More people today are having financial problems for a variety of reasons.  No one seems to be immune.  It can happen to us, as well as anyone else.  I think each of us know someone who is experiencing some type of financial problem at this time.  For everyone, the bills continue to come in and the cost of living continues to go higher. What can be done to make it through these tough times and be prepared for future economic problems?

There are some major variables that affect all of us.

·   In the United States the federal government cannot seem to live within its means so the national debt continues to rise, and ultimately someone is going to have to pay for this.  States are having a hard time trying to balance their budgets.  Our government is in trouble.
·   People are losing jobs, often through no fault of their own.  One reason is because jobs are being sent overseas where labor is cheaper.  Unemployment is high and no one seems to have a good way to lower it anytime soon. 
·   Related to employment is higher education and job training. Unfortunately college costs have become unaffordable for many people so less people can get the education required for the types of jobs needed in a technologically advanced workplace.
·   People are trapped in homes with mortgage payments they can no longer afford.  This is one reason why foreclosures are on the rise.
·   More people have little or no medical insurance so when medical problems occur, people simply cannot pay the bills associated with them.
·   Credit is tight and banks seem to be lending money only to those with the best credit scores and thus people who  need  help the least.
·   Dreams of retirement are fading away as more people approach age 65 and realize they are not prepared for it.
·   Then there is always the possibility of illness and accidents. Either one can seriously affect employment and income, and thus family finances and the ability to pay bills.
·   If anyone has problems in paying bills and meeting expenses, it soon shows up on their credit reports.  Lower credit scores work against people by limiting the types of help which they can get.

Unfortunately these variables are not going to go away any time soon. They represent long-term challenges and problems.

Money does matter for each of us. It can do a lot of good and a lot of damage in one’s life. Lack of it can cause people to become depressed, frustrated, dishonest, angry, or even disobedient to the law. I have experienced financial strain, and it had an impact on me just like it does on others. How much of an impact and how long of an impact can vary with the individual, but money affects all of us. It affects our opportunities, our solutions to problems, and our ability t o get assistance when needed. It allows us to get more education and job training, live in a better  neighborhood, and have more free time. In essence, money can do not only some essential things for us, but provide the means for a better lifestyle too.

Now let’s consider some things we can do to financially get our lives in order and be better prepared for the future.

·   Do not presume that your job will last forever.  Your company can go out of business or ship jobs overseas or reduce its work force for a variety of reasons above and beyond your control.  Therefore continue to learn and upgrade job skills and keep an up-to-date resume.  Be prepared to sell yourself in the job market tomorrow.
·   Housing is only worth what you can sell it for.  It doesn’t matter what you paid for it or what appreciation you expected over the years.  Housing also takes time to sell, so if you need to get money out of your house for living expenses or move to a new area, the equity in your home may not be obtainable for months.
·   Prepare a reasonable family budget and live within it.  Control spending or do not spend more then you have to spend.
·   Have some emergency savings in your home, or in a bank, which you can utilize for unexpected events.
·   Avoid unnecessary and excessive debt.  This can work against you in times of unemployment or underemployment.  If you do not have the money to buy a lot of consumer goods with cash, then go without them until you can pay for them. This avoids running up large bills on credit cards.
·   Consider the next five years and then ten years. What needs will you and your family have, and how will you meet them? Will increased income be necessary, and if so, how will you obtain it?
·   Think about the retirement years and develop a plan for being prepared for them.  Consider some wise investments that will accumulate wealth  over the years. These investments should supplement things like company retirement plans and Social Security.
·   As you get older and your kids have left home, begin to scale back or downsize in your housing and number of cars and other major expenses. Doing this will help you to live reasonably well in your fifties and sixties, and yet have more money to spend in your seventies and eighties.

Other things could be added to this list, but it should demonstrate the types of things to consider and evaluate and act upon. Do not leave your finances today nor tomorrow to someone else or to circumstances beyond your control. Take charge now and be prepared for your own future.

Very few of us want to admit that we have financial problems or could develop them in the future.  We don’t like to be told that no one is going to pay our bills except ourselves.  It’s easier to hope that we can win the lottery, or the government will bail us out ,or the banks will forgive our loans, or family members will come to our rescue. In general, such things will not happen. We must be prepared to solve our own problems. Others can help us in various ways like providing advice and rendering service.  Family members like adult children may even allow us to live with them when we’re older. However they may be having problems of their own at that time.