Last week I published an article inspired by my cut-up pumpkin on emergencies. While there are emergencies in life that can result in a financial crisis, majority of people with money issues did not start overnight. Many of the situations we find ourselves in are due to continuous bad habits that may be difficult to quit at once.
Despite the situation that you are facing, there is always hope if you make a conscious decision to start afresh. Take out a blank page and begin to re-write your story. The process may be difficult but the hope of a better future is worth trying.
This is what I decided to do with my pumpkin. I could hold onto the damaged pumpkin and try and hope it recover and in the process waste water and my energy or I could simply uproot it and make room for new growth.
To effectively start over with regards to your financial situation, you need to take an honest look at your financial affairs. This involves gathering all the information that you have at your disposal: Your current income level, your current debt level , your savings , your investments, your fixed commitment and all your monthly expenses. Putting all that together will help you as it gives you an indication of how well off you are or how worse off you have been.
The assessment process can be done by oneself or it can be done with an assistance of a friend with financial background. To date, I have really only helped two people that have passed this stage. A lot of the time people want to be better with their money but do not want to do the hard work. They’re either are just too lazy to do it or they deliberately withhold the information because they are ashamed of being judge. Unless you are honest at this stage and have someone to hold you accountable, you will slip back in your old self.
One also need to ensure that in addition to the conscious decision to start over, they are also willing to let go what has been and embrace what is to come. I had to give up the pretty yellow flowers that greeted me every morning when I come out to water for a blank pot with a spinach on the side. However that blank plot with the spinach is fertile ground in which new plants will blossom. Similarly, you need to give up the luxury life that was getting you into debt in order to begin saving for your future as well as start investing.
If you have been considering starting over, this may just be the right time to start. Do whatever it takes to turnaround your financial future. They say, the best time to plant a tree was 20 years ago but the next best right time is now.
Do not delay, just do it.