Awareness Is The First Step On The Path
Have you ever heard the phrase, “ignorance is bliss”? While this may be true for a short period of time, reality will catch up to you, sooner or later. Unfortunately when it does catch up with you, it will probably sting a bit.
“The first step to changing your financial course is to recognize that the direction you are currently pursuing may be a dead end. This realization is often much more difficult than it sounds. While most of us have a general feeling for our level of financial fitness, we are often in a complete state of denial regarding our financial weakness. With the overwhelming availability of consumer credit, home equity loans, and debt consolidation loans, we are able to successfully mask the impact of our overspending and poor financial decisions.”
It is fairly easy to see the state of our own physical health, after all we look in the mirror every day. It’s not always as easy to see our financial health. It takes more effort to candidly assess your financial health. It takes courage to really look at your financial state and even more to commit to changing it.
“Now is the time to recognize the need for change. To help add clarity to your general thoughts, candidly answer the following questions:
- Do you carry over balances on your credit cards from month to month?
- Have your credit card balances increased year after year?
- Have you participated in a home equity loan or debt consolidation loan in the past three years for the purpose of paying off consumer debt, only to have consumer debt return?
- Do you schedule the payment of monthly bills around the receipt of your paycheck?
- Do you pay your bills and take care of all monthly expenses before you determine an amount for savings?
- Have you used credit cards or charge accounts to fund major events or purchases during the year, including holiday spending and vacations?
- Do you make major purchases based on the amount of a monthly payment rather than a cash purchase price? Have you borrowed money to purchase an automobile and then purchased a different one before the previous vehicle has been paid for?
- Do you constantly monitor your bank account balance to make sure you are not bouncing checks?
If you answered yes to any of the above questions, you are very likely following the masses.”
Unfortunately this path is leading you nowhere… and coming to this realization is the first step to achieving true financial fitness.