At the same time recall the successes you have had to date. This process called affirmations is an excellent way to change your behaviour.
The program's aim is to change your behaviour from having unconscious attitude to spending money to one where you are fully aware of all transactions that you undertake.
The next step in the process is the use of the cash diary. The cash diary as outlined in the handling debt subsection is a great tool to allow you to monitor your spending. And by having to write every cent down it acts as a great review mechanism. It may mean you have to think about your spending a number of times a day. Have a read of the cash diary subsection now but there is one difference for you. In that section you are asked not to change your spending habits for the week/month. For you there is much more urgency and therefore more restraint on your behalf is required. After all remember:
Well, how do you feel about the cash diary now? You might be asking how long do I have to do this for and do I have to carry around a clip board with my cash diary in it all the time. For some of you the recording of your spending may last a couple of years while others just a few months with a review period for a month every now and again.
The best way to handle this is to carry a small notepad that can fit in a pocket and record the transactions when they happen and then record them into the cash diary when you get home. Do not get in the habit of just waiting till you get home to record the transactions. The process of writing down as you spend acts to make you more money aware and sometimes may act as a deterrent in the store.
The next step is to review what your financial position is like. Maybe it is better than you think? Maybe not but it will be better for you to work through the problem if you know what the problem is. Makes sense!
The best way to do this is to have a read of our personal balance sheet subsection in the where are you now section. There is an example balance sheet. To fill one out go to the spreadsheets menu from the home page and fill out your own personal balance sheet. Remember to include all outstanding bills.
Print out a copy of this and keep it. A good idea is to complete it every 6 months and compare the improvements made. This can be a positive reinforcement when improvements are made.
You are probably starting to see a trend here with the:
- Daily affirmation
- Recording Cash Diary
- Personal Balance Sheet
All require some action on your behalf and these will over time help you to become more money conscious.
What's next you are probably thinking?
Yes it's the big one!
The credit card (snip, snip, snip)
As outlined in our money is easier to access subsection in the miscellaneous section. The ability to access our money and somebody else's money (credit card) is to easy today. To enable you to have a real crack at your debts is to remove the temptation. I know you are probably saying.
But..!
What about..!
What if..!
You'll manage just like everybody used to manage prior to ATM's, EFTPOS and Credit Cards. Take out of the Bank how much money you need to get by for the week and that is all you have to spend. There are still many people out there without credit cards and they manage fine. It may not be easy but to turn around your financial position will require a change of behaviour. This turnaround will be easier if the temptation to spend is reduced.
And while you are there, have a think of that debit card. If you are really struggling financially and are prone to hit the shops and maybe pubs & clubs, this may be your only choice. When you do go out carry a realistic amount of cash and when it is spent that is it! No more!
You will feel better the next day for having the willpower to carry it through.
Just for today, one day, do not incur any new debt.
Seeing as we are asking you to cut up your credit card and cancel it we may as well go through another task that scares most people 'A Budget'. Now there are a number of options. You can go the whole hog and list all expected expenses for the next year on a month by month basis or you can try another option. This other option which we call the automatic budget provides a simple budget that is easy to set up and monitor.
As in all these tools they are not standalone. The automatic budget works best when spending is monitored via a cash diary. The spending is also managed without a credit card or the use of a debit card in some cases. The key statement just for today, one day, do not incur any new debt combined with daily affirmations means the tools when combined are of greater value than used individually.
And remember:
Just for today, one day, do not incur any new debt.
You are now on your way, on a new journey towards greater financial freedom.
Summary
Be confident that you will overcome your financial difficulties
Just for today, one day, do not incur any new debt
Say your Affirmations daily
Change your behaviour
Use your Cash Diary
Personal Balance Sheet
Cut up those credit cards
