In order to gain a foothold on your financially busy and complicated life, you’ll need to be proactive. Cathi Brese Doebler author of “Ditch the Joneses, Discover Your Family” and founder of Ditchthe.com has some good tips on how to find financial peace in our lives. “One of the things to focus on is on setting a budget.” she says Doebler.
Doebler gives three steps for budgeting:
1. Brainstorm all of the items you spend money on in a year, and then make a list of each of the items.
2. Go through the list and check off all of the items that are truly necessities. All of the remaining items are not necessities, but are called “wants”.
3. Decide which of the “wants” you can stop buying. Determining which items you “want” versus which items are necessities will help you to better manage your spending.
Joel Ohman, Certified Financial Planner and founder of CarInsuranceComparison.com suggests savers write down an action plan for getting on track financially. “This can make all of the difference in helping one to feel more relaxed and sleep better at night because the focus shifts from a financial problem to a financial plan,” he says.
He adds that carrying high interest consumer debt (especially when used to purchase non -appreciating and non- income producing assets) is almost never a good idea. “These are the biggest sources of worry, frustration, and stress in the lives of most consumers. Working to cut out this type of debt and staying away from it will go a long way to bringing peace and stability to your finances and your disposition.”