Were You Broke When The Economy Was Good?

Many people were struggling financially when the economy was booming, but are still struggling now. Suddenly though, they feel very comfortable blaming their situation on the bad economy.

Conduct an honest self-evaluation. Are you broke because of the bad economy or because of the following other reasons?

1) Mismanaging Money

Problem: Some people are very guilty of overspending on unnecessary items. Others have no idea what a budget is.

Solution: Write down all your transactions, and total them up at the end of the month. It sounds tedious, but in two months you'll realize how much money you waste. $300 on fast food, $250 on video games, $500 on clothes. You'll be a changed person forever.

2) Mismanaging Your Personal Credit

Problem: Many have ruined their credit with unpaid bills and loans, late payments, bankruptcies, and more. Now they can't even buy a car (let alone a house) without paying 20% interest rates.

Solution: Get a copy of your credit report and a calendar, and come up with a 3-5 year plan to fix your credit. Call your lenders and tell them you are serious about paying them back, and ask them to reduce what you owe. Many times, they will comply. Remember that just $50 a month for 4 years can pay off $2,400 worth of debt.

3) Not Learning A Trade Or Skill

Problem: Many never took advantage of the opportunity to attend college or learn a trade. Now, they are stuck with minimum wage jobs and no expertise to start a company of their own.

Solution: Discover what skills you are naturally good at, and teach yourself more. Find the right books, take an online class, earn a certification if possible, and get rolling. Its never too late to start.

4) Not Saving Money

Problem: Too often, people don't put money away. Many don't even have savings accounts, let alone a retirement plan.

Solution: It may be sunny for a while, but one day it will rain. Hard times are inevitable. Put as much money as possible away, so that when you need it - it will be there. Think about it: Had you done this 5 years ago, you'd probably have a little bit of money to get you through this bad economy. Open up a savings account today, and use it.