The New Year is fast approaching. Despite the fact you don’t have time to think about it due to all the holiday preparations and celebrations, it’s something which should be forefront in your mind. Especially if you and your young family had some financial difficulties during this past year. Think for a minute — do you want to have the same problems come January, or have them exacerbated by ongoing poor decisions?
True, if you were supporting yourself alone this may not be an issue. However, you have a spouse and children to think about. Do you want to burden them with continued worry about finances and possible circumstances should a bill not be paid or money be had for a needed repair? Don’t you want them to feel comfortable and secure? In the end, what do you want for your young family in the New Year?
Should you want to start the process of correcting your issues, you want to drop the egg nog, stop wrapping the gifts, and work on a few things to turn everything around.
1. Admit you have a problem. Well, maybe not you alone. Perhaps it’s the way you and your spouse handle money on a regular basis. Do you tend to borrow from yourself, thinking you’ll have the money available during the next paycheck? Do you rely on credit? Have you halted paying some bills in order to make ends meet? Should you answer yes to one or all of these questions it’s time to admin you have a financial problem.
2. Start planning. The dreaded word for you — budget. You may not think you need one, yet your current financial debacle says you do. What you have available and what’s owed needs to be seen in order to gain a handle on your spending and start making a dent in your debt. It doesn’t have to be complicated. A simple spreadsheet is all that’s needed to help work this out.
3. Think of your legacy. So many people these days will leave massive amounts of debt with their spouse and children when they die. Do you want to be one of those people, or do you want them to be comfortable and secure as they mourn and prepare for their next stage of life? The solution, other than the budget and intensity to pay off the debt, is to purchase a life insurance plan. If you’re in good health, don’t smoke, or don’t do drugs, a term life policy ten times your current salary may only cost a few dollars a month. And when you pass on, the money will be immediately available to your family to help pay off any remaining debts and set them up for the next few months or year while they work on their own plan to figure out what they want for the future.