2. Sometimes we look at
those people who get in
trouble financially and
wonder how they ever
got to that point. We
think, “That will never
happen to me,” or
“there’s no way I’ll ever
approach a loan shark.”
3. The thing is, getting into
debt is one of those
things that sneaks up on
you and when you finally
realize you’re at that
point, it’s too late. Kind of
like that familiar story of
a frog in boiling water.
4. We need to identify these
“symptoms” of “financial
sickness” early so we
can get “treatment” and
start working towards
being financially healthy.
5. 1. You are constantly discontent.
Do you find yourself constantly wishing you
had more? Is it a challenge to watch your
friends and relatives upgrade to nicer cars,
bigger homes, better furniture or even more
expensive independent schools for children?
6. Decide today that you will no longer live to
impress others by spending money you don’t
have on the things you don’t really need.
1. You Are Constantly Discontent.
7. 2. You Can’t Afford To Lose Your Income.
If today you, or you and
your spouse, lost your
income, would you be
able to survive for the
next 6 months only on
what you have set aside
in your savings? If the
answer is a definite NO,
you may be overspending
on today’s wants while
sacrificing tomorrow’s
needs.
8. Track your spending for
the next 30 days to reveal
all potential “waste”
areas. Your goal should
be to eventually have 6
months of your living
expenses set aside and
available in case you
experience a complete
income loss.
2. You Can’t Afford To Lose Your Income.
9. 3. Credit is your best friend – or so you
think.
Are you using one credit
card to pay off another
one? Is your monthly
credit card balance
growing instead of
declining? If the answer
is yes, then you are
most likely financing a
“beyond your means”
lifestyle.
10. First make a decision to
stop. Leave your card at
home if you have to and
away from your computer.
Create a realistic debt
repayment plan and do
not pick up a credit card
until you have paid your
balances off and are ready
to be a responsible
consumer.
3. Credit is your best friend – or so you
think.
11. 4. You don’t have a pre-determined plan
to manage your money.
Saving is truly the foundation of healthy
finances, yet so few of us actually save. One of
the most common excuse for not saving is “I
have too much debt.” What people don’t
realize is that, unless they prioritize putting
money aside, debt will always be an issue.
12. Apportion 10% of your monthly income towards
an investment account that you NEVER TOUCH.
This is seed money for your financial freedom
and should be used only to grow your wealth.
Another 10% should go towards long term
savings for those big ticket items you need or
for an emergency fund.
4. You don’t have a pre-determined plan
to manage your money.
13. 5. You spend more than 25-30% of
your gross pay on your mortgage.
Here are two rules of
thumb to follow in
regards to mortgage
payments: – Stay
within 25-30% of your
gross income – Are
you a two-income
family?
14. Buy as if you had just
one income. This way
you are creating
margin in case of a
job loss or if we ever
experience an interest
rate hike.
5. You spend more than 25-30% of
your gross pay on your mortgage.
