Years ago, I caught an episode of Dr. Phil. On it, he was talking to an overweight woman who was talking about yet another diet that proved to be unsuccessful. She listed off all the healthy foods that she was eating and yet she fell off the diet because she gorged on some ice cream after a bad day at work or a fight with her husband or something emotionally draining. Dr. Phil was able to sum up the whole of this woman’s dieting experience with these two sentences: “It’s not about what you’re eating. It’s about what’s eating you.”

I was reminded of these words last night when I was up way too late watching yet another television program featuring yet another “guru of the moment.” Suze Orman was taking a call from a woman who flirted with declaring bankruptcy and she needed advice regarding the perpetual lack of money in her life. Suze Orman’s immediate response to this was “A lack of money doesn’t create problems. Problems create a lack of money.” And in this caller’s case, she was right.

While this statement is not always true, nor is it entirely accurate for every situation, I do think there is something there. How many of you find yourself in a pinch because, due to some crisis (a surprise layoff, hospitalization, ignoring your bills entirely) you are now facing a financial setback? Below are some general areas to help you create a day where you get to deal with life, instead of worrying about money.

Get some order to your life.

Don’t stuff the bills into one pile that you then shove into a drawer when neighbors come over for dinner, thinking you’ll remember to pull those out at the end of the night. Because you won’t. Out of sight, out of mind. A billing cycle will roll around and you’ll notice that your payment now includes a past due amount. Why? Because the original bill is at the bottom of the pile that’s sitting the bottom of your desk drawer. Develop a filing system. Group your bills together according to they’re due date and mark your calendar. If you find that too many bills are due at the same time, call a couple companies you owe and ask if they can move the payment due date either earlier or later in the month.

Develop a system of going through your mail.

Professional organizers suggest that you go through your mail over a recycling bin. You immediately toss out promotional flyers and circulars that are addressed to “occupant” and you shred the remaining credit card offers (and anything else with your name and address printed on it). The remaining one or two envelopes are probably bills. You deal with these immediately. Either pay them right away or devote a couple of days a month–days that fall either on or close to payday–to mail off these payments. Online banking works wonders for the disorganized, by the way.

Safeguard against “the” crisis.

It happens. And we all know what “it” is. Put as many safeguards into your life to end this oppressive cycle of debt. Work on getting that emergency fund savings account filled. Work on getting health and disability insurance. Look into life, home/renter’s insurance, too. And, when the crisis does happen, don’t pull out the plastic to fix it temporarily because you will end up paying for it in the long run. If you do find yourself in a moment of prolonged crisis–like sudden unemployment–lower your standard of living immediately. No more eating out. No more pizzas delivered. No more shopping as entertainment. And don’t charge your life away, either.

As you get your financial life in order, you’ll find that the lack of money wasn’t actually the problem. Don’t get me wrong. I know, we always want to make more, more, more. But recognizing how much you do make and planning and spending accordingly to your income level will truly clear your path to a heightened level of financial freedom.

Get your spending under control Article Source

Step 1 - Seeing How Your Past Holds The Key To Your Financial Future

“Messages about money are passed down from generation to generation, worn and chipped like family dishes.” Suze Orman

It is important to spend time understanding your family’s stories about money - and the ones you created yourself, as you were growing up. Financial freedom begins with freeing ourselves from the burden of the past.

Step 2 - Facing Your Fears And Creating New Truths

“The trouble with fears is that when we keep them inside and refuse to deal with them, they grow, like weeds left alone in a garden. Take the fear of not having enough to cover the bills this month and let it wander around by itself, unchecked. Where will it go? It will become the fear of not having enough in general.” Suze Orman

New financial realities can only grow once you have faced your fears and replaced them with new, more empowering beliefs.

Step 3 - Being Honest With Yourself

“Most of us believe, or deceive ourselves into believing, that we need about $1,000 to $1,500 a month less than we actually do need to go on living the exact same way we live right now.” Suze Orman

It is very important to go back through your records and establish exactly how much you have really spent. Guessing won’t get you free!

Step 4 - Being Responsible To Those You Love

“It’s not OK when you get sick, or when you die, to leave financial chaos behind you for everyone else to clean up.” Suze Orman

Make sure you have a will, including a testamentary trust, adequate life insurance, income protection insurance, and health insurance. If you are not sure what any of these are, or how to get them, consult a financial planner.

Step 5 - Being Respectful Of Yourself And Your Money

“If you’re respectful of your money, and do what needs to be done with it, you will become like a magnet, attracting more and more money to yourself.” Suze Orman

The most powerful and respectful way to make money is to invest wisely. Plan for your future, take advantage of the superannuation plans that are available to you, face your debt, and stand guard over your money, ensuring that every penny you spend is a penny that must be spent.

Step 6 - Trusting Yourself More Than You Trust Others

“When it comes to every financial decision you will make for the rest of your life, you will choose correctly if you go with the answer that reflects your instinctual response.” Suze Orman

Your financial freedom is your responsibility, and it can only be planned and brought about by you. There is no “expert” or “insider” who knows better than you what you should do.

Step 7 - Being Open To Receive All That You Are Meant To Have

“Money is a living entity, and responds to energy, including yours, and to how you feel about yourself.” Suze Orman

Thoughts of poverty are the chains which bind - to release them, give money to a charity you feel stongly about.

Step 8 - Understanding The Ebb And Flow Of The Money Cycle

“How often have you heard, for example, of someone who is devastated by being fired, only to land a much better job and end up happier?”

To be at peace with the ebb and flow of money, remember two things. Always take the long view of your financial future, and believe that everything that happens is positive, if you are willing to let it be.

Step 9 - Recognising True Wealth

“True financial freedom lies in defining ourselves by who and what we are, not by what we do or do not have.”

You cannot put a price tag on your life. No matter what financial ups and downs happen in your life, you will be truly wealthy when you understand that none of that stuff matters. Not really.

“Money itself cannot make you financially free. Only you can make yourself financially free, and you can do it - and so much more. You have that power.”
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