How To Remove Financial Worries

The economic slowdown has demonstrated just how important it is to be prepared financially.

In good times we convince ourselves that we can extend our borrowings and spending with little thought as to the possibility, some may say inevitability, of either a change in personal circumstances, or the economy in general. However, there are steps one can take to minimise the financial fallout when times change and things become tougher.

When taking on fiancial committments its important to think about the “worst case scenario”. What would happen if you were made redundant? Could you keep your head above water financailly? Too often we try and keep up appearances and to heck with the expense!

We often take debt on for the instant gratification of how we think we will feel when ever we possess such an article. However, the excitement is often in the anticipation of the purchase and after we have bought whatever it was we wanted we almost instantly take it for granted, and the feelings of excitement are replaced by the worry of keeping up the payments! Would it not have been better to not have bought it in the first place and retain the security of the cash?

Banks have taken a very tough line on lending these days, so there’s no guarantee that they will be of much help should you find yourself in a financial crisis such as losing your job. One measure you can instigate to act as security against the consequences of this happening is to have the equivalent of 6 months salary saved, as this is a figure that it thought to be sufficient to see you through, and even if it’s not, the bank will be more prepared to lend money if you have some saved should you need it.

Saving money is not something that many people like to do, as the temptation to spend it on the latest gadget or going out clubbing is strong, and at least we have had something to “show” for it, rather than just stashing it away. Even if we do save, when we see a sizeable sum in our savings account there is the temptation not just to spend it all, but also to overspend a little here and there, and by doing this, erode the amount we hold in the bank.

What is needed is a change in our internal messaging service. we need to change our attitudes towards saving, away from thoughts that it’s restrictive towards thoughts that its all about liberty – liberty to survive when things go wrong. Try and associate saving with something that makes you feel secure, in the writer’s case it’s his grandparents house at Christmas with a roaring log fire and deep, comfy sofas.

The more you can acheive this type of association, the more your perception of saving will change.

Keeping track your money is so vital. But for some, things can become too much and they have to look at the unpleasant step of bankruptcy. If you would like further free information on declaring yourself bankrupt, please visit www.declaringyourselfbankrupt.org Also published at How To Remove Financial Worries.