Tough Financial Times - 3 Key Questions

Times are flat out tough right now. Everyone knows it. Sure, some are out there doing just fine in the chosen line of work, but a big majority of the people are really stretched right now, many to the point of losing everything they may have.

The first step to surviving these times is to evaluate 3 simple questions.

What do you have? You must identify what you have right now. All material and financial resources need to be identified. If it is an object, can it be sold? For how much? Financial resources include insurance policies, retirement accounts, income from jobs, money that is owed you, etc. How much is there that can help you out of your current situation?

What do you owe? This is the next, and it's just as big as the first. Who, what and how much do you owe. House, car payments, student loans, etc. But, you absolutely must also include your monthly costs...utilities, gas for your car, grocery money, money for the kids at school, etc. Everything that is an outgo financially must be identified.

What do you need? This is the biggie. You must now, after answering the first two questions, answer this third one. What are your priorities? What do you really need? Are you making a payment on a fancy TV? Come on, really? Get rid of it. Do you have two cars, but really only need one? Get rid of the extra. Are you living in a house that you can't afford? It's time then to make that difficult decision to move on.

These questions, and your honest answers, hold the key to your financial future. But don't fool yourself, because you are the only one that can provide yourself with help you need to survive these tough financial times.

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