Filipinos look into other means of gaining money as well. The lines for lotto tickets have never been longer than now. Some go to noontime shows and have their children gyrate to music for quick cash. Others turn to pyramid marketing schemes. Sometimes we think if we had more money, our problems will magically vanish.
More money is not always the answer,” cautions Julia Cameron and Mark Bryan, co-authors of Money Drunk Money Sober. “Better use of it is.” Here is their expert advice to do exactly that.
Nine Money-Wise Tools for 2009
1. Count your money. Beginning today, count all money spent and earned and record these in a notebook. Try to be as accurate as you can. The tool may seem too simple, but it is powerful. This helps give you a non-judgmental picture of how you spend, or mis-spend, your money. You will learn how much you earn each week and where the money goes.
2. Stop incurring debt. One day at a time, do not incur any new debt or use credit. This is the only way to stop the downward spiral of your finances. During this time, avoid big new expenses. Also, stop hiding! Call your creditors and inform them of your intent to pay at a future time.
3. Start a journal. Many times we spend to make up for insecurities we harbor inside. When we feel low, we feel the need to overspend to purchase self-worth. It is during these times that a journal may be crucial for financial support and recovery. Instead of blowing your cash at the casino or purchasing your 38th pink hat, take pen in hand and explore your thoughts and feelings on paper. Trust that small voice that tells you are worth more just as you are.
4. Draw a bottom line. Your bottom line is a list of behaviors that have affected you concerning your money. These can include borrowing from friends, using credit cards to the limit, not balancing your checkbook, not paying your taxes, spending more than you earn, etc. Simply put, these are behaviors that have caused you shame. Write them in your journal and never cross that line again.
5. Make a money map. After each month of counting your money, you are ready to make your money map. The money map is a financial overview created by tabulating your daily expenditures into weekly totals and then adding those up into monthly totals. Now you have a visual of where your money goes, where you are misspending it, and where you’d actually enjoy spending it. Can you cut down on cab costs and take mass transit or walk instead? Or you might be surprised to learn that you eat out a lot when you can save more and be better nourished by preparing your own sumptuous meals at home or bringing a packed lunch to work.
6. Reach out for support. If you’re having problems with debt, you may want to look up Debtors Anonymous in your area or on the Internet. Being among people who have tread the path towards financial sobriety can provide you with the necessary encouragement you need to keep on your own path.
7. Find a money buddy. Tell an intimate friend exactly what is going on with your money situation. Put an end to your secrets and shame about your misspending. Your money buddy can help you review your money map and brainstorm solutions to tricky situations. Be sure to choose someone with whom you can be totally honest.
8. Set aside. Ten percent of whatever you make should be saved for the future. This becomes your most important account. This practice enables you to earn more each month than you spend. Also, set aside some amount towards debt repayment. Contact your money buddy and your creditors to come up with a workable plan toward freedom from debt.
9. Make a prosperity plan. To do this, you need three things: a job (or steady source of legal income), a money map, and a money buddy. Examine your expenditures using your money map as a spring board and see where you might be able to use your money more effectively. Write down these choices on your prosperity plan. So you have your money map on the left, the actual record, and on your right, you have your prosperity plan, which is your goal. Show the goal to your money buddy for his opinion. When you see your money map change and merge with your prosperity plan, you are on your way to real solvency in handling your money!
Start counting, planning and saving!
The sooner you put these tools into consistent practice, the better prepared you are to face the year ahead! They are extremely do-able, and it’s not high-finance! And nope, you don’t need to wait till the beginning of the week. Today is good enough. This may be the day you walk out of fiscal frustration to financial freedom!
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