Balanced Life Tip: Confronting a Financial Crunch
 |
| |
 |
| Take the 2008 Work-Life Balance Survey Just 15 minutes of your time. You can receive a copy of the survey results and a free copy of our e-book, "102 Tips for Better Work-Life Balance" when it is published in the fall of 2008! |
The economy is in a crunch. Rising fuel costs and natural disasters are causing
price increases in critical consumer goods, like food, which rely on shipping. Credit
card companies are reducing credit limits, withholding new offers of credit and raising
interest rates.
The fall in the mortgage and real estate markets have eroded a much of the equity
held by property owners leaving many to face foreclosure and even bankruptcy
because they’ve used equity to pay off other debts and now that equity is gone.
Many Americans find themselves caught unawares by financial crisis. Yet, even
during times of economic downturn, most financial crises are not only predictable but
preventable.
The biggest reason we fail to see a financial crisis coming is mostly because we are
too afraid to look in the first place. Experts have been predicting all of the current
price increases in critical consumer goods, like food, which rely on shipping. Credit
card companies are reducing credit limits, withholding new offers of credit and raising
interest rates.
The fall in the mortgage and real estate markets have eroded a much of the equity
held by property owners leaving many to face foreclosure and even bankruptcy
because they’ve used equity to pay off other debts and now that equity is gone.
Many Americans find themselves caught unawares by financial crisis. Yet, even
during times of economic downturn, most financial crises are not only predictable but
preventable.
The biggest reason we fail to see a financial crisis coming is mostly because we are
too afraid to look in the first place. Experts have been predicting all of the current
financial difficulties for years, even while we were in the housing market boom. We didn’t want to hear it. We
would just rather not think about it until we are forced to do so. It’s like walking across a familiar street with out
paying attention to traffic. You might get away with it for a while but sooner or later…
While working as Director of Education at Consumer Credit Counseling Service in Los Angeles, I dealt with
literally thousands of people who steadfastly refused to look at their financial condition until they were forced to
do so. Now the economy is forcing all of us to take a long hard look.
It is not too late! The key to preventing or minimizing real damage during financial stress is to understand your
situation and take prompt action to control it.
Know your income. Take a good look at your net income. How much cold hard cash do you have coming every
month? Consider all reliable sources. This is what you have to work with.
Consider your resources. You should have a financial cushion, three to six months living expensive in an
account that is easily converted to cash. Savings accounts, mature savings bonds, money market accounts,
certificates of deposit that are nearing maturity are all good choices. The numbers in (Continue Reading)
would just rather not think about it until we are forced to do so. It’s like walking across a familiar street with out
paying attention to traffic. You might get away with it for a while but sooner or later…
While working as Director of Education at Consumer Credit Counseling Service in Los Angeles, I dealt with
literally thousands of people who steadfastly refused to look at their financial condition until they were forced to
do so. Now the economy is forcing all of us to take a long hard look.
It is not too late! The key to preventing or minimizing real damage during financial stress is to understand your
situation and take prompt action to control it.
Know your income. Take a good look at your net income. How much cold hard cash do you have coming every
month? Consider all reliable sources. This is what you have to work with.
Consider your resources. You should have a financial cushion, three to six months living expensive in an
account that is easily converted to cash. Savings accounts, mature savings bonds, money market accounts,
certificates of deposit that are nearing maturity are all good choices. The numbers in (Continue Reading)