When something, or more like someone, exits your life, you might feel like you’re on a downward trajectory to, I don’t know, the end.
I sure did. I thought it was game over. No future. No happiness. No life ahead.
I had celebrated graduations. I had celebrated my wedding. What more?
I had gloomily thought that the only next celebration I would look forward to is one I wouldn’t be here for – death.
Yes, these thoughts might have come from my darkest places in my most trying hour, but it was what filled my mind.
I was wrong.
Divorce isn’t an end.
It’s a new beginning in every aspect of your life, including, and especially, in your financial life.
If you struggled during marriage, if your divorce left you in serious debt or you even had to file bankruptcy after your divorce, you can start over.
My financial life today is 10, maybe 100, times better than it was when I was married.
I not only divorced the woman I was married to but also from my hungry and all-consuming third partner in our relationship – our home, which ate up our finances like a hungry Cookie Monster.
I divorced irresponsibility, unconscious spending and debt.
Here are 7 ways to get your finances back on track.
1) Simplify your life.
We live in extravagance. Like it or not, know it or not, we continue to spend what we have and even more so with our personal banks known as our credit cards. There are many expenses in your life that you can cut down. You don’t even know how elaborate, extravagant and complicated your life is. There are services you don’t need, monthly payments for things you don’t use and regular spending on items that don’t enhance your life.
Look around your life and look at your spending habits. Where is your money going? What can you reduce, simplify or get rid of?
2) Downsize
Since my divorce, I’ve chosen to live with roommates. Why? Because I enjoy the company and I enjoy the cost savings. I’ve also enjoyed living in smaller residences in less expensive parts of town to save money.
You might think you can’t possibly live with other people or move, but you know what? You can. It’s a little bit of personal sacrifice for a whole lot of financial freedom.
If you can’t live with someone else no matter what, then considering moving to a small place or less expensive part of town. You can cut down your living costs by 20-40% or more.
3) Cut out frivolous spending.
You’re ready to spend every time you walk into a store or every time you pass a Starbucks.
Your money/bank cards/credit cards feel like a natural part of your body, except they shouldn’t.
Spending without thinking is the easiest way to financial ruin. Do one of two things: either stop altogether so you’re not spending any money or give yourself a limited amount of funds each month to spend. If you’re beyond the limit, don’t buy it.
Spending money on things that don’t fulfill is a double negative. One, you’ll get a transitory moment of joy that you’ll forget about after you drink half the cappuccino, and two, you’ll be racking up credit card charges that will continue to keep you in debt.
If you had not planned on purchasing it when you went out, don’t.
4) Get clear on what’s important
I should have started with this step.
Why are you saving money in the first place? Why do you need to get your debt under control? What will having more money and financial freedom mean to you?
Think about this and get clear on this part.
Having no debt allowed me to start living the life I wanted. It allowed me to write and publish more books. It allowed me to take coaching courses and start coaching people. It allowed me to leave full-time employment for months or years at a time. It allowed me to travel. It allowed me to save money for retirement.
Why do you want to be debt-free? What will financial freedom mean to you? Answer these questions first! Know why you’re going to change your behavior and find some motivation to stay the course.
5) Start an automatic savings plan
The first thing you do on pay day is figure out which store to visit or what to purchase first.
Well, that’s one sure way to live the lifestyles of the rich and famous poor and infamous.
Even if you’re going to frivolously spend, at least set up an automatic savings account first so some of your funds go into a retirement account and some goes toward a savings account. After you’ve saved your money, then do as you please with the remaining funds.
This was one of the first steps I took after my divorce and I’m thankful for Ramit Sethi’s video on this topic.
6) Pay off debt – more than the minimum
I used to avoid paying off debt, thinking I was winning. The less I paid and the later I could pay it, the more I would have now.
Credit cards and banks had a laugh on my behalf because they were the ones winning.
The more I delayed on payments and the less I paid, the more interest they made.
One of my biggest debts is my student loans from law school. I had paid the minimum on this for the longest time, thinking this was going to be a lifetime payment plan. Forget that, I realized. Paying it off is doable; it just takes paying more than the minimum each month, so I’ve tried paying at least $100 more each month toward paying off these loans once and for all.
(I sure wish I had found this blog earlier by The Power of Thrift. She’s a 30-something year old lawyer who paid off law school student debt and retired. What!?!)
7) Be intentional with money
I’m asking you to do something here that I didn’t do for a long time, to be more conscious with your money. To know ahead of time what you’re going to do with it.
This might require some planning. It might even require examining and thinking about your finances each month. A little planning or a basic budget can go a long way.
Figure out what you are required to pay, budget your expenses, and see how much money you have left at months end. Buy less stuff. Don’t spend all your money! That’s the surefire way to debt and how corporate America wants you to spend your money –without thinking about it!
When you’re in debt and reeling from the financial pain of your divorce is the best time to start over. Set your finances right with these simple tips and you’ll feel happier, freer and more peaceful than even before.
Start the next chapter of your life financially-savvy and debt-free.
I remember one Christmas when I was growing up and wanted a big box of Legos.
I’m not talking about one of those tiny sets that would build a castle; I’m talking about the whole enchilada—an entire kingdom. This was a giant Lego box that I, along with my brothers, deeply desired, but all December I remained uncertain as to whether or not I would be gifted this luxury.
I remember that, during the weeks leading up to Christmas, I was filled with anxiety. I remember having discussions with my parents about the box’s cost. My Indian parents reminded me that the Lego set was a big sacrifice and financial commitment on their part.
Christmas day came and, ultimately, my brothers and I received the Lego set we wanted—but it was after much anxiety and uncertainty.
A couple of other incidents in my childhood had similar lasting impacts. One was the constant talk in my family about money and whether or not various things were affordable. I’m sure this is a conversation that occurs in every household, but the predominant thought in my family regarding every purchase was, “Can we afford it?”
I guess the incidents that stood out the most, and that were the most embarrassing, for me involved school projects and field trips that families had to pay for. I recall that, regardless of the field trip or event, my parents would inquire whether a fee reduction or scholarship of some sort was available.
Now, let me say three things here.
One, many of these behaviors could have been cultural—Indian people hate to pay full price for anything. It’s why they have a love/hate relationship with America. Their earning capacities are high, and they constitute one of the wealthiest communities out there, but they can’t fathom paying full price for anything.
In the motherland, we bargain, negotiate, plead, and coerce shopkeepers, dentists, and even auto drivers to give us the best possible prices.
Two, as immigrants to the United States and operators of a new business, my parents were doing something inherently risky. Having invested their lives’ assets into a small family business was nerve-wracking. Being in a new country like the United States, running a business, and managing a family’s finances was hard work.
What I’m saying is that my parents were certainly in a financial crunch and that the money issues our family faced were likely real.
Since graduating from law school, I’ve run my own businesses in the United States and know the highly unpredictable nature of business. Until the next client comes along, you never know whether you can meet your monthly expenses or hit your bottom line.
Three, I want to say that although I don’t blame my parents for the rocky financial situation I faced during childhood, I do think it affected me. When you’re constantly being told that your family doesn’t have enough, or that it’s unclear whether your family can meet simple expenses, you end up with fearful attitudes about money and constantly feel as though you don’t have enough.
The money-related anxiety and fear that our parents instill in us can damage us financially for life.
When you want to live a richer life, you forget about the underlying subconscious script playing at the back of your mind. You don’t realize that your entire outlook and ability to earn is being held back by your beliefs and blocks about money.
Simply put: You can’t invite more money into your life until you change your beliefs and subconscious thoughts about money.
You can read all the blogs, books, and magazine articles in the world, but your money situation is not going to change until you address the underlying beliefs about it.
If you’ve grown up in a household that was tight about finances (and I’ll just say any Indian or Asian household), you likely have certain beliefs about money that are not based on reality but, instead, are based on traditions or mindsets cultivated over generations.
Some common false beliefs about money include:
Money doesn’t grow on trees.
You have to work very hard for money.
You can either be happy or rich.
Earning money is a struggle.
Money is scarce and difficult to accumulate.
More money, more problems.
You’re not a good person if you’re rich.
The more money you have, the more snobbish you are.
You need to save up your money for a long time to be wealthy.
You get the idea.
You have, I have, we all have been inundated with these limiting beliefs about money. Many of us have taken these beliefs to heart and have allowed them to shape our views of the world.
So when you’re struggling with money issues or having difficulty making ends meet, you must attack the root cause of your problems—your money mindset.
You have very deep, subconscious, and psychological fears about money.
Would it be fair to call this an emotional money trauma?
When you grow up without enough food to eat, you’re likely to feel that you might run out of food.
It’s the same with love. When you don’t have enough love as a child, you’ll tend to feel rejected and abandoned throughout your life.
Ditto with money. When you struggle with money during your formative years, you’ll have some deep emotional wounds and, consequently, believe you’ll never have enough of it.
Forget about making money for now. There are plenty of programs, methods, and people out there who will tell you how to earn more money.
It’s not your bank account you should be concerned with, but your money mindset.
Let’s get to the root issues surrounding money.
Here are 10 strategies that can help you shift your thoughts about money and help you live a richer life.
1. Visualize your abundance.
Instead of thinking about what you don’t have and what you’re lacking, think about what you want in your life. What does abundance feel like to you?
What would it feel like to not worry about money? Where would you live? What would you do with your time? What would you buy?
Have you ever experienced a period of abundance in your life? How would you walk? How would you breathe? Imagine and stay in a place of abundance instead of a place of lack.
Use positive visualizations to imagine having enough. Imagine whatever it is your heart desires. What would make you feel abundant?
Get creative and picture an abundant life in your mind. Some people create vision boards that portray a visually compelling picture of an abundant life. But you can just as effectively visualize a picture of a rich life.
2. Embrace the positive vibrations.
How do you embrace the vibrations of joy and gratitude when you feel neither? Well, here’s the thing—you gotta start cultivating these feelings in your life.
You have small moments of joy every day. Capture it, cultivate it, and create more of it. Actively schedule activities that bring you absolute joy. Try to refrain from those activities that make you feel horrible about yourself.
Put yourself in high-vibrational places where you’re emitting positive energy.
If hanging out with your high-achieving sister who works at Goldman Sachs and who has two kids and the perfect house makes you feel like a loser, spend less time with your sister!
If your daily yoga class or workout makes you feel good about yourself and brings joy into your life, make sure those activities are on your calendar.
Fight for your joyous activities every day. Do things that bring you pleasure (unless they require a bottle of Crown Royal or could get you arrested).
3. Immerse yourself in a little luxury.
I hate luxurious things; it probably doesn’t help for me to write that here.
I grew up wanting to do something that would help a lot of people, serve others, and create a more just world. I practiced law to balance the scales of justice for some of the most vulnerable people in society. I worked as a union organizer to give workers a voice and to help them stand up to corporations.
While it’s understandable that I’m not comfortable surrounded by luxury, I’ve tried to reverse that trend by putting myself in luxurious places. I’ve walked through and hung out in the lobbies of the fanciest hotels in the world. I’ve embraced the experience of going to conferences where I was put up in nice hotels. I’ve volunteered to take rides in fancy cars.
I’ve spent days at nice beach resorts and even eaten at a handful of fancy restaurants, all in an effort to help myself get comfortable with luxurious places. In the process, I’ve dealt with my own resistance and uncomfortableness. I’m trying to embrace luxury so I will stop resisting it.
Similarly, I encourage you to take a couple of actions this week. Go to places where you normally wouldn’t go. Have coffee and dessert at a fancy restaurant. Walk through a place like Rodeo Drive in Beverly Hills, Fifth Avenue in New York City, or the Shoppes at Marina Bay Sands in Singapore.
4. Role play (seriously!)
What kind of abundance do you want in your life? Travel? Wealth? Better relationships? The man of your dreams? More excitement? Enjoyment? A more exotic city to live in?
Whatever it is you seek, try playing that role. What do I mean by this?
Take a trip to the city where you want to live. Dress up in the clothes you would wear if you had an abundant life.
Have a meal at a nicer restaurant. Attend plays at artsy theaters.
If you can upgrade your hotel room, your rental car, or the meal you ordered, go for it. Do those things you would do if money was not an object.
Live up your life a little and try to do those things that you would do if you had all the money you wanted.
You don’t have to spend exorbitant amounts of money either; look for free events and opportunities. Rent cars or clothes to help you feel more abundant.
Essentially, set yourself up in situations and play roles that help you feel more abundant.
5. Give affirmations a try.
I’ve not talked much about affirmations here, but they have helped myself and others. My friend, Farnoosh, talks about how affirmations were critical to changing her mindset and helping her become an entrepreneur.
In this post, Farnoosh not only provides examples of affirmations you can use, but also offers a one-minute affirmation video.
If your mind is filled with negativity and thoughts of lack, repeat affirmations regularly to shift your mindset to more positivity and abundance.
Keep a list of your affirmations on your refrigerator, bathroom mirror, or steering wheel so you’ll have a continual reminder of them.
If you would like to create more abundance in your life, you can also try a meditation. This 10-minute meditation by Lilou is one I’ve found effective:
6. Tap your way to abundance.
I don’t quite know why tapping works, but I have found that it creates a state of abundance in my life.
It’s based on ancient teachings and acupuncture points on your body. You tap these various designated points and repeat affirmations of healing and positivity toward your money blocks.
Again, weird as heck, but what you’re doing is tapping into your unconscious mind patterns and breaking through subconsciously to clear your money blocks.
Try to do this when no one’s around because if anyone is watching you, he or she might call the local mental health clinic to wheel you away.
Videos I regularly use include these two by former Harvard lawyer Erika Awakening and certified hypnotherapist Brad Yates.
7. Continually acknowledge abundance.
When good things show up in our lives, we tend to ignore them.
Instead of doing this, take a moment to celebrate the synchronicities that show up in your life. These are coincidences and blessings.
Get serious about showing appreciation for the small things.
Be grateful for your car and for the money you use to buy gas. Be thankful to your boss who lets you go home early. Be grateful to the client who pays off his or her bills, or the patient who brings you a fancy box of Cadbury’s chocolates.
Every night, write a list of 10 to 20 items you’re thankful for. Your family counts, your pets count, your annoying neighbors moving out from the next-door apartment counts, and so does the lunch your best friend treated you to.
8. Dress better
Get in the spirit of feeling more abundant. During college, in my quest to live like the Average Joe, I bought my clothes from thrift stores and second-hand stores. It didn’t bother me if the clothes were torn or had holes in them.
Since that time, I’ve realized that, no, the average person doesn’t wear torn or ripped clothing.
While I still prefer simple clothes, and have only a minimal number of clothes, I try to buy better-quality clothing and have even purchased a couple of nicer shirts.
Your closet doesn’t need to look like the rack at Nordstrom’s, but you can purchase a few good-quality shirts or dresses. Wear them on a regular basis and feel more abundant by sporting some stylish fashions.
9. Create an inspiration board.
Some people say a vision board can inspire more wealth and abundance. On it, you place pictures of what you want to see in your life.
I have a different approach. I put things on my vision board that simply inspire me and that put me in a better mood. I incorporate quotes that inspire me, people who inspire me, and other photos and pictures that make me feel good.
I use this inspiration board to create a sense of happiness and positive vibrations so every time I look at it, I feel more abundance. My inspiration board is filled with peaceful places, churches, sanctuaries and a few famous people (Oprah, Deepak Chopra and hey, even my hero, Leo Babauta)
10. Be generous.
Finally, there’s no better way to feel a sense of abundance than to give back.
When you give, you feel better about yourself. Giving is the simplest and easiest way to feel abundance in your life.
When you give, you’re telling the universe that you’re in a state of wealth and enough. You can’t give unless you have.
Of course, you can’t give money when you don’t have money. But you can give your time and your energy. You can give your attention and your presence. You can provide free services or just help someone. Do one small act of kindness a day.
All of these practices will help you feel more abundance. If you’re wondering why you don’t have the money you desire, don’t sit back and do nothing.
And don’t take action alone without shifting your vibrations and your mindset.
No online course, special training, or raise at work will help until you change your mindset regarding money.
Start with these money-blocking exercises to break through your abundance blocks.
Feel more abundance and you’ll start seeing more abundance in your life.
You may have grand schemes of hitting the lottery or marrying George Clooney Leonardo DiCaprio to pay off your mounting debts.
Who doesn’t?
In the meantime, you need to get out of debt, sort out your financial life, and start having some sense of control over your finances.
I’ll be honest—I’ve never had the best financial systems in place. Even when I was a practicing lawyer or had other high-paying jobs, I didn’t seem to get how finances worked. My money seemed to disappear pretty quickly every month.
It sure doesn’t help a marriage when you’re constantly in debt, juggling money from one account to another, and trying to stay current on everything that you owe.
No one ever teaches you about money.
How do you save it, how do you manage it, how do you have enough of it to feel comfortable? How do you not look out your window every morning, hoping that the auto dealer isn’t going to swing by and take back your car?
During my divorce, I experienced my greatest uncertainty about money. Not only did I have debts that I had accumulated during my marriage, I had new expenses sprouting every day, thanks to the fact that I was now living on my own and setting up another household.
I had to start over financially because I had no choice. I was tired of not having enough and constantly feeling behind on my finances.
I read books, got disciplined, and picked up an invaluable tip from my bro, Ramit Sethi. (No, we’re not related in any way, but I did grow up in Sacramento and went to a slightly better high school in town than he did 🙂 ) Go Eagles!)
Since that time, I’ve been able to cut my debt, save money, and take months off at a time to travel. Being financially responsible and being able to manage my finances took sacrifice and discipline.
But with sacrifice and discipline came the ability to breathe easier. So did peace of mind.
I don’t know where you are in your life right now, but if you’re facing a major shake-up, such as a divorce or being kicked out of your parents’ home to fend for yourself, you’ll want to follow these 12 action steps to get your finances back on track.
1. Know how much your monthly expenses are.
The first thing I would suggest that you do is to gain some idea of what you’re spending every month.
Yes, you should keep track of all your expenses, but more importantly, you should know which expenses you are absolutely required to meet. I’m talking critical expenses that you have no choice but to pay, such as your car loan, rent or mortgage payment, student loans, and basic utilities like light and electricity.
Know what your required financial obligations are every month. Staying in the dark about what you’re expected to pay will only keep you in the dark about your finances.
2. Count up your debts.
Similarly, figure out how much you owe. What is the total amount of your current debts? Count up the balance of every credit card you own, the outstanding loan payment for your car, and your student loan payments. Try to get as accurate a number as possible.
Also, what is the minimum amount that you have to pay on your debts every month? What is the total of all the debt payments due? For example, if you’re required to pay $200 on a credit card, $300 on a student loan, and $400 for your car payment, your monthly required debt obligation is $900.
3. Determine how much you have left.
After calculating your monthly expenses and becoming aware of your monthly financial obligations (in other words, your debts), the next factor to consider is how much money you have left.
If you don’t have any money left after paying off your basic financial obligations, you have a problem. If you have met your basic financial obligations but you aren’t attacking your debt, you also have a problem, one that, though less urgent than the first scenario, you’ll still need to work on.
Either way, knowing how much you have left for spending money every month will give you a better idea of where you stand.
4. Plan your spending.
Some people would call this a budget, but many other people hate the word “budget.” So how much are you going to spend every month and for what? At the beginning of every month, or even for just one month, determine how you will distribute your personal salary. Organize and plan your spending ahead of time!
How much are you going to pay for required monthly expenses? How much will go toward your debts? How much will go toward your rent or mortgage? Know exactly how much money will go where, and how much you will have left over to spend.
5. Reduce your lifestyle.
You knew at some point that you were going to hear this. You may not like it, but here’s one of the most important things that I did to reduce my monthly expenses.
I reduced my lifestyle.
What does this mean? It means that you might have to move out of your current home, move in with someone else, or even get a roommate. It means lowering the cost of your lifestyle. It means paying cheaper rent in a less desirable place. It means a more modest car. It means less eating out and more cooking in.
You have to look at your finances and seek alternatives to scale back your life. If you’re living a $100,000 lifestyle on a $75,000 income, you have a problem. Cut back your lifestyle to meet your expenses. Move. Buy another car or take public transit if possible. Shop at grocery stores that are farther away from home, but where the food is cheaper.
6. Cut out expenses.
The rebuilding and repairing stage of your financial comeback is also a time for sacrifice.
It’s time to cut out expenses for things that you don’t absolutely need. Bottled water service—cut. Cable—cut. Dry cleaning your clothes—cut. Paid gardeners or landscapers—cut. Eating out several times a week—cut. And sorry, Ramit, but if you have a regular coffee habit or daily frozen yogurt habit—cut. Manicures and pedicures—cut. Well, okay, fine, maybe just reduce the number of times that you go to the beauty salon.
What are your pleasurable habits, unnecessary expenses, and things that you can live without every month? Whatever they are, if they’re not required and not absolute necessities, cut them out. How much will the act of reducing your expenses put back into your pocket every month? How much of that additional savings can you put toward paying off your debt?
7. Automate.
This is the Ramit Sethi tip that changed my financial life. Ramit has a 12-minute video that you can watch here. In a nutshell, Ramit encourages you to set up automatic payments every month with every paycheck so that you essentially can’t touch the money that you’ve designated for your monthly expenses.
Automate so that on pay day, your money goes directly to your landlord, your utility companies, your student loan payment, and your car payment. Before you get a chance to figure out how to blow your money for the month, automatically make the money disappear so that it covers your required financial obligations. Use your computer and online payment systems to meet all your monthly obligations.
With this strategy, you won’t make your financial commitments your last priority, but your first priority.
One super-effective thing that I did was to include my credit card debts in this automated system. At one point, I had $500 of every paycheck going strictly toward paying off credit cards.
If you get disciplined about this system, you’ll dramatically improve your financial picture. You’ll know, on the day that you receive your paycheck, how much money you have left over to pay for other things after you pay your expenses. You’re less likely to waste your money when you know exactly how much money you have.
8. Stop splurging and start cutting your spending.
Here’s the thing. Most of our lives, we are not going to find the discipline or motivation to stop spending because it’s just too easy to buy stuff.
We are constantly teased, marketed to, and sold to by ever-hungry retailers and marketers. They’ll tell you that you should look more stylish, that you should drive a fancier car, or that you’re “thinking different” because of the laptop that you’re using.
The best time to stand up to these marketing ploys and to your own inner desire to spend money frivolously is when you’re at rock bottom. When you’re in a desperate situation and your finances seem out of your hands, that’s the time to reign in the spending and stop buying the things that are unnecessary in your life.
Promise yourself that you will commit to spending nothing frivolously. You’ll spend money only if absolutely necessary for your health and well-being. Commit to ending the spending on clothes, shoes, bags, and Apple products.
A question to ask yourself before a purchase: “Is this purchase required for me to stay alive, have a roof over my head, or be able to eat?” I know, it’s kinda drastic, but if the answer is “no,” don’t buy it!
And you’re not going to live like this for ever – just until you get on solid financial ground.
9. Spend your time and energy on “no-cost” activities.
You might say, “All this sounds great, Vishnu, but should I just call it a day and quit living my life?” If all of these measures sound absolutely boring and stringent, and it seems as though I’m sucking all the fun out of your life, here’s what you can do.
Start taking part in activities that don’t cost money. There’s no better time to start reading those books that you’ve bought in the past, to renew your library card, or to nurture your writing habit. There’s no better time to research, learn about, and get creative about ways to make money. There’s no better time to read blogs that help you simplify your life, get a freelance gig or get a better job.
Instead of dinner out with your friends, how about Netflix and a potluck? Instead of a fancy night at the theater, how about a high school play for a fraction of the cost? Instead of a 49ers football game, how about a Friday night football game at Paly High School?
Free museums and cultural shows? Beaches and parks that don’t charge admission? Free tourist spots in the town where you live? Now you’re getting the idea!
10. Cut up your credit cards.
This might be the last straw for you. How dare I ask you to end the credit card spending? Okay, fine, you don’t have to close your credit card. I’m just asking you to cut it up. Huh?
Here’s the theory—keep your credit card open. You can always call and order a new one whenever you need it. You’ll get a new card in the mail in about three days. But when you cut up your credit card, it won’t be readily available for use.
What if you really need to purchase something that you don’t have the money for? Exactly.
You don’t purchase it.
I know this is extreme, but if you’re trying to get on solid financial footing, you’ve got to take extreme measures. Cutting up my credit card was one measure that I found useful. If you can take it to the next level, close your credit card completely. For sure, close your credit cards at Macy’s, Nordstrom, and Debenhams.
Whatever you might need to purchase from those stores is not essential for you to live!
11. Spend less time with friends who have expensive tastes and habits.
You might decide to start saving money, but are finding it difficult because your social circle likes expensive things and eats at fancy restaurants.
If you’re serious about cutting your spending, you’ll have to cut back the time that you spend with friends who have expensive habits. The people you spend the most time with are the ones who encourage you to spend. And it’s so hard to say “no.” However, even though saying “no” requires a high degree of discipline, it will help you straighten out your finances.
Even worse than dining at an expensive restaurant is going to an expensive restaurant for a celebration, such as a birthday or engagement party. Not only are you picking up the tab for others, you’re splurging on dinner for yourself. You’re also required to bring a gift.
There’s no better time to reprioritize your friendships and the people you spend time around.
Similarly, at work, think about whether your spending is centered around your colleagues. If you’re spending money on daily lattes and lunches out to maintain friendships at work, you might want to hang with a different set of friends (or let your current friends know that you won’t be able to join them for their daily coffee breaks).
12. Start a savings habit.
In addition to the automatic savings plan that I described above, you might consider setting up a savings account into which you transfer money every month.
Although this might make no sense while you’re in debt, here’s how this strategy helped me. It got me to look past my debts and helped me focus on growing my money. I started thinking about what’s possible. I found out that I could actually have a positive bank balance in my account. I knew that I was saving up for the things that truly mattered to me.
So even if you are in debt and all hell is breaking loose with your finances, automatically sending as little as $25 a month to a savings account can remind you what all of this is about.
It’s about getting rid of your debts, getting control of your finances, and getting control of your life. And when you get your finances under control, you’ll have more independence and freedom in terms of what you can purchase. You can do more things that will help you live a more fulfilling and happy life.
I hope that you’ve found these tips useful and that you will start on the path to financial recovery.
Although hitting rock bottom financially can be painful, there’s no better place to start rebuilding your finances and your financial habits.
Only after you’ve realized all the things that don’t work are you prepared to implement the financial habits that do work.
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I help people overcome their devastating breakups and divorces and find love again. Instead of visiting the Himalayas, sign up below and join me. I am taking a writing break but will be back soon.
This guide is free. A ticket to the Himalayas is $2000. Your move.
