Personal Finance Failures do not need to Dictate your Future

If you have experienced past financial failures, they do not need to affect your future.  The past is in the past and you have the future to look forward to.

It is easy to get in over your head with spending money.  With the availability of credit cards and other credit it can be easy to outspend your income.  If you find yourself in this situation it is important to sit down and develop a monthly budget that fits within the income you earn.  A part of this budget should be money allocated to pay down your debt as quickly as you can.  The sooner it can be paid off, the less you end up paying in interest and finance charges.

Keep track of everything you spend money on for at least a week or up to a month.  At the end of each week, look at where you are spending your money.  Are there categories that can be cut down on or cut out.  This also assists you when allocating money to different categories in your budget.

When you find yourself continually spending more than you are bringing in you can either look at your spending and see what expenses can be cut back on or  cut out completely, or look for ways to increase your income.

If you have had your home foreclosed on or filed for bankruptcy you can work your way back to financial success.  It will be hard work and may take awhile but by being able to pay your bills on time it will eventually work itself out. 

Some individuals and families find themselves in a house they can’t afford.  When looking at homes, you need to determine how much you can afford.  Besides paying the principal on your mortgage, y our monthly payment also may include interest charges, home-owners’ insurance and real estate taxes.  If you pay a certain amount in rent each month, you may not be able to afford that amount in mortgage payments because you will have additional costs such as utilities, upkeep, maintenance & repairs and lawn care that you may not have had previously.

If you got into financial trouble from a divorce or other relationship that did not work out, you will need to deal with emotional factors as well as financial.  It is important to put the past behind you and work towards what waits for you in the future. 

It may be hard work and take some time, but past financial failures to not need to dictate your future.