The Money Saving Fifty (50)

Finding More Than 50 Ways To Save A Buck

The Money Saving Fifty (50) header image 2
← Money Magazine Subscription Teach Your Child the Benefits of Saving Money →

Take a Realistic Look at Your Spending Habits

April 16th, 2009 · No Comments

Recently, there was a TV program about people who are having problems paying there debts. One woman was chosen to receive advice from a financial counselor. The result of this encounter was enlightening.

The financial counselor went over the woman’s credit report, income, and debts. After a while, she looked at the woman and told her she was in debt for $108,000. There was instant shock on the woman’s face. She hadn’t realized that she owed that much money.

The financial counselor asked the woman to call several credit card companies, beginning with the company which had the highest interest rate. After several calls and definitive tones, the woman was able to lower most of her credit card interest rates. This example is just one of many scenarios that most people are facing during this recession.

Most would suggest she should have known how much money she owed. While the general consensus would agree, the truth is the woman was fearful of what she might find. Instead, she paid the minimum balance on her cards and it wasn’t until she found herself in a position where she might lose her home that she finally faced reality.

This story is analogous to someone with a weight problem, for example. Perhaps the doctor has been telling the patient for years that he needs to lose weight or he will face serious consequences.

The patient listens to what the doctor is saying, but the subconscious mind is not accepting the reality. Instead, the patient is justifying his actions by giving the doctor excuses.

In both examples, fear is the catalyst that prevents each of these people to face the truth. Denial also plays a role in their inability to accept the reality that they are on a precipice and, unless and until they change their mindset, they are doomed to repeat the same mistakes over and over.

We all have our own financial realities to face; the question is: Are we strong enough to meet the challenges and make the changes needed to find the path to financial freedom?

Related Blogs

Tags: Personal Finance

0 responses so far ↓

  • There are no comments yet...Kick things off by filling out the form below.

You must log in to post a comment.

  • Pages