How Did You Get So Broke?
Stuff happens. Some you can control. Some you can’t.
If you’re a young person just starting out, you may not be broken. Yet. You may still have other people you can depend on to provide the necessities. Others may be on the way to not having money because of the impact of the COVID–19 pandemic. Or maybe there is a divorce in your midst; or a horrendous medical situation that is draining every resource you have; or the student debt you’ve been carrying is dragging you down; or your job is no longer your job; or a flood, fire, catastrophe has swept you away; or you’ve been scammed; or you went on a credit card spending binge; or what?
Stuff happens. Some you can control. Some you can’t. Let’s focus on what you can control.
When you sit down to pay your bills do you ask yourself,
How did I get so broke? … or How did I get here?
Start with What You Can Control
For circumstances that affect you directly, you will have to fix it. Ignoring it or refusing to act will only make it worse. Lack of control over any situation requires you to stop and think. And be truthful with yourself. And ask: “Is it something I can personally control or is it one that is up to someone or something else to fix?” Catastrophes caused by outside forces will affect you personally and you must deal with the consequences of them. Acknowledging that “whatever” it is that happened … you didn’t create/cause it, yet it has happened. If you become snagged in something you didn’t create, and it has affected you financially, what do you need to do as your next step? The answer to that question is, “Stop and think. “
Personal catastrophes that have a deep impact on you … and others. Okay.
First, resolve face it. ignoring a problem never solves it
Second, ask yourself, “How did I get so broke? Spending money I didn’t have on every shining bauble? Using credit cards to buy “stuff” I really didn’t need?
Third. Failing to plan. To overcome brokeness you will need a plan. Figure how much money you have coming in and how much is going out. Consider what bills you have that you can eliminate.
Fourth. Consider other ways to bring in money. Sell stuff you no longer need or use on line. There are a number of on-line companies that will sell your stuff from books to clothes. The list of possibilities is endless.
What Facing just one piece of the problem and acting will help you start to overcome the paralysis that’s holding you back.
Patricia Lane Williams CPA is the author of Your Money: How to Get Hold of Your Money Before Debt Gets Hold of You. As a trusted resource for the accounting profession for over 30 years providing content for their continuing education. Her website is PatWilliamsAuthor.com and she can be reached at PatWilliams.Author@gmail.com.