What if you could create your own stimulus that could propel your family to the next level while many around you will obviously be falling behind and slipping down into poverty? After all, there are some truly tragic things going on with the economy. It’s not just a word about the nation’s well-being. Economy is about your family.
Think of today’s blog as only a start on turning the tables on the economy. You can do this!
Start by looking at your spending over the last three to six months. Actually sit down and put it in front of you. Split things into “piles:”
Be honest with yourself. Look at the wants “pile.” These represent areas where you can save in the future, and you should begin now. This does not mean you can’t have things you want. It means that you are going to start a new path and work on how you look at money, assets and liabilities.
Call each company that sends you a bill and ask for a way to reduce the bill by 10%. Seriously. Companies do this all the time. Tell them you have been hit hard by the recession and you want to keep paying them. However, tell them that you must have a reduction. Take any reduction they give you and add it to your savings.
Take the money in these two areas above (“wants” and “bill reductions”) and begin using that amount monthly as your regular monthly savings. This is a quick start on savings.
Your short-term goal will be to build the proper emergency fund. That should not be 3 to 6 months of expenses (the amount you hear the most about these days). That amount is the same amount that old school financial guys in the 1980s and 1990s recommended.
The world has changed. The United States has changed. You need 15 to 18 months of expenses in your emergency savings fund. Why? Because it may take you longer now to replace your income should you lose your job than at any time since 1929.
Turn the tables on the credit card companies. Do this by calling each of them (if you have more than one) and letting them know that you want to pay them off, but you have been hit by the recession. Tell them you need to ask them to reduce your interest rate to 0. If they won’t do this, ask for a supervisor. Keep after them. You may not get it done in one call. Make it clear that you want to pay and you don’t want to have to declare bankruptsy.
Use patience and your goal (to reduce or eliminate interest) to wear them down into “helping you.” However, be willing to stop using your credit cards.
Begin a systematic way of paying the most on your highest interest credit card until you have paid it off. Pay the minimums on the other cards until you pay the highest off. Then, attack the next one. Do this until you have eliminated the debt.
1. Build your emergency savings.
2. Join your 401k.
3. Reduce and eliminate debt.
4. Look to purchase assets (those things that can produce more of their source element or generate more wealth without your help).
5. Add regular and automatic investment into a Roth IRA or individual IRA to suppliment retirement investment. 401k and social security will not be enough.
EDUCATE YOURSELF TO TRUE FREEDOM
You can do the most for yourself simply by using the internet and your local library to help learn how to save more each month and invest wisely for your future. Little amounts matter a lot.
You can check out other free blog at http://www.stickyasset.com/blog (where you can sign up in the e-mail window for the FREE monthly e-saver) and join our FACEBOOK GROUP called “Live The Lifestyle Your Family Deserves.” Just search for it on Facebook and join for free!
You can also purchase “How To Survive Any Financial Crisis” for only $4.95 for a limited time only at http://www.middleclassmoney.com. It is the only thing we sell on any of our blogs or groups, and $4.95 is the price that’s right. We know we could charge more, but we want to be accessible to anyone who truly has an interest in learning the true secrets of the rich when it comes to dealing with money and producing wealth. Our message: It does not matter who you are – you can build wealth.
Thank you for reading our little blog. And good luck!