photo by Filippo Minelli

It’s been a while since I’ve posted here. I’ve been really busy working on some other projects and just haven’t made the time that I should have.

That’s a big problem in our modern society it seems. We rush from place to place without slowing down. This can have an adverse affect on our finances also.

We can get so busy that we don’t take time to focus on our spending. It’s so much easier to just order out than to cook a meal after a busy day. Or you go ahead and buy something at the store because you’re sure there’s money in the account for it, but it’s been two months since you actually balanced the account.

Next thing you know you, you’re bouncing checks again and running up the credit card that you swore was just for emergencies. Your finances are spiraling out of your control once again.

Finances are just something that won’t take care of themselves. You have to actively manage them. Sure with time you get on a routine that makes it easier, but you never get to te point where you can just leave them on auto pilot. Make sure you’re setting aside time every week to check in with your money.

photo courtesy davidm69

I’ve noticed a common theme among many people that I have met with regarding personal finance. Many of them seem like their ready to make a change and get out of debt. They’ve taken the time to seek me out and to fill out some basic information about their financial situation. It takes a lot just to overcome that first hurdle. Many people never come to that point. They’re too embarrassed or too proud to seek out help.

As we go through the initial consultation though, things begin to change. We begin to look at their situation and discuss some potential things they may need to do to get out of debt and get their finances back on track. Maybe it’s selling a new car and purchasing something older with cash in order to eliminate a payment and reduce the cost of taxes and insurance. Maybe it’s deciding to buy less of a house than you really wanted so that you don’t end up deeply in debt with no way to pay. Maybe it’s waiting and saving up cash for that new flat panel TV instead of running over to the rent a center and paying 3 times as much for it on payments.

Whatever the hurdle, it seems to stall them in their tracks. They suddenly aren’t as interested in talking about solutions. They decide not to follow up and commit to an action plan. Many see bankruptcy as an easier solution. It gives that instant satisfaction although the long term consequences are much more severe.

I’m not sure what people are expecting when they come to me. I don’t have access to some secret magic money tree. I don’t know of some mysterious benefactors that are going to pay off all your debts and allow you to continue to live beyond your means.

It’s going to take work. It’s going to take sacrifice. But in the end, the rewards are so great. You will have accomplished something significant. You will have peace in your finances and a knowledge of how to succeed in the future. If you’re ready to do this then call me. We can work out a plan for you. If you’re looking for an easy out, call that guy on the late night infomercial. Apparently he knows where that magic money tree is.

MAYDAY! EMERGENCY video! This wasn’t scheduled (emergencies never are) so this is a bonus question for Financial Literacy Month. Matt tells their story of his unexpected even in a podcast, and asks this question:

How would you pay for an emergency?

A) Whip out the credit card
B) Get a loan or work out a payment plan
C) Do it yourself and hope for the best
D) Use Emergency Savings you already have

I can tell you from personal experience that an emergency fund is LIFE CHANGING! Please get your started today!

This is really what it’s all about folks. We’ve all had a great time doing this for Financial Literacy Month, but in the end, it’s all about making a difference. Do you want to make a change in your finances? When are you going to start?

Question: I will start my “get-out-of-debt-plan” when…

A) I get the “big raise”
B) Gas prices go down
C) When the Sheriff arrives at my door to serve court papers
D) Today

Make the change today.

Turn off the TV and read a book on personal finance. Listen to a podcast, do a budget, and don’t be afraid to ASK FOR HELP.

This great video from Julia at Promises Financial Coaching for Friday’s question came out a little later than normal, and I totally forgot to get it posted for Friday. Sorry folks.

Question: If you have some friends coming to town the day after I get paid, should I…

A) Cash paycheck, spend as I want
B) Make a plan and use an Envelope System
C) Put it on a credit card. Eat, Drink, and Be Merry

Which do you think is the best answer? Now, what would you really do?

Greg Pare with Financial Fitness Coaching brings us today’s Financial Literacy Month question. It involves a couple of savings products. Do you know the difference?

Question: What is the difference between a Money-Market “Account” and a Money-Market “Fund”?

A) There is no difference
B) Only one is FDIC insured
C) One is offered by a bank, the other through a Brokerage House

So, which is it?

Jeff Kosola from DeliverAwayDebt.com asks what on the surface seems like a pretty basic question. The reality is though, that it’s the most important question you can ask yourself. If you don’t have a driving motivation, it’s not going to happen. When the going gets rough, you’re going to give up and go back to the status quo. So give this some serious thought, and let us know what you think.

Question: What are your reasons for improving your financial self?

A) Reduce stress
B) Provide a better future for your family
C) Be able to work less
D) Because DeliverAwayDebt said so!

So, what IS your reason for improving your finances?

Do the Work by Steven Pressfield

He recently had a short manifesto, Do the Work, published by one of Seth Godin’s latest endeavors, the Domino Project. Ishita Gupta was interviewing him about this book, and one thing in particular really jumped out at me that has specific application to your finances as well as any other areas of your life.

The book is primarily about resistance in life and the fight to overcome it. Ishita asked him about a specific time in his life where he was living in his van and trying to write a book. She asked him how he got motivated to finish his book when there was no one there to push him.

His answer is memorable. “So the pain of not doing it was worse than the pain of doing it. I never really thought about it from an accountable point of view because I just had to do it, there was no question.”

You see, that there is the key to change. In your finances, no person, or program, or book is going to be able to change your financial situation. Only you hold the key to that. When the pain of where you are finally becomes stronger than the pain of making a change, then you will do it. At that point, those books, or coaches, or programs can then help you along that path, but the catalyst has to be overcoming your own resistance.

Ironically, that book that he finally finished never amounted to anything. Neither did the next one. But if he hadn’t overcome that resistance and finished that book, he never would have gone on to become the success he is today.

What area of your life are you facing resistance in right now?

By the way, Do the Work is free in the Kindle version. If you don’t have a Kindle, you can download free Kindle applications for your smart phone or computer.

The above links are affiliate links.

Jake from DebtSucksBlog.com asks a pretty morbid question in today’s Financial Literacy Month question of the day. It’s not something that’s pleasant to think about, but you really should for the sake of your family.

Question: If you were to pass away while in debt would your…

A) Debt be forgiven
B) Heirs be responsible for the debt
C) Estate be responsible for the debt
D) Dreams of being Debt Free finally be “realized”

So what do you think? Are you prepared for it? There’s more to it than just the debt also. What about the lost income? What about any additional burial expenses? All of these things are part of a healthy estate plan and you really should give it some thought and get it in writing just in case the unthinkable happens.

The costs of a college education are rising rapidly. Many graduates are burdened by excessive debt that they struggle to pay back while trying to build a life for themselves. If you are able to set aside money to help your children cover some of their college expenses, what’s the best way to do that?

Question: You should save for your child’s college education…

A) In an Educational Savings Account (ESA)
B) In a 529 Plan
C) After consulting with a professional to see what is best
D) In a checking account where you can get easy access to the money

Think you know the answer? Is there a right answer? Is there a wrong answer? Tweet it to us using #FLMonth or comment below this post.