If you have bad credit and/or a lot of debt, you have the wrong attitude towards money. Here is a great post about deciphering a want vs. need which probably explains a lot of how you got in trouble in the first place.
By going through the process of preparing a budget and figuring exactly where every penny has been going, how much debt you have and how much waste there has been you will be able to change your ways. And hopefully never get yourself into a similar situation again.
Do you get paid a decent amount, but never have any money and nothing to show for it? Where is your money going? When you consider the things you might have been able to do with that ‘lost’ money you will see that making smart choices is so much more beneficial. Work with me on this and let’s figure out what making smart choices really means! You can get caught up on the Budget 101 series here.
Often, the amount of money that people waste on minor expenses such as daily coffees and eating out can represent a nice vacation once a year and surely that would be much nicer than swimming in a mountain of debt and a poor credit score, wouldn’t it?
“They who are of the opinion that Money will do everything, may very well be suspected to do everything for Money.”
– George Savile
Money is not something that can solve your emotional problems. And spending money on luxury items that aren’t necessities might give you some short term satisfaction, but the long term stress and worry that excess debt brings with it is totally unnecessary.
It is your choice to take charge of your finances and it is as simple as starting a budget and setting realistic short term and long term goals. And then work every single day to make those goals become a reality.
Money can make you very happy and provide an excellent lifestyle if it is managed properly, but even those who are earning huge incomes frequently fall into financial strife due to an inability to manage their finances. If you follow the steps you set out for yourself in your budget, you will be better off than the majority of people. In the long term you will be able to afford more of the things that you desire than you would do otherwise.
Your attitude towards money and debt is the biggest contributor to the quality of your lifestyle. I wrote this post don’t spend money like you are a millionaire even if you are one about four years ago, and if you find that you need to change your attitude about money, you should definitely read that post.
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Disclaimer: I am not a financial professional and don’t play one on tv. The information provided on Single Mom on a Budget.com is my own opinion and should not be construed as fact or advice, and you follow it at your own risk. You are responsible for your own personal finances and should not rely on this site to make the final decision for you. This blog is my means of communicating my experiences to you and to prompt you to think and consider your own situation, but you are 100% responsible for any actions you take. Always consult an attorney or tax professional regarding your specific legal or tax situation.