The truth of the matter is that if you keep doing the same things over and over and expect different results, you’ll set yourself up for failure. If you’re up to your eyeballs in debt and keep using your credit cards, nothing will change. I’m a strong believer that if you change your mind about your finances, you’ll change your financial status. What does all this mean?
It means that if you’re really committed to getting out of debt once and for all, you’re going to have to change your money habits - specifically, how you spend and save. So many people find any excuse to spend money to numb any pain they may be feeling in their lives. Relationship splits, job losses, whatever situation has brought stress and anxiety can also bring the “urge to splurge”, unfortunately to your own detriment.
So it’s one thing for me to say this is how it is…what’s the solution?

1. Fess up to the fact that there’s NO quick fix. Getting out of debt will take time and require that you exercise patience, discipline, sacrifice and commitment!
2. Understanding that doing the same things and expecting different results is the definition of insanity - look at what negative habits around money you have that need to change? Better question…are you WILLING do do things differently?
3. Face reality. What I mean by this is it’s imperative that you tell the truth about exactly how much debt you have to pay off. It’s easy to want to be vague - when you’re specific and clear, you’ll see the exact numbers on what you owe and it may not make you feel great. Believe me though, once you get a handle on exactly where you’re at, you’ll feel a sense of empowerment like you never have before!
4. Make a plan and Work that plan! Once you’ve decided that you’re ready and willing to make some positive changes and you’ve listed exactly everything you owe and all the money you have coming in, you’re ready to make anaction plan for getting out of debt. Restructure your life to minimize the triggers that cause you to spend money unecessarily and pick a buddy who’ll support your goal of being debt free.
5. The best way to lose weight is to go on a diet or a sensible eating plan. It’s no different for getting out of debt. When you’ve made up your mind to go on a debt free diet, you’re going to have to track every dollar you spend so it can go towards every dollar of debt you owe. Once you see your debt go down, you’ll be invigorated to keep the momentum going.

I’m going to focus several articles specificallyl on Saving, Budgeting and Controlling Spending. I”m bound and determined to help anyone who’ll listen get out of debt once and for all.

Talk to you soon,

Dee Dee Sung
Founder, Debt Free Divas, Inc.
From Self Worth to Net Worth
www.debtfreediva.com

Being deep in debt seems to have all too many people chained to jobs they don’t want to be at. This is a question from one of my readers in that situation.

Q. I’m currently at a crossroad in my life. I have a full time job that I’m not happy at and I feel like I don’t have enough time to spend with my family. The problem is that I don’t see a way out as I have a lot of debt that needs to be paid off. I’d like to create an internet business for myself that will allow me to have more time with my family, help pay off my debts and create more financial freedom in my life. How can I create more confidence to be able to do this?

A. This is a challenge that seems to be on the minds of many. I have been asked this question numerous times by people who are either facing downsizing in their current position or simply wanting to create an additional source of income. The first and most important step is to get clear on your current financial situation so that you can develop an action plan. Often, when you feel “stuck” and unable to see the forest through the trees, it’s easy to lose perspective on what’s real. In order to gain clarity, you will need to list not only your total debts owing but the money you’ve got coming in as well as going out each month. This will allow you to see your numbers in black and white so you can determine if there’s any room to restructure your current financial situation. It’s when we don’t write the numbers down that it’s easy to get vague about how much money we actually have or don’t have available to us. With regards to your debts, if you haven’t already, you will need to put a debt elimination plan in place. Depending on the amount of debt you’re carrying and whether you are behind in payments, there are a number of debt relief options to consider. These include debt consolidation loans (mortgage refinance, home equity line of credit or unsecured personal loan), consumer credit counseling and debt settlement. If you are experiencing difficulty in staying current with your debt repayments, you can research these options to see which one would be the best fit.
With regards to starting an internet business, you need to ask yourself the following questions:
• What interest or hobby do I want to turn into a business?
• What kind of need is there for the product or service I want to offer?
• What are my skills for starting such a business?
• Who do I know that can help me launch this business?
• How much will it cost me to start and run this internet business?
• How much additional income do I think I can generate?
• Will this provide me with the freedom to spend more time with my family?

As you can well imagine, starting a new business will consume your time, energy and resources, especially up front. However, the rewards can be many and if it will allow you to spend more quality time with your family and allow you to perhaps enjoy your current job more, it may well be worth your efforts!

DON’T let the buden of overwhelming debt keep you from doing what you want to do in life - it’s just not worth it. If you have debt you know you need and want to get rid of, it’s time to look at your options on how to get this done. Go to www.debtreliefoptions .com to find out what’s available to you.

Be sure to email me your questions on getting out of debt and building great credit at coach@debtfreediva.com

Knowledge is power and it’s important that you have all the facts so you can make educated decisions around your finances!

Dee Dee Sung
Founder, Debt Free Divas, Inc.
From Self Worth to Net Worth
www.debtfreediva.com

coach@debtfreediva.com

One of my Debt Free Divas community members just sent this question in about her finances - hope you find it helpful!

Q. I’m determined to get my finances on track this year and would welcome a few pointers on where to start. There’s so much information out there that it becomes confusing. I’m tired of feeling like my debts are overwhelming and I have no money available at the end of each month. What’s bothering me the most is that I don’t really know where my money’s going.

A. Congratulations on your commitment to get your finances in order! The cynics believe that New Year’s resolutions are meant to be broken but it doesn’t have to be that way. The truth is that it’s important to have a plan of action in place that’s simple and easy to follow. Remember, it’s the baby steps that lead to giant results. Okay, let’s talk about these 5 STEPS to a financially healthy new year!

• Set realistic goals – unattainable goals are a surefire way to set you up for failure. I emphasize the word “realistic” as you will build your confidence when you start to see positive results.
• Track your spending – this may seem tedious but it’s the only way you’ll be able to see where you precious dollars are really going. Many people like to remain vague so they don’t have to confess to the miscellaneous expenditures that are eating up their hard earned cash and preventing them from reaching their goals and dreams.
• Envelop system for budgeting – this is all about getting back to basics. Create an envelope for every category within your budget and when you receive your paycheck, allocate a percentage into each category. Generations before us successfully used this system and, in my opinion, it’s still one of the most powerful ways to create and stick to a budget. Believe me, it’s empowering to know where your money’s being spent and it will allow you to make necessary adjustments over time. More so, once the cash in a particular envelope has been depleted, you know you’ve hit your spending limit. As they say, proof is in the pudding!
• Progress not perfection – it’s all too tempting to set lofty, unattainable goals. Unfortunately, that usually results in taking your commitment to that goal from excitment to overwhelm and defeat. I like to remind people that any journey is more about making progress versus striving for perfection. You will find that focusing on progress will take a lot of pressure off of the task at hand. It’s also important that you have some fun and be willing to laugh as you learn!
• Save before you spend – consistently allocating a portion from each paycheck into a savings account (no matter how small the amount) will go a long way to build your money confidence and give you a sense of freedom. Usually, the #1 excuse for not doing this is that there isn’t enough money from each paycheck to save. This is where the envelope and tracking systems come into play as they will both allow you to determine where you’re spending your money that you could cut back on. It doesn’t matter what amount you start with - $25, $50 per month – what matters most is that you start. As you see your savings account balance start to grow, you’ll be inspired to find ways to free up more cash to save.

Embarking on these steps requires you to make a commitment to yourself. You might also consider finding a friend who wants to take these steps with you. The best way to creating a healthy relationship with money is to connect with other like minded people who are on the same journey. Although there will be discomfort along the way, believe me, the rewards will be many!

For answers to your questions about credit, debt elimination methods and smart money management - please email me at coach@debtfreediva.com

Happy 2006!

Dee Dee Sung
Founder, Debt Free Divas, Inc.
From Self Worth to Net Worth
www.debtfreediva.com
coach@debtfreediva.com

This quesiton came in from a reader who was out of control with gambling. Whether you’re a shopaholic, a gambler or prone to excessiveness, it’s important to nip the problem in the bud before it gets out of control. It’s just not worth ruining your credit and going deep into debt over…

Q: When the casinos first opened in my city I would occasionally drop in and spend $20 or $40 in the slot machines. My visits became more and more frequent and the dollar amount per trip larger and larger. At first I justified it by saying that it was how I chose to spend my entertainment money. But I’m spending more than I should, put off paying bills and started carrying a credit card balance for the first time in years. The other day I caught myself considering a credit card cash advance to get gambling money until my next payday. I make an above average salary but I’m frittering it all away on the slots. Help!
…continue reading the article titled Get a grip on gambling before it ruins your credit and gets you deep in debt!