cr-cards

Are credit cards and other debts eating up your hard earned money and creating unbearable stress in your life?

Need a TURNAROUND!

Although my career has been in business finance and management, I found the principles I used to turn troubled companies around to be just as successful in turning personal finances around.

I have read many books on personal finance and have taught seminars and even done one on one financial counseling though our church with couples. In all the materials I have seen, none give this next foundational secret to solving every financial problem. It has never failed with scores of families (and several companies)!

So what is this secret principle?

Change what you are paying attention to!

Huh?

Yep! Change what you are paying attention to!

Here is what I mean.

Financial problems are always made up of many smaller problems. These probelms accumulate over time and then all of a sudden seem to spring up from nowhere. But the “springing up” is just when the many small issues build up to a point that something breaks. A mortgage payment is missed, a surpise medical bill comes through, or a job is lost. Suddenly more and more bills can’t be paid and the phone starts to ring and collectors become more and more persistent.

The standard way to respond is to pay attention to the most intense collection process at the time. This may solve one problem but other new ones begin to form and fester. The cause of the problems in the first place has to been solved! Other old problems go from small problems to bigger and bigger ones. More new problems start.

Over time the total financial problem grows and grows and grows. This is the wrong way to solve any financial problem!

Paying attention to individual problems and responding to the ones with the most pressure at the time simply causes a Financial SNOWBALL to grow and begin rolling downhill. This Financial Snowball picks up speed and more small problems and its momentum gets faster and more powerful rolling down that hill.

So if this is the wrong way – what is the proven successful right way?

The right way to solve a personal (or business) financial problem is to draw a line in the sand and say “NO NEW PROBLEMS!”

Your time, attention and energy needs to be given totally to not creating any new problems.

In the financial arena the line is drawn in the sand and you create no new problems when you set up a ZERO BASED BUDGET (ZBB).”

You develop a ZBB when you reach a break even point on your bottom line so you are creating NO NEW DEBT.

Then you move the slope of your personal finances from downhill to a level slope. The ZBB is your line in the sand.

In the few weeks, I will go into more details about creating a ZBB and how this gets you out of debt at a surprisingly fast way.

Perhaps you or a friend could use some help in getting out of debt. Why not share this post with them and stay tuned for more help!