Steps to Financial Survival

The current condition of the United Sates of America is very interesting; and although challenging situations exist, there is a sense of rejuvenation for many citizens. What has created this rejuvenation? Is it a feeling newness? A sense of a different direction? Feeling as if what once seemed impossible in your life is now possible? As I have considered my personal feeling of rejuvenation, it has contributed to the ways I continue to challenge myself. It is greatly important to support the president elect of the United States, Barack Obama, as this is "our" country as a whole. Yet, it is equally important to focus on what we will do as individuals to promote the social welfare (societal well-being) of this country.

As the federal government experiences transitions in the presidency, Senate, and House, it is critical that we, as citizens, engage in transitions as well. The issue of finances has taken the spotlight in the media over the past few months due to the impact on significant financial institutions and the trickle down effects on certain populations. Yet, there are thousands of people in this country who have been identified as "poor" or of a "low-socioeconomic status" for years that have lacked this level of attention. As I reflect on the period of The Great Depression, which was viewed as an equalizer where people of low, middle, and upper socioeconomic statuses were now experiencing the same challenge, it seems another period of equalization may be occurring. The stigma of blame for poverty being placed on the individual had decreased during The Great Depression. Why? There was the realization that such circumstances are not solely due to individual causes but there are also societal and environmental influences. Yet, it is important to seek ways to guard ourselves to the best of our ability in preparation for times of challenge. Therefore, the following include a few ideas of how to monitor our finances.

1. Maintain a Financial Journal

This is a step that I have taken over the past few months to record my spending in order to recognize any patterns that could be adjusted. In addition, this has allowed me to recognize how much I have been spending on luxuries in comparison to necessities. This awareness has allowed me to adjust my spending, learn how to say "no" to myself when wanting to make a "spur of the moment" purchase, and also engage in comparison shopping regarding services such as internet and phone providers, groceries, and gas stations.

2. Review the Budget Bi-Monthly

Within my financial journal, I have maintained a "What's the Plan?" page where I review my previous budget and write an updated version. The updated version accounts for issues such as changes in gas prices, reduced debt payments, and changes I may have made in regards to service providers (i.e. internet). Once again, this provides me a visual of my spending patterns and possible areas of progress and financial issues that may still need to be addressed.

3. Carry Cash or Debit

Currently, I only use either cash or debit to decrease any level of dependency I may have on credit cards. Certainly, I may use a credit card only in case of an emergency, but I maintain the goal of paying of the balance immediately (even prior to receiving the bill). In order to make a transition from credit card use, it is important to make the monthly payment, increase the use of cash or debit, and begin to develop a savings "cushion" that will be handy in case of emergencies.

In conclusion, all of our financial situations vary yet it is important to explore what steps can be taken to gain progress. In addition, increasing our knowledge level regarding financial institutions, ways to save, and the affects of credit cards and certain types of mortgages is beneficial. As recommended by a friend, I viewed the movie "Maxed Out" several months ago and was highly motivated to restructure my spending and how I handled my finances. Therefore, I hope the thoughts I have shared with you may steer you to the road of improved finances during this period of economic challenge. In addition, continue to give thought to your individual responsibility as the United States transitions under the leadership of President Elect Obama.