Financial Fragility and Budgets

Most of us are financially fragile and would not be able to come up with $2,000 in 30 days without having to resort to borrowing money or pawning/selling items that we own. Ask yourself how easy would it be for you to come up with $2,000 to pay for a necessary car repair or home repair. Would you be able to take it from a savings account or would you have to put it on a credit card or borrow it from family? If it’s the latter, it’s time to take action. Here’s how:

  1. Don’t beat yourself up. While there are plenty of people out there who can be harshly judgmental, there’s not much to gain by playing the blame game. However, take responsibility for your situation, but don’t waste time and energy by dwelling on your mistakes. Shame will demotivate you faster than anything – focus on what you can learn and what you can do to fix the problem instead.
  2. If you don’t already have a budget, now is the time to start. Get in control of where your money is going, as soon as possible so that you can get yourself on firmer financial ground.

A few things to remember to make a successful budget:

Account for all of your expenses, including ones that only come up once a year or so, like car registration fees and holiday gifts.

Look for expenses you can trim or eliminate altogether. Even if you’ve been paying for them up to now, remember that you are financially vulnerable. This situation calls for some cutting back until you’ve got things under control.

Allow yourself an allowance to spend on miscellaneous personal expenses to keep this plan sustainable. This doesn’t have to be a huge amount. Many do just fine (depending on their financial circumstances) on having $20-$100 a week to blow on anything they wish.

More to follow next week.

Think and do activities that demonstrate your freedom.

This has been our money kingdom financial perspective.

May I AM THAT I AM GOD prosper you.

‪#‎MKFP‬

Financial Fragility and Budgets