Rescue Capital Blog Your Money, Your Way

Resolutions aren’t solutions for financial problems

How lifestyle changes can improve your bottom line

Another year comes to an end and many of you are starting to think about 2012. Perhaps you may try to come up with resolutions like getting out of debt, quitting smoking or losing weight. Every year approximately 45% of American adults will make 1 or more resolution. However within 6 months almost half of those resolutions were abandoned.

There are many reasons why these resolutions fail including unrealistic goals, not having a plan in place goals that are too broad and no accountability. According to some experts, resolutions are about taking something away, leaving a person feeling deprived. By accentuating the positive you change the whole mindset. Instead of making a resolution, make a commitment to change in the New Year.

Whether it is looking better, feeling better or breaking the cycle of debt you need to look at what are the underlying cause of the problem and address it first. By breaking habits such as shopping when you are depressed, not taking account small daily purchases and stop impulsive spending you will be headed in the right direction.

Another issue is that consumers are often too optimistic about potential earnings. For example, relying on a tax refund, future raises or selling future annuity payments to pay for items later can be dangerous to your finances. If you do not get the amount of money you need to pay off your purchases you leave yourself open to huge interest rates or penalties.

So maybe you decided you want to make a change but you’re not sure how to get started. The best way to start is to define what you want to accomplish and make a plan. Make sure you develop obtainable, measurable goals and develop rewards for when you accomplish your goals. Below are some suggestions on how to get started.

1. Define your financial goal. Whether it is to become debt free by 2013, create an emergency fund or go back to school put it in writing.
2. Determine what is holding you back from accomplishing those goals. Is your spending getting in the way of your dreams, perhaps you are not sure.
3. Create a spending diary to see where your money is going. Track every purchase you make no matter how small it is. Identify places you can make small changes that can really add up.
4. Create a budget and stick to it. Don’t forget to save money too. It will help you avoid the debt roller coaster when emergencies happen.
5. Reward yourself. Give yourself little treats that won’t derail you when you hit milestones.
6. Don’t let setbacks derail you. If you have a setback, don’t quit trying to obtain your goal. Just regroup and move on.
7. Change your relationship with money. Avoid triggers like shopping your way out of a better mood and spending mindlessly by developing better habits such as exercising when you’re depressed or leaving your credit cards at home.
8. Get organized. Late fees and penalties waste money and they are damaging to your credit score. Develop a system that works for you and pay your bills on time.
9. Get professional help. Sometimes you are in over your head. Perhaps you need professional credit counseling or financial advisors who can help you develop a system that works for you.
10. Keep your options open. Sometimes your financial situation requires a more drastic approach such as selling some of your future annuity payments to avoid foreclosure or to pay off high interest debt. Remember to research all your options and don’t make hasty decisions.

If you have periodic payments from a structured settlement annuity, a divorce settlement, a single premium immediate annuity, life insurance policy, inheritance, royalties, or even a pension and you want to know more about selling some your future payments, call Rescue Capital at 866.688.3532. With today’s lower rates, your future payments could be worth more than ever before.