I KNOW that our economy in the last several years has caused a lot of financial problems for a lot of people. A lot of families are struggling financially every month and are living paycheck to paycheck, thus making it impossible for them to save for their future. They feel like no matter how hard they work, there never seems to be enough money to go around and they’re always broke before next payday.
Chances are you know someone who is struggling just to keep their head above water. Maybe they’ve lost their job. Maybe their business is not doing too well. They are living on the edge every month and they feel that they could fall off anytime. Unfortunately, very few people have a safety net, like some kind of an emergency fund that can keep them going for a short time while they are trying to figure out their next step.
It’s easy to blame the economy for our money problems. However, one thing I’ve learned over the years as a bankruptcy attorney is that with certain people, there ALWAYS seems to be a financial crisis no matter how the economy is doing, good or bad. No matter how much money they make, there never seems to be enough because as their income rises, so do their expenses. For example, if they get a raise, they will always find a way to spend that extra money instead of saving it. As long as they can make the minimum payments on their credit cards, they think they’re doing OK and that they have their finances ‘under control’.
If you are spending all of your income every month, you are making yourself very vulnerable to a lot of changes that life may bring your way. With no cushion to fall on if you lose your income, you can have an immediate financial crisis that you are not prepared to handle. So how do you create a safety cushion?
The first step is to start saving part of your income every month starting NOW. Not later when you think you’re doing better. Not later after you’ve paid off all your debts. The time to start is now. This may seem counterintuitive if you’re buried in debt but I personally think that saving money even while you’re in debt gives you a psychological advantage knowing that should you have a financial emergency, your family will not be out in the streets the following month because you have nothing to live on. Pay your debts but also find a way to slowly build an emergency fund. This is money that should NEVER be touched except for an emergency.
If you are drowning in debt, you need to figure out a way to reduce or eliminate your debt. A lot of you reading this can’t even put aside a couple of hundred dollars a month because you can hardly pay your credit card bills on time. If you are financially strapped every month because of high debt payments, you need to figure out a strategy to escape the debt trap so you can start building a good financial future for yourself and your family. The payments you are making on your debts every month should be money you are saving. Think about it.
As we start another year, it’s time to review your financial situation and set new goals for yourself and your family. Make 2016 a better year! If you are in debt and need professional help, don’t be embarrassed in finding out what your options are and asking for legal help. For a free consultation, please call my office at the Toll-Free number, 1-866-477-7772. We have offices in Los Angeles, Cerritos, Pasadena and Valencia. I will help you get your financial house back in order.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1 (866) 477-7772.