Image via WikipediaI have been watching the videos coming back from Japan depicting the devastation. Peoples whole lives completely erased. Seeing pictures of cars and houses going past in the oncoming waters. Then seeing them as they come back and go out to sea. What do they have left? The house is gone so is their cars, clothes, furnishings, and every physical thing they have.What if this happened to you? Would you want it to happen to you? I believe there are some people who would want this to happen. Not the tsunami, but a financial tsunami. Imagine no more mortgage. No more car payment. No more bills. Your totally free to start over. Your financial tsunami has given you a clean slate, a fresh start. Your getting a do over to get it right this time.
Think about it for a minute. You still have your job, your income. What would you change this time around? Would you buy the big house again? Or get something more affordable so you can save more for retirement. What about the expensive car, would you get another one or a good used car this time. Would you save more in your 401k? How about living within a budget and not going into credit card debt.
Many people are doing the money thing right, but many of us have screwed it up big time. A fresh start sounds pretty good. Getting a fresh start can still be done without a tsunami. It takes a little discipline and a plan.
To make it happen you must be sick and tired of being sick and tired. You must be ready and determined to turn your finances around. Without this complete commitment you will not succeed. Are you fed up enough to make it happen this time?
If you are ready then the first thing you must do is make a spending plan, in other words a budget. At the top of the page you write your income and list down the page, in priority, what you need to pay. You pay each bill with the money and when the money runs out you don't spend anymore. Of course credit cards are cut up and thrown out. No more added debt. This time you will live within your means and no more debt.
For further information on budget creation read this post on making a budget. Here.
This is the first step on a journey that will take you on to be financially successful. You won't need a tsunami to clean your life up. You are capable of doing it your self.
No, I would not want a financial tsunami. I have 50% equity in my home, and my cars are almost paid up. I don't believe it's just about the money, although I get your point about people wanting to start over.
ReplyDeleteI would do a few things differently, but no, I don't want to start over.