Negative cashflow is the last thing anyone wants, especially in the current economic climate, however for many it is a real and pressing issue that needs to be addressed.
The problem is that often those who find themselves in this position have for years been conditioning themselves to ignore their financial problems, pretending that they don't exist, and even spend more money to make themselves feel better rather than dwell on or better deal with their immediate problem.
The good news is that its not all your fault.
Many of us have been conditioned to develop poor money management skills, whether that's from school or from our parents.
Its just, it was something that was never addressed, or broken down to be best understood.
However, if you continue as you are it will no longer be anyone's fault, but your own.
Like many things in life, the success formula is quite simple, rarely easy but simple yes.
Take losing weight, millions of exercise devices, diets books, videos and DVDs, gym memberships and dieting pills have been sold all over the world but what it boils down to is - "move more, and eat less.
" In other words, get active and burn more fuel than you put in.
Financial success is the exact same.
So here's the plan if you're in financial "hot water.
" 1.
Start to earn more - this could mean working overtime, getting a new or better job, getting some extra work in the evenings or starting a low cost part time business.
The internet is perfect for anyone considering setting up a low cost part time business.
Low set ups costs and overheads, zero employees, rent or finance payments and a shop that's open 24/7.
Decide how much you'd like to be earning, and then get it going.
Once you get started, you could be surprised by how much you enjoy it.
2.
Spend less - we don't advocate living poor and dying rich, so to get the right balance you need to learn how to manage your money.
Whatever you pay attention to improves.
Figure how out how much you're spending right now, write it down.
All of it.
How much of this is unnecessary? Decide to cut the waste and reduce your expenses.
For example, you might decide to cancel the gym membership that you weren't really using, and begin road running, or doing bodyweight exercises instead.
You might start eating out less often, we're not suggesting never, but get smart.
Once your income starts to exceed your outgoings and it could be much sooner than you think, this is where money management starts to get fun.
We recommend that you set aside an equal portion of your disposable monthly income, say 5-10% towards Debt Elimination (over and above your regular monthly payment), Wealth Accumulation, Charity and a Play Account.
As you become more successful and enjoy managing your money, the amounts that you contribute to each of these respective accounts will grow and you will derive greater and greater benefit and satisfaction from your increased financial ability.
This is only the beginning!