Let’s face it. Many of us have been living on a superficial income and the economy has allowed us to extend ourselves beyond our means.

At the end of 2008, American’s credit card debt reached $972.72 billion, including both general purpose credit cards and private label credit cards not owned by a bank and the average credit card debt per household, regardless of whether or not they have a credit card was $8,329. (Nilson Report, April 2009 from CreditCards.com statistics.)

Take control of your finances. Less can be better – living within your means – no debt interest – less stress – touching down with basic values.

Reduce Expenditures: It may be easier than you think.

• Make a budget for the coming six months and stick to it. This will help you to reduce spending and oblige you to reassess your lifestyle.
• Think creatively to reduce expenditures. Organize a swap session to exchange clothing and sports equipment. Invite your date for a picnic at sunset. Walk or bicycle shorter distances. You may very well find that you become a less stressed, happier, healthier you!
• Remember that you are never too young or too old to control your expenses. Begin now!

A recession touches all of us. Meet it with confidence and age-esteem. It’s an ideal opportunity to join forces with others of all generations to buy in bulk, share equipment and give mutual support.

Bonnie Personal Finance economy, opportunities, recession

A trait that smart people have in common is that they know that they don’t know everything; nor do they pretend to be experts where they are not. You will note that successful people seek professional guidance from people who do have the expertise that they need in a particular situation. This is also true in a recession.

We sometimes think that it is too expensive. It will cost to much. Think how much more it might cost you if you do not get expert help. Too often people assume that a younger expert doesn’t know what she’s talking about because of lack of experience or an older expert is out of touch. Let your age-esteem focus on the expertise rather than age.

Seek Professional Guidance: Be smart. Seek professional expertise to minimize the risk surrounding your fears, to begin to reduce or eradicate any debt, and to create a plan for your future financial health. Many services are available at little or no expense. Check with your local Chamber of Commerce or United Way office. You will also find possibilities on the web under free financial guidance.

Educate Yourself: A good complement to follow up on your work with a professional is to find ways to educate yourself on financial matters. There are courses offered at your local university, on-line, and through television as well as books. Discover what is offered in your community.

Be smart. Seek professional guidance and learn to take control of your own financial health in the future.

Bonnie Personal Finance economy, opportunities, recession

During a recession it is normal to have concerns. It is even healthy. But to worry is counter productive. Worry is emotional and drains energy. Age-esteemers are concerned. Concern is intellectual and leads to solutions. Concern removes itself from your emotions so you can deal directly with the facts.

Financial fears often surface and take over your thoughts during a recession. Take control of these financial fears. Deal with them objectively.

Identify your financial fears:

• Write down what scares you about your present situation and why.
• Be very honest with yourself.
• Ask yourself, “What is the worst that could happen if this financial fear were to become reality?” Often the worst is not as bad as we think. The act of looking seriously at the answer already helps to put the fear into perspective.
• Now ask yourself, “What can I do to reduce the risk of this happening?” Begin acting on this immediately.
• Begin to prepare a plan of action with an alternative action plan if the worst should happen.

Take this exercise seriously and begin to act on reducing your risks objectively.
Prepare your plan of action for the worst case scenario. By identifying your financial fears and taking action, you will conquer those fears.

Bonnie Personal Finance economy, opportunities, recession

A recession is not the end of the world. In fact it’s a normal fluctuation in the business cycle which has peak periods and low periods. But this one touches people we know. Let’s face it, it touches you and me! The good news is that we can do something about it.

Know your finances: Knowledge is power. Have you been relaxed about keeping track of what your assets are worth and how much you spend? Find out exactly what shape your finances are in. What do you have and what do you owe? If you haven’t already done so, do this now! Only when you know what your present situation is can you do something about it.

Have you been spending all that you earn? Have you been living beyond your income so you are carrying a heavy debt? Or have you put money aside each month to build a financial cushion? No matter how hard your pocketbook has been hit, decide that you will learn from this experience. This is a wake-up call for young and old.

Let’s listen to it and learn from it in order to prepare for the future.

Bonnie Personal Finance economy, opportunities, recession

Today, we begin a weekly series about the recession and what you can do to…

Yes, we are in a recession. It is not the first time nor will it be the last. But it is the first that even baby boomers have experienced or felt personally affected by such a downturn in the economy. Have no fear, this too shall pass.

Meanwhile there are steps that you can take to combat the recession blues. Let me share one of those steps with you here. Take particular note that it is free. It costs you nothing to use it. And it can spill over into other aspects of life.

Take control of your thoughts. Remember that you control what you think, what you say, and the decisions you make. No one can force you to think a particular way. You have to allow those thoughts into your mind. Your attitude will influence how you thrive or dive during the coming months. Recession? No Way!

Remind yourself by affirming out loud to yourself, “An economic recession is temporary. I will learn from it and thrive.” Your attitude will influence how you live each day, how you act and react to events. It will also influence the type of people who choose to associate with you and the opportunities that are drawn to you.

Bonnie Personal Finance economy, opportunities, recession