It seems like everywhere we turn we are hearing about more layoffs and foreclosures. The ripple effect that the housing market is having on the overall economy has been extraordinary. What does this mean for you and your finances? When it comes to real-estate a lot of things have changed. One of the main differences is that banks are a lot more conservative with the money that they lend out. What this mean to you is it may be harder to get a loan. You may be required to put at least 10 percent down and have an excellent credit score before banks will lend to you. A few years ago all you had to do was have a heartbeat and you could pretty much get the type of loan you want. Credit is harder to come by and this is one of the major reasons the real estate market has slow down. I believe it could take years before real estate prices return to their previous levels.
Yes, the economy is not so good at the moment but we should not use this as an excuse not to succeed with our personal finances. We must accept that the economy is not at its peak but that does not mean that we cannot thrive with our own personal economy. What it does mean is that you may need to be creative with your income. Focusing on one or two streams of income is not good enough anymore, it is time to have multiple streams of income. If one stream goes away you are still on track to accomplishing our financial goals because of the other streams you have in place. The plan of action should be to accept that the US economy is not doing so well but do not use this as an excuse and begin the process of finding multiple streams of income!

Two people come into the program (we’ll call them Joe and Tom). Both are extremely excited to be a huge success and change their financial lives forever. Joe is very strict with himself; he stops traveling and stops eating out. Joe was going golfing with his friends but he cut that back as well, he cut back on everything. The first month that he was in the program it was hard but he was determined to make it work. He stuck with it and made it to the second month. Joe started to make comments to his wife like he felt like the program was too restrictive. It was only a matter of time before Joe decided that he did not want to live that way. Not only did he go back to his old ways but he was worse off then when he had started down the path to financial freedom.
Tom on the other hand understood that you need to allow for balance if you want to have a chance of sticking with the program over the long term. He did not cut eating out completely out of the budget but he cut it down to once a week instead of everyday. He also found a balance to have fun, and to do a little traveling while he was on his way towards his financial. With each debt that he paid off he would go do something fun to celebrate his victory over his finances.
Unlike Joe, Tom found a balance in his financial life. He did not feel restricted he had fun with the program and made sure that he celebrated his victories. Find a balance that works for you and your finances and make sure that you are not feeling restricted. By doing this you set yourself up for long term success.

This week's tip is on how to avoid the stress that comes with difficult economic times.