The Paycheck is losing its power these days and the Payday is not as welcomed as before. I remember those days when my colleagues and I would look forward to paydays for we always had a surplus and would boast on how much we would put in our savings. For many, those days have gone and consumers are looking for ways to pay all expenses and if possible build a savings account with their Paychecks.
The reasons for this are mainly:
a) Cost of living increase
b) Frozen salary levels and;
c) Poor financial management.
With the inevitable tax increases and inflation looming, we should focus on how we can ‘Live with Less Income’ as the power of the Pay check will be severely affected.
Individual households, employees, Banks and other businesses will all be severely impacted and it is now time to assess our financial needs and capabilities. I encourage all Banks to review the quality of their loan portfolios and request revised expense statements from their borrowers whose income levels will be affected resulting in their inability to repay loans.
Here are immediate steps to be taken in preparation for Living with Less $$$.
1. Create or revise your budget (click here to join and use our expense tracker for free)
2. Calculate your Debt Service Ratio using 35 40% as your limit
3. Review your loan and Insurance portfolios
4. Complete your personal financial statement
5. Obtain an independent opinion from a qualified Financial Advisor
LCMoneyPlan.com was designed to be the online resource that individuals would access for assistance during these challenging financial times. The site is now free for all personal members and I encourage the use of its tools and information to assist in achieving Financial Stability.