite songs. I lost my linguistic, social, and even basic memory skills. I got so bad I couldn’t even remember what I had done the day before. My own family started looking down on me and pushed me away. I started going to parties looking for someone, anyone to relate with. At first I would only drink at parties. Eventually I got so addicted I started drinking alone. I found “comfort in the bottle.” I would drink so much that I started blacking out. At my worst I would drink up to a liter of hard liquor. I got so depressed I felt that I would be better off dead. One day I got a wake up call when I blacked out and got in a verbal fight with my girlfriend. She was so mad that she was going to leave me. That’s when I vowed to change.

I stopped going to parties and sobered up. I spent more time at work and distanced myself from friends that had bad habits which was basically all of my friends. I started saving money and bought a computer. This is where my life started to changed. I was still smoking pot, I was in denial about how badly it was affecting me. I finally realized this when I quit to pass a drug test… which was incredibly hard. I then quit my dead end job at a pizza place and am now thinking about joining the Air Force. After 7 years of using almost everyday this was the only life I knew.

When I quit I could only sleep for about 3 hours a night! I would shake and sweat while trying to get some sleep. I had to start exercising until I was exhausted, just to get some rest. When I finally got over my addiction my memory started coming back rapidly. Now I remember songs I heard days ago. I remember how to spell words usually after typing them once. I was fascinated at how fast I improved. I now push myself to see how far I can go.

I started using my PC to look for ways to expand my mind. I found tons of self help websites with tons of ideas and suggestions. Any problem I had someone else had already dealt with. All I had to do was ask. I no longer feel alone! My depression is gone and my eyes are opened. I am amazed at the abundance of people that will freely help others. I began using these resources to “train my brain.” Now I’m working on speed reading, expanding memory (visual and verbal), typing, spelling, physical health and much more. I found new hobbies, I learned to play the piano, drums, harmonica and guitar. I learned from new friends I found.

I’ve turned my life around completely. At my low I wasn’t sure I wanted to live anymore, now I can’t believe how good I feel. Just to help others with their problems makes me feel good… help people that are like I was. All thanks to the wonderful people on the Internet. You never know when you could be changing someone’s life. You can make someone feel wanted with just some simple advice. I will always continue to try and be there for others because people were there for me. Remember its never to late to change your life.

Again, I thank all of you that were there for me. Thank you Jeff and MySuperChargedLife.com, the help you’ve given me and others has made a huge difference!

There is hope for those that choose to change.

Please find hope in Ryan’s story.  He is an inspiration to us all.  He found himself in a hole and chose to get out.  If you are in similar circumstances, then Ryan and I want you to know that you can do the same.  You just have to make the choice.  It is available to you.  Life can be great!

Ryan asked me to include a link to the poem Desiderata in my post.  I think you will find that it is particularly well-suited.  I hope you enjoyed Ryan’s story and find encouragement from it.  If so, please leave a comment below to further encourage Ryan as he continues to grow in living life to the fullest!

“The journey of a thousand miles starts with a single step.” -Lao Tzu

“Our true wealth is the good we do in this world. None of us has faith unless we desire for our neighbors what we desire for ourselves.” -Mohammad

Photo by Matthew Fang