I came across this post tonight and it rings true for me.  Does it resonate with you?

Hmmm.. let's see.  I have done  one, two, four, five, six and seven.  I guess I can't say that this is TRULY me, right? Considering I didn't do the third sign, right?  Wrong!  You had to know that was going to be my response.  

Read through these 7 signs. Even if you've done one of these and you said you'd never do it again... your finances are probably out of order.  Don't try to convince yourself that you did number six to do/take care of/pay off  _______.  There's almost no real justification to what you've done.

This year I'm committing to putting money into my savings.  That will remove the fourth sign from my list. 

Think about what you can do differently so this year can be better than the last.

Educate. Empower. Economize.

7 Warning Signs Your Finances Are Out of Order

If you're missing bills payments and not saving, it's time for a financial check-up.

by U.S. News Jan 15th 2014 12:55PM

By Sabah Karimi

Nearly three-quarters of Americans are living paycheck to paycheck and don't have emergency savings, according to a bankrate.com survey last year.

But you don't have to become part of that statistic. If you want to stay on top of your finances this year, make a commitment to review your budget regularly and take an honest look at your financial standing -- otherwise you could dig yourself deep into financial problems that may not be easy to recover from.

Here are seven warning signs it's time for a financial check-up:

1. You keep missing bill due dates. Late payment fees for services like Internet or cable can seriously add up, and you could get in even deeper financial trouble if you don't pay off your credit card bill on time and in full each month. If you're consistently missing due dates on those credit card bills, utilities or even housing payments, it's time to restructure your budget. Take a closer look at your cash flow, and make sure you are accounting for all forms of revenue and expenses in your budget.

2. You're opening more lines of credit. If you're having a hard time breaking your credit card spending habit or find yourself depending on credit, it's time to focus on your financial health. Opening more lines of credit when you are already carrying a heavy debt load can hurt your credit score. If you find yourself exploring more credit offers or loan options just to get by, stop and re-evaluate your finances.

3. You're making credit card payments ... with other credit cards. While making credit card payments with another card is a convenient payment option, you will set yourself back financially by doing so. Paying off one debt by accumulating more debt -- even if it's lower-interest debt -- will keep you stuck in a vicious debt cycle. Instead, look for opportunities to cut your expenses and earn more money to help pay down your credit card debt.

4. You're not contributing to a savings account each month. Saving at least 10 percent of your monthly income is a healthy goal. However, that's not always possible when you haven't taken the reins on your cash flow or don't have an accurate idea of your monthly expenses. When there's just no room to save money each month, it may be time to review your budget and set some new goals. Even a modest contribution toward a savings account each month will help you develop the self-discipline to save on a regular basis.

5. You have no idea the state of your credit. Even if you don't plan on buying a home or car in the near future, you will want to make sure you have an accurate idea of your creditworthiness. Use annualcreditreport.com to order a free copy of your credit report you are entitled to at least once a year. Checking your credit report can also make it easier to catch signs of identity theft.

6. You have nothing in reserves. If you've been dipping into your savings regularly or have just stopped contributing to your savings and investment accounts, it's time to take a closer look at your spending habits and determine whether you are working with a realistic budget. Having no reserves could set you up for financial ruin in the event of a medical emergency, job loss or other financial crisis.

7. You're paying bills with your 401(k). If you find yourself dipping into your 401(k) just to take care of monthly expenses, it's like you're robbing from your future self -- plus you'll probably have to pay taxes and fees on early withdrawals. Instead of taking money from your retirement account, consider supplementing your income with a second job or scaling back expenses to better manage your money.

Sabah Karimi writes for the financial blog Wise Bread, where you can find resources on how to land more jobs by improving your online reputation.

Questions from a Blog Reader: Money Management Programs

Recently I had a reader ask me some questions related to the money management company that I am using to help me pay down my debt.  It was timely because another reader and friend of mine just told me that she has officially enrolled in the program to pay off her debt.  She is now going to pay off her debt in 4 years as opposed to 33 years!  This is all great news for them.

I asked the reader who asked the questions if I could post them along with my responses.  She agreed and I wanted to share them with my readers. She brought up some great questions that I believe everyone worries about when they're beginning to focus more on their financial health. Hopefully my responses will help others who may be deciding to take steps toward enrolling into a money management company.

How long was the process from the first conversation you had with the company until you committing to being part of the plan they proposed?  Do you pay the application fee and then they work with the creditors, and then they tell you how long it will take and how much the payments will be, etc.?  I guess what I am wondering is, if it doesn't sound like a good option for me, what's the point of no return, or when can I decide yes this sounds good or not?

The process could have started just as soon as I finished the counseling portion of the phone call.  Once you pay the application fee, you have to also pay the first installment which seemed like a lot to pay all at once. My issue was that I was never paying all of my bills on time. I'd skip payments so I was never selling out that much money.   The company will tell you the estimated amount you will pay and an estimate of how long it will take you to pay it off before you pay anything.  Once you pay the first installment it usually takes about a week or so before it hits your creditors.  Just know that the company will have contacted everyone once you paid, to let them know what you're doing because they are negotiating your new interest rates, which are generally lower.  You have to know that you will be told that being in the program, they will close all of those accounts that you give to them.  I kept one card (the one that I had the longest).   Ultimately, I say it's a good option for anyone... the real question is, "are you ready to live without using credit?". haha That's the tough part because so many of us are used to just pulling out a credit card for things.  I primarily live off cash now.  I can't even really say that the one card that I have is for emergencies. It has a $300 limit.  What I have learned is that without depending on credit cards and being more mindful of my budget, I have a lot more money than I had before. I have been putting money in savings and that's something I never did before.

Did you every consider bankruptcy? Or could you do that after doing this consolidation if for some reason you felt that was your best option?

I never considered bankruptcy because most of my debt is student loans (over $90K worth) and those don't go away with bankruptcy.  My hope is that when I eventually sell my house that I will make a good amount to pay a lot of that loan down.  The credit debt is less than $20K and is more like paying a car payment. Luckily I don't have a car payment anymore - plus that debt will be paid off in 2 1/2 more years. That's when I plan to sell my house.

You mentioned maintaining one card with a small limit even while in consolidation.  Do they work that out for you with one of your current card?  Or do you do that yourself?

The company may insist that you put all of your creditors into the program.  I had one card in full on collections so it really didn't matter whether I added them in the program or not. I did get to choose the card I wanted to keep and I choose the $300 limit one because I knew that I could never dig myself into the hole again.  If I really wanted to, I could pay off that balance in just a couple months time with diligence.   You can tell them that you want to keep one but they certainly tell you what the best method is. haha

Did you have any store specific cards?  Were those included in your consolidation?

I put all of my store cards on the program too.  Honestly, store cards are really bad cards to have anyway.  Their interest rates are typically higher and if you have a major card anyhow, you wouldn't need a store card.  That's just me preaching though. hahaha Sorry.  I've gotten so frugal that it's crazy.  I shop clearance racks like a champ! Clearance in the grocery store, clothing store, bakery, Starbucks, you name it.

Lastly, I know on your blog you talked about some expenses due to home ownership like a furnace, etc.  I am thinking in my head...what if while I'm in this consolidation program something bad happens with my car, God forbid, or something along those lines.  Since, you can't open any new lines of credit while you're in it, what would you do in that case?  This sounds so trivial!  Maybe you have savings, but I am trying to play through all the possible scenarios.  I realize this is probably the best thing for me either way, but I want to go in as informed as possible when I call them.

You're right! What do you do? That was one of my worries, too.  You'll be surprised how much money you can save just by looking into your options.  I started saving money as part of this 52 week money challenge I started with friends. You have to save for the "just in case".  That's pretty much the only way.  If my furnace broke down and I didn't have the money - I at least have space heaters or at worst, I could get a kerosene heater.  If the A/C broke down, well, I'd buy fans.  When I needed my furnace worked on, I have some savings so that helped.  Other things that might help is to really investigate what's available to you or what you can do to save money.  Is there a commuter plan at your job?  Maybe carpool?  Do you really need cable?  How about the gym membership? You can find ways to cut your utility bills.  If you have a smart phone, maybe it's time to put it on sabbatical until your bills are paid off (which has been a consideration for me). Cooking your meals at home instead of eating out is another option.  It seems really scary but once you commit to it you really do just find ways to make life work.  

One thing Suze Orman told me to do when I was on her show was to stop bowling in my league each week.  That's one piece of her advice that I didn't take.  I still bowl but I make room for it in my budget and adjust other things.  I keep my meals to $3 - $5 each during the week and that allows me to put some money in savings and to bowl.

It is most certainly a lifestyle change. 

Educate. Empower. Economize.

The Situation or the Fact

 Here's a quote I read yesterday.
 
Exerpted from Oneness with All Life by Eckhart Tolle. Published by arrangement with Dutton, a member of Penguin Group (USA), Inc. Copywright © 2008 by Eckhart Tolle

The primary cause of unhappiness is never the situation but your thoughts about it. Be aware of the thoughts you are thinking. Separate them from the situation, which is always neutral, which always is as it is. There is the situation or the fact, and here are my thoughts about it. Instead of making up stories, stay with the facts. For example, "I am ruined" is a story. It limits you and prevents you from taking effective action. "I have 50 cents left in my bank account" is a fact. Facing facts is always empowering.

Read more: http://www.oprah.com/own-supersoulsunday/blogs/10-Powerful-Insights-to-a-Happier-You?TW=tw_omag_tolle_10_insights&hootPostID=bdb5e7e1d7cbaeb2d10c2b12d31e4727#ixzz2HQspJpyG

At first look, I was like, "Okay.. yeah, I get that. My happiness is dependent on how I look at the situation."  Then I read the example about money.  BINGO! This is what this blog is all about!  Recognizing the story you tell yourself about your finances and how you manage them.  Living in your truth. My situation is that I can't afford to do or buy anything.  I don't really need to do or buy any of those things I wanted to buy because they aren't necessities. The fact is, I'm going to be out of debt in 3 years or less. And that's worth more and will feel much better than having a Smart TV or an iPad.

Over the last few days I have gotten messages and emails from people saying how brave I am for putting all of my business out there. Or how empowering it is. I appreciate it - but how empowering is it to you that I am doing this?  Have you faced the facts about your financial struggles?  Have you owned it and claimed it as your own to others?

I've tried to fix my finances on my own (quietly) and tell others everything was fine when it was really stressing me out. Time and time again I would fall right back into the same patterns. Paying credit cards off only to run them right back up so I can do things that my friends were doing.  Once I took the leap and just lived in the truth that I wasn't doing well financially - then I was able to face it with much more confidence and with the support of my family and friends. 

Don't get me wrong!  It took me going on television to be pushed into that mirror and truly see myself. 

Just a short reflection on something I read.

Educate. Empower. Economize.

Facing My Financial Truth

In 2012 I taped a little show by the name of The Suze Orman Show.   It was the start of something big.  The start of living honestly about my finances.

Going on the show was a whirlwind.  It happened seemingly overnight.  One day I was responding to a tweet from the Suze Orman show that asked for viewers to write in with their story. The next day I was sitting in a studio.  In my email to the show I said, "I'm in so much debt and I have no idea what to do. I bought a house, I have student loan debt and I'm behind on a lot of my bills.  I don't want to be like this when I'm 50!"

What in the hell is about to happen to me?

The producer asked about all of my personal finances. Which was embarrassing on many levels. Having watched Suze raise her voice many time over at people over some of the choices they would make,  I knew I was standing in line to get a Suze Smackdown.  Over the next week I had a few more conversations with the producer about my finances and my story and she informed me that we would be taping within a week! Oy!

This was the start of me living in my financial truth.

When I taped the show I was totally petrified - trying to really be present in the moment. What was TRULY happening to me in front of countless viewers?  You can see for yourself.

Clip of my appearance on The Suze Orman Show

Facing the truth is hard. Especially when someone presents you your truth and you don't recognize it immediately is huge!  When she said that I am almost 40 years old and don't have anything to show for it - that resonated with me like I was in the tower with the bells of Notre Dame!  It felt so totally awkward but on the other hand it felt like such a relief. Now that my truth is out there it's easier to continue living in my truth and be honest with others. When I can't do something I don't. When I want something I recognize it for what it is. A want.  I even have friends that will comment on things I may purchase by saying, "Would Suze approve?"

My truth was made available for the entire world to see. I'm now seeing it, too.  It's time to make a change so here I am.

Let's make 2013 the most financially smart year, ever!

Educate. Empower. Economize.