What Smart People Do When They Have Money Problems

By on January 29, 2014

smart financesNot everyone will have money problems in their life.

After all, there are still people out there who live off of many generations of family money and don’t have to worry about it.

But, for the rest of us, chances are that you will have a hard time or two in your life, no matter how smart you are.

So, the goal is be prepared for when these things happen, learn from your mistakes, and handle them the way a smart person would. Here is an example of a few scenarios:

1. You Can’t Pay Your Mortgage

For whatever reason, let’s say you can’t make your mortgage payment this month. Whether it’s financial strains, losing your job, or having to pay for some large house repair, basically things are not going well.

A smart person would call the mortgage company and let them know the situation. If it’s a first time offense, chances are they will be willing to work with you. You might have to ask if you can delay the payment for a few days while you hustle and earn some money. Then, you would take it upon yourself to go on a very strict budget the next month to ensure it doesn’t happen again.

What you shouldn’t do is ignore the bill or go to a payday loan type place. The responsible and smart thing to do is to make the call, own up to the mistake, and work with your lender to try to figure it out.

2. You Are Deep in Credit Card Debt

Just because someone is smart doesn’t necessarily mean they won’t make financial mistakes. I know lots of intelligent people who found themselves in tens of thousands of dollars in credit card debt for a variety of reasons.

A smart person, though, would recognize the problem and take the time to develop the skills to manage their money better. Learning how to budget is simply like anything else in life. It takes time and trial and error to get it just right. A smart person would also cut many of their expenses, downsize their home or their car, and basically do anything they could to get out of credit card debt and stay out.

What they wouldn’t do is pretend like the balances weren’t there and just let the cards sit and accrue interest month after month. If you are struggling with this, take action. You are definitely not alone!

3. You Have No Idea How To Budget

You’ve been hearing people talk about budgets, but maybe you just don’t have the time. After all, don’t budgets mean that you have to track expenses and say no to awesome purchases? It doesn’t sound like much fun, does it? Still, a smart person would recognize that budgets are exactly what you need in order to make fun purchases. Budgets don’t have to stifle you. They are just merely a tool to let you know how you’re doing from month to month.

So, the big question is: Are are you a smart person when it comes to handling money mistakes or not?

Photo Credit: The UFM

About Catherine Alford

Catherine Alford is a personal finance writer who received a B.A. from The College of William and Mary and an M.A. from Virginia Tech. When she is not writing for other websites on all topics frugal and fabulous, she enjoys sharing her adventures on her blog, www.BudgetBlonde.com. Follow her on Twitter @BudgetBlonde or like Budget Blonde on Facebook.

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