04.09.08 | The Best Financial Advice You’ll Ever Get
Ready? Here it is:
Relax and take a deep breath.
When faced with financial troubles remember that it’s only money, a man-made symbol of value which is traded for other items with perceived values. It’s not your life, your health, your family, your pet or anything that nourishes your spirit. It’s not always easy but if you can remember that and keep financial troubles from getting you down and letting your emotions rule your head you’ll come out of them far better off than if you let yourself get so down and depressed that you can’t see all the options in front of you.
The surest way to get into a financial bind is to let a small financial scratch become a major wound due to panicking or over-reacting with an emotional response. In other words very few financial struggles need to be resolved in 5 minutes unless they have to do with “Vinnie the Bookie” finally catching up with you in a dark alley. In most cases there’s a short term band aid and a longer term solution needed. It’s always a good idea to write an issue down on paper and then sleep on the problem or at least wait until your emotions subside about whatever it is. You’ll find your perspective will be a little different and you’ll see options you didn’t see before.
I have a friend who recently got into a bind with making a couple of late payments to some credit cards. He had a handful of cards between store cards and regular credit cards and was having trouble making his payments. He panicked went out and signed up for a consolidation loan with an interest rate higher than his credit cards had but it offered only one payment and a lower total payment than he was currently required to pay. For that benefit the loan was also going to make him pay more than double what he borrowed when all was said and done.
When he told me what happened I sat down with him and he said he didn’t have a budget so we downloaded the budget from http://www.studentplatinum.com/budget-template/ and started to look at his income and expenses. Once it was all in front of him he saw that he made more than enough money to cover his credit card payments and by listing them on his budget he was able to remember their due dates. I then gave him the credit card debt reduction plan and he figured out the smart way to pay off his credit cards. He took the money from the loan and paid back the loan and then started using a simple budget. Four months later he sent me an email telling me he paid off 4 of his 5 credit cards and was able to get the interest rate lowered on the fifth and was doing great.
The lesson is that there were two problems, one short term and one long term. He made a couple of late payments and that’s bad. In the short terms he needed to make the payments, call and see about getting the fees refunded but then calm down and take a look at the big picture. Long term he had to decide why was struggling? He thought he didn’t have enough money but really didn’t know where his money was going. In his panic he almost did something that was going to cost him a lot more money in the end to fix a problem that was really just a behavioral issue with the way he managed his money (it might have helped if he won a scholarship on www.ScholarshipPoints.com by entering the code: BESTIPEVR worth 10 points).
So remember relax, it’s only money. If you get yourself into hot water you can get yourself out. There will be penalties but you’ll want to make them as small as possible and to do that you need all the time available and a clear head to get the right solution. This doesn’t just apply to debt either. Letting your emotions cause you to buy a stock, a pair of $500 shoes or that timeshare in Kosovo is bad news. Think it over first and decide when you’ve had time to do a sanity check.
It is with of great value to have a blog of this such.It has really made me more relaxed about money in terms of being prudent with it..I have always been faced with one challenge or the other as regards money issue but i think here is a sigh of relief as a blog of this such have been proveided..I recommend something of this such to people as it will not only make them be more cautious about money but also of the opinion that tough times never last only tough people do..Cheers!
April 9th, 2008 | #
It’s funny that this is the first article I read, considering I was pulling my hair out five minutes ago about how many loans I need to take out. It really is true when you think about the possibilities rather than the digging yourself in a hole aspect of owing money. I’m going to use these websites you linked, they couldn’t have come at a better time for me. Thank you!
April 9th, 2008 | #
This was a eral good article.
April 9th, 2008 | #
This advice was very helpful to me in more ways than one. Overreacting can do nothing but cause problems for a individual so having a cool head on your shoulders can effeciently get you through whatever situation your in.And take it from me that I need a level head because I’ve been known to overreact about alot of things besides financial issues.
April 9th, 2008 | #
This makes a lot of sense. I enjoy this.
April 10th, 2008 | #
Pretty good article and giving tips on Finacial problems.
April 10th, 2008 | #
RHATS THE BEST ADVICE I HAVE EVER HEARD OF . THATS SOMETHING TO THINK ABOUT BEFORE YOU GO OUT OVER THE LIMB AND GET INTO DEBT. I AM LOOKING FOR HELP AS WELL.
April 11th, 2008 | #
This has a great point, money is just money you shouldn’t let it rule you.
April 11th, 2008 | #
i think this will help alot of young people. leaving home and going off to college.
April 12th, 2008 | #
my daughter is in finicial problems because creditors make it so easy for young people to get credit
April 12th, 2008 | #
This was very interesting.
April 12th, 2008 | #
Very interesting!
April 12th, 2008 | #
Interesting and informative
April 12th, 2008 | #
it’s ok
April 13th, 2008 | #
This was really helpful because right now I am struggling between going to Grad school or not being in debt and I realized my life and education is more important than a manmade symbol of happiness.
April 13th, 2008 | #
Thank you
April 14th, 2008 | #
I think its very true. I always seem to overwhelm my self with what needs to get paid before I even know the cost.
April 14th, 2008 | #
Nice tip,great advice!
April 14th, 2008 | #
Thanks for the sanity check! I enjoyed the blog and perhaps my best tip ever!
April 14th, 2008 | #
besttipevr
April 14th, 2008 | #
very good information
April 14th, 2008 | #
This is a good article. It helped me out too because I am in a hard spot right now with no financial help. I’m trying everything I can but I know that it’s only money, and money is only paper, and an education is much more important. I’m going to feel better about myself, and someday i’ll have a better job than I would without a higher education which is going to inable me to pay off my debt but someday be on a regular money spending situation..
April 14th, 2008 | #
BESTIPEVR
April 14th, 2008 | #
Very interesting
April 14th, 2008 | #
thanks for the tip
April 15th, 2008 | #
very interesting…good thing i dont have to owe anyone anything.
April 15th, 2008 | #
a very nice tip i may say.so,keep doing this.
April 15th, 2008 | #
keep this up please.
April 15th, 2008 | #
i enjoyed the tip and it was veryhelpful
April 15th, 2008 | #
Thanks, credit card guy. When you think about all the things you have to pay for it becomes overwhelming.
April 15th, 2008 | #
April 15th, 2008 | #
Good advice, don’t know where to enter BESTIPEVR.
April 15th, 2008 | #
Interesting to know and small spending can add up over time, so budget wisely.
April 15th, 2008 | #
This was actually pretty interesting useful. Its really hard with the college stuff right now and financial aid has been a problem.
April 15th, 2008 | #
I wasn’t given all that much financial aid at umass amherst and that is where i want to go. this article gave me good tips on that subject.
April 15th, 2008 | #
This was really good advice. Thanks
April 15th, 2008 | #
very good article
April 16th, 2008 | #
I think that the article was very helpful to me. I know where to find informations about credit cards at if I ever need them. Thank alot
April 16th, 2008 | #
this was an intrestng blog and very informative
April 16th, 2008 | #
Thanks for the advice. Any more advice concerning scholarships?
April 16th, 2008 | #
This is good life advice
April 16th, 2008 | #
Thanks for the information.
April 17th, 2008 | #
this is a very helpful article
April 17th, 2008 | #
This article gave me some great insight on how to handle my finances.
April 17th, 2008 | #
oh, now everytihng makes sense. thanks a lot.
April 18th, 2008 | #
I likey likey, *printed…
April 18th, 2008 | #
very useful information
April 19th, 2008 | #
I have never read anything like this before. This article definetly helps put things into perspective. Debt can be overwhelming. Now I know not to let my emotions get in the way and take the rational approach by creating a budget. BESTIPEVR
April 19th, 2008 | #
thanks for the info always good to have a refresh
April 20th, 2008 | #
This article was very helpful
April 20th, 2008 | #
Great article on financial problems. I agree dont let your emotions get in the way of makeing good decisions.
April 21st, 2008 | #
this article was very helpful to me. ithink that others in this situation will find this helpful as well.
April 21st, 2008 | #
:O
April 21st, 2008 | #
Very interesting article. It was helpful. I really liked the budget template…definitely something i will use!
April 21st, 2008 | #
Very helpful article. I liked the budget template….definitely something i will use. Thanks!
April 21st, 2008 | #
Very helpful article. I liked the budget template.
April 21st, 2008 | #
The truth hurst sometimes but this truth is very pleasant and appreciated.
April 23rd, 2008 | #
Yeah, Me too.
April 23rd, 2008 | #
i really agree and enjoy a quick reminder of a present situation and a great boost is the results keep a positive out look and a open mind on on coming bind naggers
April 24th, 2008 | #
As you said relax and think Budget very helpfull
April 24th, 2008 | #
thanks credit card guy…pretty good advice!
April 24th, 2008 | #
I thank you for this blog, because it helped me with the financial problems I am having.
April 25th, 2008 | #
very interesting article, and very helpful. this is why i will not let my 2 older kids in college get credit cards. thanks!!!
April 26th, 2008 | #
my mom made me read this article, very imformative. thanks
April 26th, 2008 | #
This article was really helpful! It came at the perfect time and I need to try and remember not to stress and to just think rationally. Thanks so much!!
April 26th, 2008 | #
Thanks for the tip. I will put them to work by using the budget template and try to get out of debt so I can pay my continuing education.
April 26th, 2008 | #
Very helpful article. I liked the budget template.
April 28th, 2008 | #
interesting
April 28th, 2008 | #
interesting…very helpful! Thanks
April 28th, 2008 | #
MONEY IS THE RULE OF ALL EVIL!!!!!!
April 29th, 2008 | #
very good information!
April 29th, 2008 | #
This source of advice helped me tremendously.
April 29th, 2008 | #
This has helped me a great deal with not just financial issues but in general.
April 29th, 2008 | #
GREAT STORY!
April 29th, 2008 | #
This article was very informative, thanks!
April 29th, 2008 | #
good article.
April 29th, 2008 | #
Very Helpful!!!
April 29th, 2008 | #
Very Insightful
April 29th, 2008 | #
Finance is always a big problem. Now, money controls everything.
April 29th, 2008 | #
WONDERFUL, WONDERFUL ADVICE!!!
April 29th, 2008 | #
good article.
April 30th, 2008 | #
nice job they did in telling the information clearly.
April 30th, 2008 | #
nice comments.
April 30th, 2008 | #
this is quite interesting information
April 30th, 2008 | #
VERY GOOD!
April 30th, 2008 | #
VERY INFORMATIVE ARTICLE
April 30th, 2008 | #
very informative
April 30th, 2008 | #
have to get my parents to read this one
April 30th, 2008 | #
Thanks for the info.
April 30th, 2008 | #
My mom has taught me how to budget and not to use credit cards. I get tons of offers and I just shred them without giving them a second thought.
April 30th, 2008 | #
i like
May 3rd, 2008 | #
WONDERFULLY WRITTEN.
May 6th, 2008 | #
Great Ideas I plan to use!
May 6th, 2008 | #
Great
May 6th, 2008 | #
Great Tips for college students!!
May 7th, 2008 | #
Great advice. Thanks.
May 7th, 2008 | #
So true. Debt can be very frustrating but there’s always a plan. Thanks.
May 9th, 2008 | #
its totally great article ,valuable as well as precious.
May 11th, 2008 | #
good advise
May 12th, 2008 | #
Thanks. I have just started to dig my hole and needed an alternative to the “hole”.
May 12th, 2008 | #
really good information
May 15th, 2008 | #
YEAR INTERSTING
May 16th, 2008 | #
Thanks
May 16th, 2008 | #
Thanks, very helpful.
May 17th, 2008 | #
THANKS TO A VERY INTERESTING ARTICLE, I HAVE LEARNED SOMETHING NEW EVERYDAY.
May 17th, 2008 | #
Great tip for college students
May 21st, 2008 | #
good…it was helpful
May 22nd, 2008 | #
these articals all have very good points and make it easier when your in a rough situation
May 27th, 2008 | #
Yep, pretty interesting I must say.
May 27th, 2008 | #
great advice!
May 29th, 2008 | #
very good artical.
May 30th, 2008 | #
very informational article
May 31st, 2008 | #
very interesting!
May 31st, 2008 | #
excellent info
June 2nd, 2008 | #
thanks for the informative info.
June 4th, 2008 | #
As a recent college graduate, I found it’s not to easy for credit card companies to lower interest rates, even when one does not miss payments and has decent credit. Be careful in assuming your credit card companies will work with you. Some will, most won’t. They are a business and in the end, they just want to get paid.
June 5th, 2008 | #
it was ok
June 6th, 2008 | #
such a great article
June 6th, 2008 | #
I SEE ALL THESE IN CONTENT AND IT IS VERY GOOD BUT WHAT IS THAT I DON”T UNDERESTAND IS THAT WHAT IS THE CRTERIA TO GET THESE LOANS AND CREDIT CARDS SO WOULD YOU PLEASE BREFLEY TELL ME WHAT IS THE BEST ADVICE WOULD YOU GIVE ME AND WHICH ON IS BEST FOR ME PLEASE TELL ME ALL SEE I AM REALLY HAPPY TO KNOW ALL ABOUT YOU THANK YOU SO MUCH FOR NOW BUY BUY!!!
June 11th, 2008 | #
Good article… thanks for the info.
June 19th, 2008 | #
Thanks!
June 26th, 2008 | #
tHANKS gOOD iNFO
July 2nd, 2008 | #
Thanks so much!
July 2nd, 2008 | #
credit cards are dangerous in the wrong hands
July 3rd, 2008 | #
Good Advice, and NO CREDIT CARDS
July 9th, 2008 | #
No one in their right mind would even consider giving me a credit card; I have too many medical bills. Budgeting is what I live by with two toddlers in the house and recently being laid off from my job. Sometimes you have to look for oportunities instead of taking the ones thrown in your face: such as credit cards.
July 24th, 2008 | #