What has been your personal experience with credit cards and revolving lines of credits?
Quite often, we prioritize easy money over hard money and by that I am referring to our ability to increase debt, use credit cards and utilize revolving lines of credits for expenditures which we can otherwise meet if we prioritized how can I make some extra money or how to use what I have where I am at to attract the kind of income we need to sustain our needs not our appetite.
Like you, I love the month of December because hopefully in addition to spending crazy hours in the mall shopping, plenty hours in the kitchen making dishes, developing recipes for your stomach infrastructure for your guests, buying gifts for yourself, filling up your stocking stuffers , buying gifts for your co-workers, your aunts and uncles, your kids teachers and even planning your wake up at 4am strategy for the boxing day sales ( btw these are all good and healthy things to pursue in moderation) ; I’d hope you have taken an annual financial review of your 2014 financial habits, and earnings relative to your expenditures?
If you are unable to reconcile your earnings and your expenditures or you have been perpetually reconciling it via the availability of credit in credit cards, and lines of credits then the awful truth sweetheart is – Any fool can balance a budget with credit cards and lines of credits, it takes more commitment to balance it with a conscious and consistent effort at living within your means or creatively exploring legitimate avenues to use what you have to earn enough for your needs not your wants.
3 suggested questions to consider when you are doing your annual financial review are :
– How much have I invested in increasing my income ( via self development ( courses, degrees, certifications, mentorship, applying for jobs, volunteering or serving others)
– Has my investment translated into a positive or negative return on the investment over a period of time ( remember success doesn’t happen in 1 day but in increments over time)
– If I desire not to place myself in this same situation next year ( 2015 annual financial review ) , what is within my control that I can do differently?
– What additional expenditures, financial commitments have I said Yes to , or have others imposed on me that may have contributed to the unbalanced budget.
I know bad habits are hard to break especially if for decades or longer you have survived or conveyed a perception of being a financial guru of unbalanced budgets by using available credit on credit cards and revolving lines of credits. I know complacency and the familiar is the safe harbour we are all tuned to have our ships at, I know your wish is to win the lottery.
But remember Good financial habit is poverty, and bad financial habit makes me rich – said nobody ever!
With head and heart