Financial reassessment will help you to gain control over your finances and obligations, reduce your stress, as well as re-address your desires, and needs. You may believe you have control over your money, but when you overextend yourself, you lose your control to your finances and to your possessions. Your possessions begin to command your life. The more that you have the less time you may have to actually enjoy them.
- Assessing your needs
Before committing to a substantial purchase take the time to do a financial reassessment on the item in question. Every possession that you acquire places demands on your time for its continued maintenance, this can increase stress in your life and decrease cash in your pocket.
When securing a loan you not only need to take into consideration the monthly payment obligations, but also consider the expenses you will incur for care and upkeep, as well as repairs and maintenance.
Careful consideration, rather than compulsive purchasing, may save you thousands. Learn to monitor your purchases, don’t shop impulsively, and most of all don’t overextend yourself or your family by creating debt that becomes more of a hindrance than a pleasure.
- Clean House - If you are already overextended, consider alternative options to resolve your issues. Be brutally honest about what you truly need in your life and what you can let go of.
In regards to financial reassessment ask yourself
the following questions to help assess your needs:
What items are weighing me down?
What financial obligations am I committed to?
Review the need for each of these items by asking yourself further questions:
Do I get enough use out of the item to warrant the debt in time and money that I contribute to it?
What items can I release that would free up my obligations and give me more time to enjoy what I value most?
- Consolidation – If you are struggling to relieve yourself from debt, it is best to consider consolidating your bills into one payment. Check with your local bank or a consolidation company.
Make purchases using cash whenever possible.
Only keep one credit card for emergency purposes or lump sum purchases (small sums) that you don’t have the cash on hand to purchase at the time. At the end of the month, be sure that you can pay the balance in full to avoid interest charges. Paying the bill in full keeps you from spending more than your monthly salary.
We unknowingly bind ourselves with stress and drain our own energies by cluttering our lives. Once you have completed these three steps it is important that you do not backslide and recreate bills that you have just gained control over.
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