Money Makeover

Money Makeover
You come home after a​ long day at​ work only to​ find numerous unwanted bills in​ your mailbox .​
As you​ sift though them,​ you​ start to​ get that sinking feeling .​
You know there is​ no way you​ can afford to​ pay all of​ them on​ time .​
It's at​ this time that you​ remember that you​ have a​ vacation coming up and you​ want to​ make the​ most of​ it .​
What you​ really need now is​ a​ money makeover and this is​ how you​ do it.
No makeover is​ ever complete without a​ before picture .​
Take a​ financial snapshot,​ sometimes called a​ net worth statement .​
Imagine you​ are going to​ sell everything you​ own and you​ are taking that money to​ pay off all your debts and normal monthly expenses like rent,​ cable and telephone bills .​
Then count what is​ left,​ if​ you​ didn't know what net worth meant before,​ you​ sure will now.
The next step to​ take is​ to​ make a​ plan .​
You need to​ write down all the​ steps you​ need to​ take to​ achieve a​ goal .​
You're finances should be reasonable,​ specific,​ and realistic .​
There should be a​ time frame for all your goals so that you​ know that you​ can handle all those payments that need to​ be made.
This step is​ going to​ be the​ most difficult .​
You really have to​ stop spending! That means most if​ not all those luxuries must end,​ the​ manicure or​ pedicure,​ the​ monthly hair cut,​ the​ shopping every payday,​ that all has to​ stop .​
You are never going to​ get financially caught up if​ you​ just keep spending!
If and when you​ do spend,​ which should only be for necessities at​ this point like groceries,​ keep track of​ what you​ spend .​
Write down everything,​ this will give you​ a​ good visual like a​ monetary blueprint .​
You might even be able to​ find ways to​ cut corners and save.
And that is​ ultimately what everyone needs to​ do .​
We all need to​ save,​ it​ never occurs to​ people that an​ emergency can come up and you​ will need extra money to​ cover them .​
Let’s say you​ need to​ go to​ the​ doctor and it​ turns out you​ need surgery .​
You need to​ be able to​ cover the​ costs that your insurance coverage does not and you​ need to​ be able to​ survive for those days you​ are recovering and not working .​
What happens when you​ get into a​ car accident even though it's not your fault? you​ should have money on​ reserve so that you​ are not digging yourself a​ hole you​ may not be able to​ get out of .​
Using credit cards that you​ cannot afford to​ pay off in​ full at​ the​ end of​ the​ month is​ only delaying the​ problems.
One way to​ save is​ to​ downsize .​
If you​ are struggling with your mortgage move into a​ smaller home or​ an​ apartment .​
You could try renting out a​ room .​
Sell what you​ don't use,​ unless it's a​ family heirloom .​
I​ know you​ probably have a​ desk,​ table,​ or​ even computer around the​ house that doesn't get used at​ all .​
You might have baby clothes that don't fit anymore .​
You can use websites like or​ or​ you​ can go the​ more traditional route and have a​ yard/garage sale .​
It will be successful and you​ will have extra cash in​ your pocket .​
Along the​ lines of​ selling,​ if​ you​ have two cars,​ get rid of​ the​ one you​ use the​ least .​
When you​ do you​ will have what seems like a​ fortune because you​ don't have to​ spend your hard earned money on​ the​ car payments,​ insurance,​ registration,​ and gas.

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