Taking Charge of your own Personal Finances

Today I came across a great quote by the author Jack Canfield and it made me think as I saw all the people protesting on Wall Street with promises of taking it to other cities. The quote is as follows: 

“There is only one person responsible for the quality of the life you live. That person is you. If you want to be successful, you have to take 100 percent responsibility for everything that you experience in your life. This includes the level of your achievement, the results you produce, the quality of your relationships, the state of your health and physical fitness, you income, your debts, your feelings-----Everything!... You have to give up all your excuses.”

I agree with almost everything Jack is saying here with the exception that bad things can and do happen to us that are outside of our control. I think he makes a great point. Why don’t each of us including the people protesting on Wall Street, stop and take responsibility for ourselves. If my economy stinks, I need to work on my economy.

Where do you start to fix your personal economy? Why not start at your own home. Just think of it, if each one of us would take some time, effort and training to work on our own economy and fix our little world at home, what would it look like?

I would start with where I was, if it were me (and it was me back in 1998-1999 when I hit bottom). 

I would take a snapshot of my financial life. First I would write down how much money I would be bringing home. Next, I would write down a budget of my monthly expenses including my rent, insurance, utilities, food, clothing, eating out, medical, car repair and more. I would spend every dollar on paper on purpose before the month started. I would then subtract my total from my estimated budget from my total income coming in the door. This would then give me a number I could use for paying off debt, savings, emergency funding or funding for short and long-term priorities.

Lets say, my cost of living exceeded my income, what then? Time to adjust. I could choose to increase my income (work extra hours or a part time job), tighten up my budget, sell something of value or contact each of my creditors to ask for better rates and lower payments. The choice is mine. There is no bail out program for me or you out there. Wall Street is not my problem or my solution. I need to spend less than I make, that is my problem.  This is a touch choice but it is an option I have. I may not have chosen to loose my job, but I can chose to work 40 hours a week looking for a new one or starting a side business or working evening to help pay the bills.

Personally we did this six years ago. We were over $265,000 in debt including a house, car, camper and consumer debt (credit cards). Over the next 5 years we worked extra, tightened up the budget, sold lots of stuff and paid off all our debt. This included our home

This was such a great feeling but it was only the first step. The next step is what I call the world changer. Once you get your personal economy going in the right direction, and I am not talking about starting after you become totally debt free, start sharing your journey and teaching others.  We have spent the last five years leading small groups through a program called Financial Peace University at our local Church.  If each person would just help three people a year who would help three people a year, who would help three people a year. You know where this ends don’t you?

Over the next decade we could help educate, equip and inspire one street, one neighborhood,  and one city at a time. No longer would we be paying all this interest rates to the big banks owned by wall street, we would be saving money and paying cash and helping local charities.

So if you want to make a statement about the economy to Wall Street, start at home and take care of your own personal economy and then go help a neighbor, relative or friend do the same. It works every time, spend less than you make and you have money to save, give and buy what you want. Lets go punish those big guys on Wall Street by taking responsibility for your own personal finances.