Runaway Checkbook

 

What Causes Financial Problems?

 

There are two main causes of financial problems:

1. No system in place to organize spending

2. Not being content and wanting it now

Most people do not keep a checkbook register and simply just write checks without really knowing how much money they have, or they login online to their bank account and look at the balance that is available.  There is no way you can effectively manage your spending that way.

 

For the first time since the Great Depression, Americans were NEGATIVE savers in 2007.  That means we spend more than we earn as a whole.  I believe the reason is that we want things NOW whether we can afford them or not.  That means we borrow money to buy virtually everything.  We buy cars and furniture with loans.  We use credit cards instead of cash and have no problem carrying a credit card balance.  Try for just two months to only use CASH to buy discretionary items, including groceries.  Do not use credit cards or checks.  It will be incredibly hard because you will not have enough cash. 

 

Most likely, if you are reading this website, then you have cash flow problems.  You most likely have credit card balances and several loans. That means you are spending more than you are earning.  If your debt has been increasing over the years, then you are spending more than you are earning.  If your mortgage has gone up over the years as you have bought new houses, you are spending more than you are earning.

 

If I am describing you, then you need this website.  Keep reading the other pages.