Economic Madness

We as individuals as well as a country are in the mist of economic crisis. Many people are loosing their jobs, their homes, as well as their family. When I say family this occurs when the bills pile up and becomes overwhelming this puts an overwhelming amount of stress on couple, which over time leads to fighting and the blaming game.

So how do we fight back, to keep our homes and family’s together; first thing is to keep the lines of communications open, not only with your spouse, but with your creditors as well, even though it does become annoying and frustrating.

For starters, figure out a budget, which is very difficult when you have no cash to work with, but write down the bills that MUST be paid such as your mortgage or rent, utilities, including your cable if you use DSL for any sort for work, otherwise if you don’t need it, get rid of it.

Image via Wikipedia

Now you know the bills that must be paid in order to keep a roof over your head, now lets look at the others items, car payments, insurance, or credit debt, now consider what payments are most important. If you need your car, then car payments and car insurance is next in the line of priorities, so these are the areas that you need concern yourself with.

1. Mortgage or rent
2. Utilities
3. DSL if you need it for work. Same goes for telephone and cell phones.
4. Car payments
5. Car insurance
6. Credit card debt.

It is not easy and it seems to be getting worse, and for many it is depressing, but again if you communicate, and can alleviate the stress levels.

Once you have this part understood by you and your spouse, then you need to decide what other expenses you have, decide if you really need them, such as membership at a local GYM, online games that require a monthly payment, vacations and other activities that require money.

These cut backs may be upsetting, but are necessary, and as hard as it may be for you, and your spouse, consider how this affects your children and find an easy way to help them to understand the situation. If thing are really bad, they need to know, perhaps you can inquire if they have any ideas to help cut back, consider their ideas since it does help them feel like they are a important member of the family.

Image via Wikipedia

If you can start to teach your children about finances, by giving them an allowance this will help them to budget their money and to save. When they need extra money explain to them that they need to budget their money, and never front them money, because this teaches them to the “ideals similar to Credit Cards”.

Image via Wikipedia

You many not realize it now, but credit has and is the down fall of many families financial situations, credit when used should be handled responsibly unfortunately we have become reckless with our credit. This has many of us paying late fees, and over the limit fees. Which just add to our own stress, some turn to debt consolidation programs, while other are forced to claim bankruptcy. It is not easy, but as long as you take care of the roof over your head, and the basics, and continue to budget, while changing your spending habits you can hope that some where down the line, things will fall into place and eventually fall into place.

It is also up to you, how resourceful are you at making or finding ways of making money, it is not impossible it just requires effort.