Page 43 - Book1E

What should you do?
When you carry cash, you run the risk of experiencing “evaporat- ing funds.” The truth is, when you carry cash, it tends to disappear. To stem this phenomenon, start recording what you spend and the reason you spent it. Do it just for one day. The best way to get started is to focus on what’s happening right now. After you record your expenditures for one day, see if you can do it for a week and then two weeks. Educating yourself about where your money is going will become a powerful tool to help you determine where you can begin to make changes.
Inability to Handle Emergencies
Murphy’s Law says, “If anything can go wrong, it will.” The Boy Scouts tell us, “Be prepared,” and we’ve all heard we should “Save for a rainy day.” This is all good advice. The credit card that was originally meant for emergencies can prove to be too big a tempta- tion. Little purchases here and there made with the intention of paying them off at the end of the month end up remaining on the card and soon there’s no room left to handle a real emergency.
What should you do?
Plan for emergencies. Try to avoid unnecessary purchases of small daily items. Even small deposits in savings can help you avoid borrowing for emergencies. Put the amount of the fee you might pay on a payday loan in your savings account instead. Make that emergency card one with a very low limit—say $500. With such a small amount available for emergencies, you may find it makes you think twice before using it for other purchases
Borrowing from Friends and Family
Borrowing from those whom you love and who trust you is a sure sign of financial trouble. It can start out quite innocently. You don’t
Poor Cash Flow
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