On Spending Wisely...

We've been hearing a lot about how many people are in serious debt and others struggle from month to month to pay their bills. So it might seem that the problem is purely about having a certain amount of money. However, an answer can be found in having a positive attitude towards finances and a satisfaction with what we already have.

I know that financial establishments, such as banks, savings and loans, and credit card companies are being monitored right now, and I am certainly pleased about the government's regulatory role in this critical situation. But I have to say that as consumers we have a responsibility for our own money management.

The first step is to reduce any debt. Being beholden to a lender can weigh you down with monthly payments that can drag out for years. The hard truth is that it can take a very long time to pay it off. So, it is essential to develop a plan to free yourself of such a weight.

One way to do this is to pare down the number of credit cards you maintain. If you have several cards, the main objective is to get them paid off as quickly as possible, preferably paying off the higher interest cards first. In any case, getting at least one card paid off and then closing that account will give you a satisfying feeling and encourage you to continue with your plan of getting your finances in order.

You'll also want to curb impulse spending. Before making any new purchase, give it some thought. How important is this purchase to you? Can you get it for a better price? Hopefully by thinking before you buy, you will end up buying far less, thereby saving more. Interestingly, you probably won't miss most of the items that you momentarily craved, and if you do, then you can set aside some money from every paycheck towards buying it.

Another important step is to create a budget to help you choose where your money goes and help you to keep track of your progress. Be sure to put a small amount of money aside for your enjoyment and to reward yourself for your efforts. Of course, the big reward will be when you realize how much headway you have made towards being in control of your money -- and your life.