"More people would learn from their financial planning mistakes if they weren't so busy denying that they have made them."- Glenn

There cannot be many of us that are unaffected by the current global financial meltdown and I'm sure that it is the one thing that is at the forefront of most of your minds.

And even if it was not, the simple act of turning on the television, picking up the newspaper or turning on the radio will quickly change that. As you quickly begin to think about financial planning. 

But no matter what going on in the world around you the most important question for you is what's going on in your household.

So “Are You In A Financial Crisis?”

And you can easily determine the answer to this question by your response to these money management statements:

1. I normally pay only the minimum amount due on my credit card bills.
2. My credit card balances is increasing each month.
3. There are arguments in my home about money.
4. I sometimes hide purchases from my spouse.
5. I am now charging items that I used to pay for with cash.
6. I am buying groceries or gas with my credit card.
7. I have begun using cash advances to pay my bill.
8. Most of my credit cards are near or at their limit.
9. I do not know the total amount that I owe.
10. I skip paying my bills some months, or pay late.
11. I have less than $1,000.00 in savings.
12. I am worried about my debt.
13. Collectors have begun contacting me.
14. If I lost my job, it would mean an immediate financial crisis in my life.
15. I have no peace of mind savings account.
16. Next month’s bills arrive before I’ve paid this month’s.
17. I do not open my bills when they arrive.

1. Stop borrowing! 

   It is easy to think that you can borrow yourself out of a bad situation but that is not so.  As consolidation loans are just a band aid approach to the real problem, and unless the underlying problem is addressed a new loan will only mask the situation for awhile resulting in a much worst situation. This is why financial planning is so important/

2. Consider getting a financial coach. 

   It is like having a personal financial fitness trainer.  You will get personalized help in clarifying your goals and creating an integrated financial plan.“Taking Control of Your Money” financial coaching program is a good start to your financial planning.

3. Document exactly how much debt you have. 

   This is no time for guessing you need to be clear about this issue.  List all your creditors, the total amount owed, and the required monthly payment along with the interest rate you are paying on them as well.

4. Make your monthly payments on time! 

   This is important because you do not want to incur any late fees or other charges which will only increase your debt.

5. Track your spending.

   Once you are paying you bills on time now is the time to start tracking your other spending for a period of thirty days.  This is important because you need to see if there are any extra money that you can use to help pay down the debt. So start keeping a journal of your spending."Taking Control of Your Money" workbook can help

6. Develop You.

   You need to increase your ability to earn money.  This is your opportunity to ensure that you create as many streams of income as possible. so take a serious look at your skill and begin improving them right away.

7. Start Saving! 

   The only way to change your financial situation is to start keeping some of every dollar you earn for you.