How Do I Know If I am Eligible For Student Loan Debt Consolidation?

Many times people complain about being in debt or not knowing where their hard earned money went. When they are asked about their budget, how much they owe, which expenses they can cut, they just stare at you as if you were talking to them in a foreign language. What is truly amazing is when they refuse to invest in a family budget and expect to get out of debt and/or build financial wealth.

I am always amazed at this, how can you get out of debt if you don’t even know your current situation, if you are not willing to work to change your current situation. How can you achieve your financial goals if you don’t even know where your money goes. Remember, you cannot arrive to where you want to be if you don’t know where you are right now and what will it take to meet your financial goals. Those who fail to use a family budget often end up with family problems and worse yet, devastating losses all of which could have been prevented with a little bit of planning.

The purpose of family budgeting is:

1. Provide valuable information to make informed decisions.

2. Cutting costs

3. Gaining control and curbing expenses

4. Lead a stress free life when it comes to your household finances

5. Starting to save and build up wealth over time.

Budgeting is not just about restricting spending and living a cheapstake life. It is about informed decisions, action, and sustained discipline when it comes to your household finances. It acts as a guide so you know where all the money you bring goes on a monthly basis. It is not intended to restrict your life style, but to help you lead a stress free life when it comes to money matters. However, family budgeting does not have to be complicated like many people are lead to believe. It does not require an accounting and/or finance degree. In fact, I suggest that when you start your family budget you keep it simple.

I suggest that you have a written family budget. Why a written budget? Having a written budget makes you accountable for your finances. Most people don’t think about how much money they spend per week or monthly, but when you write down your expenses on a piece of paper or spreadsheet, it provides you awareness of your spending habits. It creates a framework to getting your family ahead financially and build wealth.

Here are a couple of places where you can start gaining understanding of your current situation:

1. Bank statements

2. Credit card statements

3. Credit reports

4. Tax returns

So what simple steps can you start taking today to address your current financial situation:

1. For small deficits you could start by reducing expenses such as: entertainment, cell phone plans, cancel pagers, bring your lunch to work, cut your latte macchiato in Starbucks, and catch the subway or bus to work to name a few.
2. For large deficit, you will need to make more drastic changes such as: increase your income, downsize your vehicle, downsize your accommodations.
3. For those whose income covers all of the expenses but does not provide surplus, you may still want to take a look at your spending habits to allow for savings and building wealth. Register to receive our free newsletters with valuable information on how to create savings and build wealth over time.

The secret of true financial wealth is not in how much money you make, but how much money you get to keep. Do you want to accomplish your financial goals? Do you want to educate yourself on how to build wealth over time? Work from home or part-time to generate multiple stream of income? If you answered yes to any or all of these questions, I invite you to register to our wealth building network blog to receive our updates packed with pearls of wisdom, be informed about recommended reading and upcoming e-books, and other valuable information on how to build, grow, and protect your financial wealth.