There's an old saying that may be relevant to anyone thinking about those bygone days when setting financial goals and retirement planning was in vogue.
The saying goes - when you are up to your behind in alligators, it is difficult to remember your original objective was to drain the swamp.
No matter how dire things might seem right now, this too shall pass so perhaps it's time to think about things you can do that even in these darkest days can help with your finances.
Here are 7 things you need to know to restore financial health - both now and into the future: 1.
Track what you really spend.
2.
Eliminate the unnecessary.
3.
Live well below your means.
4.
Save.
5.
Buy Smart.
6.
Check your taxes.
7.
Monitor your credit.
Track What You Spend and You Might Learn You Spend More than You Make In a cash only economy it was relatively easy to keep track of what you spent.
You left the house in the morning with $40 in your pocket or purse and at night you returned with $10.
The immediate feedback loop back then had a self-correcting quality as the realization you spent $30 in a single day prompted the question - where did it go? So, back then some people answered that question by keeping a journal of where it went.
Not only did they know how much was spent; but exactly on what it was spent.
In a credit economy, tracking spending has become very difficult.
When you swipe the card the charge gets buried in next month's minimum monthly payment.
Many people have more than one card and who takes the time to sit down and review each item to see what you actually spent and where? Some people that do are shocked to learn that credit makes it easy to spend more than we make.
That said, the first thing you need to know about restoring financial health is to start tracking what you spend and what you spend it on.
Eliminate Unnecessary Spending Once you know with certainty where your money is going, you're ready to cut out what you don't absolutely need.
This is something that will help you right now and keep you on a sounder path in the future.
Establish a budget and stick to it.
Allow a percentage for a few frivolous things when times get better, but stick to that percentage.
Live Well Below Your Means Check some bios of wealthy people and you'll find many of them not only live lifestyles that don't match their incomes, they actually live below their means.
If you're struggling now you are already learning to sacrifice.
Keep that in mind when things get better.
Save Once we lived in a savings culture and it's time to get back to that again.
Many people in trouble today might be able to survive if they had substantial savings to fall back on.
In the 1950's, life was all about saving.
Today, it's become all about spending.
Buy Smart Chances are this is a skill you're learning now.
If you don't need it, don't buy it; no matter how great the sale.
If you do need it, have patience and buy smart - wait for the sale.
Check Your Taxes Many people with relatively straightforward finances do not see the need for a high priced accountant, so they overpay their income taxes by failing to take advantage of every possible deduction.
Similarly, many homeowners pay more in property taxes than they need to since they may be unaware their property is over assessed.
Check for tax deductions and learn how to appeal your property taxes.
Monitor Your Credit Rating If you're in a financial quagmire right now, chances are your credit rating is suffering.
Start taking advantage of those free credit report offers and learn how to read a credit report and correct it.
If you start working on these 7 things you need to know to restore your financial health, you will "drain that swamp" and yes, those alligators will go away in time.