It seems everyone has an opinion these days about how we got in to the financial mess and how we’re going to get out. In fact, as I was reading through some articles in preparation for today’s post I had to laugh. The cover of the economist shows a fish luring the other fish to certain death. The cover says “The World Economy and the Peril of Optimism.” [I have tried to link to it here]

I’m going to have to read that story to get a fuller grasp of what they’re saying inside but, on the surface, I’d have to say that optimism is necessary to get out of tough times and live in balance.

The Balanced Life is about Realistic Optimism or, to use what has become a cliche, hope. I don’t mean Obama’s “Yes we Can” political slogan. I’m more in line with the Biblical hope “Confident Expectation of Good.” Sometimes it’s not a matter of what we can do “Yes, I can” but rather it is the understanding that all of life works in cycles. Unfortunately, that means that there will be times of market correction.

For the individual reading this blog, what does it mean? It means using some of the things I’ve taught. Money saving ideas, ways to trim your food budget, fun nights at home are all proactive manifestations of hope.

I can tell you for a fact that you feel way better about your prospects when you have a good day at work vs. getting a collections call. So, while optimism and hope alone will not produce change they can be the fuel of enginuity that takes your idea forward.

So, with all this theoretical, let’s bring it to a practical place.  What is your actual financial goal. I want you to think about this beyond simply “getting by”. Where is it you’d like to be in 3 years? Is what you’re doing conducive with that? If you want to be debt free then your first task isn’t making more money-your first task is spending less. While on the surface that seems to be worse when you recognize your long term goal…it is exciting. Just like a spoiled child who receives everything it asks for, we get no joy if we get everything we want the moment we want it. There is joy that comes with hard work and building toward a goal-then accomplishing it.

Write out your goal. Now start to do it.

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Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her.     She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.

It has been weeks since I put out an extreme debt elimination tip. Here is the tip for this week. Look throught your debts OR instalment payments [that have a payoff balance, like a gym membership]. Find one or two that are closest to being paid off. Determine how quickly you can get it paid off if you cut back on utilities, eating out, and splurges. Then see how much “hidden money” you could find by using some of the saving tips we talked about on Monday.

Use these two things to attack the debt.

Now, usually people tell you to go after the one with the highest interest rate or something like that BUT what I’ve learned is ANY reduction in cost can inspire you to keep going. So if you owe $200 on your gym membership and you’re able to skip eating out for a month, round up all purchases and give up a couple of EXTRAS in order to pay that thing off in a month who CARES if it was only $30-$40/month. That is money that you aren’t spending each month that can NOW immediately go towards paying down one of those bigger bills.

So find something with a small balance, maybe only a couple hundred dollars, and create a plan to have it GONE in the next 4-6 weeks. Use the extra you were paying on the instalment to pay the next biggest one [maybe a few hundred].  Then reward youself with a nice dinner out when both are gone. Remember, the balanced life isn’t all about sacrifice-it is also about rewards.

Maybe even paying your car insurance in full. My car insurance company charges a $3.50/month finance fee if I want to pay instalments. That is $35/year I’d save if I was simply able to pay it twice a year when the bill comes!

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Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her.     She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.

Balance, Not Deprivation is a section designed for any person. It is about recognizing the danger of being TOO much of a saver. Wow, did I just say that? Yes. As a former tightwad I recognize that aggressive saving isn’t about fiscal responsibility, it’s about fear. This section is about how to enjoy small indulgences for a reasonable price.

It is easy to get in a crisis mentality when creditor are after you. It can also get scary when you see people at your company losing your job…will you be next?

Many people want to run their finances based on emotion. When I feel happy I’ll spend. I’ll buy gifts, get a $4 coffee and an new haircut. Also, some people want to spend when they feel depressed. They think a new outfit will make them feel better when everything is crashing in around them.

Neither hoarding, nor spending is the answer to emotions. The best possible thing is to look at balance. You need to exercise control over your spending during both the peaks and valleys. That means having a budget that you establish when you have a LEVEL head. Then you stick to that budget.

You learn to tell yourself no.

I think that is one of our biggest problems. We want to find a reason to say YES to things we really shouldn’t say yes to. Then we get in panic mode.

If you see your department downsizing then scale back on some of your extras and put the money in savings. Stop using credit cards and look for alternate sources of income. But DON’T stop spending all together because you cannot sustain it forever.

Think of money like eating. You can’t starve yourself, or overeat, forever or you will pay for it in your health. Likewise you can’t save everything [or spend more than you have] or it will affect your financial health. If you realize you’ve gained a few pounds then resist dessert, don’t fast for a week. Do the same with spending. Scale back on what you spend-but don’t stop all together because you’re simply setting yourself up for failure.

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Bio

Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her. She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.

EXTREME Debt Elimination tips are challenges posted for people who are trying to immediately cut their expenses. Some are more challenging than others. Some of them are obvious [debt elimination takes persistence, it isn't necessarily hard]. All of them will cause an immediate reduction in spending for people who apply them.

Tuesday Extreme Debt Elimination tip:

For the next 10 work days implement the following and apply ALL savings to your debt:

-Do not buy any beverages on the run.  Brew coffee at home. Buy pop/soda/cola from the grocery and take it to work in a cooler.

-Pack your lunch using sandwiches or leftovers.

-Drink water instead.

Receive notification when new tips are posted by subscribing here.

Tiffany Colter is a passionate freelance writer whose credits include Today’s Christian, Charisma Magazine, Toledo Business Journal, and the Afictionado E-zine. Tenacious in her approach not only to create a great story, but also to mentor other writers, Tiffany can always be found in the presence of a book or laptop. A former world traveler who is fluent in three languages, she strives to reach those who are hurting around her.     She enjoys helping others build a strong business and writes a daily marketing blog for writers called the Writing Career Coach [www.writingcareercoach.com] and a common-sense money management site, TheBalancedLife.com. Tiffany lives outside Toledo, OH with her husband, a recent cancer survivor, and their four girls.