Did You Ignore the Warning Signs?

Our money lives were a mess back then.

It was hard to admit that we were a total shipwreck.

Especially embarrassing since I am the "money gal" in this family.

I've been counseling others on money and debt management, as well as the deeper issues that money elicits in us, for the better part of 20 years.

Unimaginable for us to end up in such a seriously awful place with all this knowledge, expertise, and wisdom about money?

As is true for many Americans, It happened slowly over time.

Little shifts and warning signs that we handled. No drastic changes in money behavior required of us. Just a glitch. Nothing serious.

Or, so we thought.

Yet, those small, initial warning signs were bigger than we recognized.

How was it possible for us to have missed them? Are they truly that subtle?
All was well in money land. We had a nice house, a healthy 401(k), and income flowing in regularly. We drove nice cars and paid our bills on time. We used credit wisely, something we thought was required of us to build a good credit score.

Took periodic vacations to nice places and celebrated holidays and birthdays with relish.

We followed all the rules that the financial experts suggested and for many years we hummed along just fine.

Until we didn't.

And, in a blink of an eye, we crashed and burned.

How was that possible if we followed all the rules?

What if the rules had changed and we simply hadn't noticed?

Maybe we followed them incorrectly?

Or, what if they were ones we were not meant to follow in the first place?

Those were disturbing questions to ask, yet the answers were so desperately needed. Not only for my own healthy money life but, for my clients, too.

I had to take a step back...

And, take a big, deep breath...

Then, dive into what really happened.

It took courage to look back at all the warning signs we had missed and admit we could have done something different back then.

At first, I beat myself up. Blamed myself for my stupidity and ignorance. Chastised and criticized my intelligence, know-how and abilities.

But then, my anger set in and kicked me into gear. Enough with all that self flagellation. It was time to take action to turn this shipwreck around!

So, what were the warning signs we needed to sit up and take notice before they became unmanageable?

You may be surprised by some of them, something that I, too, had to embrace.

Here are nine of the most prevalent warning signs:

1. You outgrow your house or feel compelled to buy a different one. You believe newer, bigger or a different neighborhood is better. Or, that you need more room for your stuff.

2. You refinance the house to pay off debt. Or, to pay off your car. Maybe more than once.

3. You believe your house is an asset and its equity is healthy. You look great on paper, but you can't put food on the table, or pay your bills with equity. And, as long as you live in the house, it is a liability.

4. You use credit to pay for everything or to get things you do not have the cash to buy. Did you know that when you use credit to buy or pay for everything, you spend more? As much as 83% more. And, by the way, if you don't have the cash for it, you can't afford it.

5. You don't save regularly or have an emergency fund. Just one glitch or extra cost could mean you can't make ends meet or pay your other bills. Flat tire anyone?

6. You have magical thinking. You are convinced that everything will work out no matter what you do or how bad it gets. Where's that magic wand when you need it?

7. You wing it or fly by the seat of your pants. You have no plan or budget. You earn the money. You spend it. That's it.

8. You believe you will earn more down the road. Even though statistics show that paychecks are flat, barely a single percentage point rise in salaries in the last 40 years.

9. You thought the financial road map you were following was the right one for you.

How many of these do you see in your financial life? Any of them make you squirm a bit?

Did you find yourself objecting to any of them being a warning sign? If so, that in itself may be a warning sign!

After all, I did not see the big mack truck coming until it hit us full on. Not to be graphic, but it was a shock.

All it took was a financial downturn in 2008 on top of my husband's company doing a big layoff, for which he was one of them. Add to that, our 401(k) dropped by half and our house was upside down.

I realize these were catastrophic life events, which most Americans would not survive financially.

However, we certainly would have weathered the storm better had we taken heed of the warning signs early on.

Want to know what we did to turn things around?

* We accepted responsibility for the mess we had made of our financial lives.

* We stopped using credit to buy things, in fact, we no longer used credit for anything.

* We paid off and kept our vehicles.

* The only debt we had was our mortgage.

* We cut back on unnecessary spending, and paid cash for everything.

* We planned and tracked our money regularly.

* We did not buy anything we did not truly need and got rid of stuff we no longer used or wanted.

* And, we did not upgrade our home to "keep up with the Joneses!"

In other words, we made radical life changes.

We admitted we messed up, took responsibility, took a deep breath and changed our ways. AND, designed and followed our own money road map, not someone else's.

We have recently even considered selling our home, banking our money, and renting.

Now, that's radical folks!

Maybe a few of these ideas would work for you? Why not give it a try! Don't wait for that big mack truck to get your attention!

No need to agonize over money matters. There is an easier way -- a pain-free money life.

Not experiencing that?

Well then, Let's talk

Because, by the way... I didn't do it alone. You don't need to do it alone, either!

Email me at joan@joansilva.com to learn more.

Article Source: https://EzineArticles.com/expert/Joan_Silva/2376465

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