IT’S TIME TO CLEAN UP YOUR FINANCIAL HOUSE AND GET ON WITH LIVING.
If you have outstanding debt then you have debt problems however not all debt puts a consumer in crisis mode. If all you can afford is the minimum payment on your bills ask yourself if this is the life you want? If you answered yes then be on your way and do as you please. Just don’t be surprised if you get to point B (Bankruptcy) when everyone else is celebrating their debt problems with debt wins.
You are the only person that can solve your debt problems but along the way you may just run into someone who is willing to lend a helping hand or even an ear for listening. I like to think of myself as The Financial Super to many of my readers. This person could also be family, friends, a boss, co-worker, stranger on a bench or even a crazy Brit personal finance blogger like me.
Don’t feel sorry feel strength
If you answered No, then great you’re the person I want to talk to today. No one likes to have debt problems that have spiraled out of control so the first solution is to stop creating debt and start fixing it. >>>> This is NOT enough though.
Is this you?
- You’re tired of paying the minimum amount on your credit cards or other debts you owe.
- You’re tired of struggling to balance your budget if you even have one.
- You’re depressed or anxious while waiting for the next months bills to arrive.
- You don’t believe your financial situation is ever going to change.
- You feel trapped and not sure where to turn.
YOU. ARE. NOT. ALONE.
This could be you
- This month I’m putting extra down on my credit card bill
- I finally have a budget that works.
- I don’t have to worry about next months bills as I have the money.
- Things are looking up especially for my bank account.
- Without support I wouldn’t be where I am today.
Debt problems follow
I ran into a young lady the other day which I met years ago at a seminar I was speaking at. When I asked her how she was doing her response was, “meh, I’m getting by”. I wanted to know what she meant by that but I didn’t have to ask because she told me.
She was struggling with debt even though she worked full-time and thought she was bringing in enough money to pay the bills. The anxiety in her voice prompted me to ask her what she was doing about her financial situation. Currently she is doing nothing because she feels trapped and doesn’t know where to turn.
I asked her what she would like to see happen in with her life to which she responded, “I want to get rid of my debt problems once and for all”. Fair enough I said, but what are you doing to make this happen? Most of her problem is understanding where the problem is, lack of motivation and sheltering what needs to be fixed.
Until you live it you don’t know
I could never possibly understand every financial situation out there and don’t profess to begin trying. This is why it’s so important to keep an open-mind when it comes to debt problems. There’s always a situation behind a situation behind a situation which contributes to debt problems.
Many people who have end-of-the-rope debt problems are one bad decision away from something drastic that could change their lives. This might mean you are left evicted, struggling for support and the potential of going bankrupt.
Stress like this is enough to push anyone over the edge which may result in hiding from the storm. It always comes knocking though. Drugs, alcohol, abuse, depression, anxiety, relationship breakdown and many other mental health concerns may arise due to financial problems. It’s not an easy road to understand especially if you’ve never lived it.
- It’s not enough to tell someone to get another job.
- It’s not enough to tell someone to leave a bad relationship.
- It’s not enough to tell someone to stop spending and clean up their act.
- It’s not enough to tell someone they are they problem.
It may not be enough but they all matter which means it’s important to understand a situation before you judge it.
Be The Financial Super
What we need to do is help each other by motivating, listening and helping those in need where we can. That might mean offering someone a job if you are in a position to do so even if its sweeping floors or cutting grass. That might seem like the worst job in the world but may be the best job they’ve ever had. The job could be what they need to tackle debt problems, build motivation and believe that things will get better.
Believe in someone who you might not have ever given a second look or thought about. Why? They could be the missing link to your business, a huge success story or even better someone who does the same for others in need. What we offered to this young lady was cash for helping us on occasion with summer chores around the house and occasional babysitting. Her reply made me smile, “I will use the extra money to rid of my debt problems once and for all”.
Unfortunately, this scenario won’t work for everyone but no matter how deep your debt problems are never feel like you don’t have a way out. There is always a way even if it means going the route you never thought possible.
What can you do to get started fixing your debt problems?
Start cleaning up your financial affairs….
- Write down your feelings and goals
- Ask yourself who can you turn to for support and do it.
- Eliminate any extra expenses you don’t need.
- Take care of your money and become a money boss.
- Stretch everything you can to save money.
- Rid of stuff/people in your life smothering you or holding you back.
- Best Strategy: Believe that it’s going to work out and don’t give up, give in or accept.
As someone who has had relationship debt problems in the past and managed to fix them I can tell you that it’s not easy and actions speak louder than words. Don’t just say you will, do it. If you are the friend or the person that someone reaches out to or you notice you can help then by all means do so. Just remember that not everyone wants help but I have yet to meet someone who doesn’t like to smile.
You can visit, bake cookies, show up with fresh flowers and talk to someone who could really use a friendly financial support. They might just need help around the house or your vehicle to move stuff out and away to clean up house or move.
The past 2 weeks I’ve been naughty and watched every episode of “The Super” on Netflix because it was so hard for me to stop. The program based out of Omaha has empowered me and given me strength to help people as much as I can but also to enforce the rules of finance.
Bodyguard, plumber, psychologist and landlord – Dave Paladino is The Super.
The Super is a TV series starring business owner/landlord from Landmark Group Dave Paladino to almost 2000 tenants. Each episode showcases a different scenario with plenty of life lessons. I don’t think I’ve ever had such an eye-opening view of these real-life stories like Dave shares and honestly he’s given me much to ponder.
I may not be The Financial Super for you but I sure as hell have given it my best shot the past 5 years with this personal finance blog. I’ve entered so many of your financial houses that I realize that listening has always been the best service an online friend can offer.
I don’t know if Dave will ever read this but I just wanted to say you are one heck of a guy. Thanks for the motivational push the past two weeks and inspiration to continue being The Financial Super for my readers.
Most often what we want in life isn’t what we get but we certainly don’t have to accept it.
Discussion Question: Have you ever met or chatted with someone who has debt problems and helped them out? If you have debt problems what have you done to break down the walls?
Our Net Worth February 2017
RESP Contribution 2017: $208.33 a month.
This month saw us buy plane tickets for a trip back home. Due to our overspend this month, we only had a small increase in our cash. We’re not worried as buying plane tickets isn’t a usual thing for us. The budget didn’t quite cut it this month because of it but we haven’t suffered because of it either.
However, we had a superb month of gains in the investments. This makes up for the dismal performance from last month. After everything that’s happened we still manged to bring our net worth up and over the $900,000 mark. We also managed to get back on track towards the million mark.
According to the housing market our house value has also increased considerably, but due to the irrelevance of selling it and buying another at an equally increased price we have not bothered increasing our net worth.
Understanding Net Worth
What Does Individual Net Worth Mean?
Net Worth is a snap shot of your financial health sort of like a picture or debt to net assets. In simple terms it’s a total of the value of your assets minus your liabilities.
We credit the growth of our net worth due to patience, perseverance, using a monthly budget and not giving up. Your numbers may go up and down but don’t let the numbers scare you rather understand why and move on.
If you would like to use our budget I offer a FREE downloadable budget which I created and that you can use at home just like we do. I don’t charge for it because I want you to save money not spend more!
There are tonnes of other free printable lists offered at Canadian Budget Binder to help you achieve some of those financial goals and build your net worth. Now determine just how much net worth you actually have and go from there.
Enjoy and let me know what you think.
Determining net worth
Figuring out net worth is fairly easy as long as you know your personal numbers or monthly finances which means you need to do your homework. Net Worth is simply adding up all your assets (what you own) then taking away your liabilities (what you owe) which will give you a net worth number.
Understanding your net worth will help you determine if you are on track to meeting or beating your personal financial goals. It doesn’t get any easier than that.
Net Worth = Assets – Liabilities
Calculate net worth
Do you know how to calculate your own Net Worth?
Now you can stop asking yourself the question, how do you find out your net worth? Why? It’s easy to determine. We like to calculate our net worth every month so we know if we are still on track. Some people calculate it yearly or quarterly. It’s really up to you and how informed you want to stay when it comes to your financial health.
Net Worth is essentially an estimate and not everyone uses the same type of figures. Some people don’t include vehicles like we do or they may leave out the assets inside the home like we have. It depends on what you want to calculate or what you can sell today and make money on.
Why not go ahead and calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder 2012)
Why you should set financial goals
Below is our progression chart towards our goal of a million dollars net worth which should happen according to our net worth calculations by Mid August 2017 (this year).
Setting goals are the only way we work towards achieving what we want to get done as a couple around the house and in our financial life. I know that without them we would be flying by the seat of our pants which wouldn’t work for us.
I find it’s much easier being held accountable when I share what we need to do with all of you. Yes, my wife refers to the list when she asks what I plan to do next. I’m not sure if that’s a good thing for me or not.
In the graphical representation above, I have used excel to provide a trend line prediction based on the past years monthly net worth figures.
Using figures from our actual net worth gains over the past 12 months (the solid blue line) it has suggested that by the end of this year (2016) we should be around $900,000.00. We fell short of this goal by $9000 which is perfectly fine as it was only an estimated goal based on current financial trends. This can change over the course of the year and is only a prediction based on known historical figures from our finances.
According to the chart, we should hit the million mark in or around August to September 2017.
This is nice to know but anything can happen over the next year. Hopefully with some careful planning we can achieve this goal and go beyond it.
Do you set financial goals for the year?
Our financial numbers
When budgeting anything is possible, we are proof of that although we still have a long way to go in our journey. These are our numbers and our goals, not a means of comparison towards your own goals to others target goals.
We don’t care how much money others make or if they have a high net worth or if it is lower than ours as it’s not a competition. I hope our experiences perhaps will help guide you along your financial path working towards debt freedom.
Different financial paths
Not everyone has the same path in life. Some of you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back.
Others may have divorced, lost money in the stock market or other investments, suffered job loss, fell ill or injured on the job etc. but you can’t let that stop you from achieving your financial goals.
Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start and that’s OK too. Remember what I said, “It’s not about how much money you make, it’s how you save it”.
Focus on you and don’t let the evil eye of money jealousy or keeping up with the Kardashians cloud your vision. No one cares about your money as much as you do so don’t waste your energy trying.
The only reason people accumulate wealth is because they know how to save or invest it wisely even if they did inherit money or win the lottery. The smallest improvements should mean big strides in working towards reaching your goals.
Sometimes we have to fail in order to learn and we’ve all been there. Money can be an evil force for some people especially those who have a negative attitude towards their own financial situation.
I urge you to be optimistic and little by little with determination you too should see improvements, if you want that to happen.
Net worth updates 2017
Below you can click the links to read previous months net worth updates 2016 to see how we made out following our own financial rules.
In the last year since February 2016 our net worth according to our figure has grown $118,920.69
February 2017 $906,365.71 – February 2016 $777,447.95 = +$128,917.76
That’s all for this months net worth update but please check in at the beginning of April 2017 to see how we made out in March 2017 and what has happened to our finances since.
Remember: “It’s Not About How Much Money You Make It’s How You Save It“
Check out our past actual Monthly Budget Updates to see how much money we earned and where our money went.
Image courtesy of Blogpiks.com