Do you have “Refund Check-itis?” Do you intend on making a large purchase or taking a dream vacation with your refund check?
- Have consumer debt (automobile, credit cards, student loans, private loans, etc.).
- Do not have an emergency fund equivalent to 3-6 months of expenses.
I know that sounds horrible because you had big plans for that money. I’m sorry. 🙁 But, if you are sick and tired of being a slave to the lender, and/or not having the money to respond to life’s emergencies without using a credit card, you have no business doing anything with that money until you’ve achieved those two goals.
For those of you who are behind in your household bills or your car needs repairs use the money to get current, and fix the car-but that’s it! No big screened television, new wardrobe, or dream vacation until you have a emergency fund and are completely out of consumer debt.
One of my favorite authors, Dave Ramsey says an emergency fund is your insurance policy. It protects you should something bad happen. Guess what, bad things happen to good people; they lose their jobs, become ill, the car breaks down, and the washing machine needs replacing. A fully funded emergency fund provides the money needed to respond to those inevitable events.
Why do you need to be out of debt? Debt is a continuous cycle that many find difficult to get out of. It takes money out of your monthly budget to pay for things you bought and probably have no use for, but still have payments. Debt should be avoided at all costs. Saving up to pay for items requires discipline and and focus, but you pay less when using cash.
If you will receive tax refund, the first steps are to begin an emergency fund and a develop a snowball debt-elimination plan.
I am not saying that you should not have fun. I am not saying that you should not have nice things. However, if you are sick and tired of your financial situation, it’s obvious that your current system is not working, and you have to put your desires on hold-temporarily.
Remember, insanity is doing the same thing expecting different results. Stop fooling yourself girlfriend, change your mindset, change your habits, change your financial future.
If you’ve #Got Broke-i$m, and want to #Stop Broke-i$m contact me, I’m here to help.