To win in the race for financial freedom you must learn how to spend money wisely. Never spend more than you earn or else even if you work your butt’s off every day with extensive long overtime hours it will be worthless. We all know this but instinct kicks in when a new shoe is out in the market, or your favorite designer had just released her new collection, or when a new mobile phone introducing amazing features is out in the market, we forget this basic concept of saving.

 Here are some lists to remind you of why you spend more than your budget? Review them and check yourself, it is always good to have a recollection. This will often stop you from using your credit cards.

 1. The neighbors have it- Human by nature is never satisfied, it is a constant reason for living. It is what makes people work, move, and act. We psychologically want these needs satisfied. The problem is the more we get something, the more we want something. People have to keep an image of them to feel elated when around people; we don’t want our neighbors to think we cannot afford the same thing right? We have to create an image of success in other people’s mind or else they would think little of you and you don’t want that. So we tend to buy something for the show, but little do we know our neighbors are doing the same thing. Hush, hush and you pretend you don’t know this.

2. Pass up on reviewing your asset – What we don’t know won’t hurt us right? If we don’t look at our financial status, we would never know that we are seriously in debt, and when you don’t know that truth you just keep spending and spending and spending more. In the end you will end up into a ball of twine without even realizing how or when you ended up into so much trouble.

 3. Liquidating your money before receiving it – Yes, people have a tendency to plan ahead, this is good not unless you plan on spending something you don’t physically have yet. For example getting a deal for that dream car you have been salivating with, promising a down payment, to be paid with your bonus. Reminder “Bonus” as defined “is something given or paid in addition to what is usual or expected” which means it is something intangible until you actually receive it. It can be cut anytime by your boss. So don’t put too much hope into it.

 4. Curse of the Credit Cards –Unlike physical money, credit cards have a tendency to fool you into thinking that you are not really spending much. I mean no money is coming out of your pocket so you don’t worry. Until the bills actually arrive, then you realize you have again spend more than what is necessary.

 5. Effective Marketing- One of the main goals of a marketer is to create a scenario of transforming wants into needs. You may not want to get the latest diet pill but it does promise to make you lose 10 pounds for a week right, I mean Isn’t that marvelous without trickling a sweat? You may not want to get a new camera, but the ads say “no down payment, with 0% percent interest” won’t you just love to take a picture of your baby with your new DSLR? These are all effective marketing strategies that marketer had been pulling on us for ages and by the looks of it, it is really effective. They’re selling and were buying.

 6. More money, more fun – The more money we have the more we increase our spending habits this is okay if you can afford it; you deserve to spend your hard earned money. But what if we have less money, does this mean less fun? It’s hard to come by with so little, but wait are you sure you have so little? Cross reference yourself with other people. They can survive with just the basic needs, why can’t you? Less money can still be fun you know.

 7. You have suffered before – You work your way up into the ladder. You started poor almost begged for help to get yourself to good schooling and hard earned luck got you climbing the ladder and you tell yourself this time it will be all about me! This is a common reason why adults tend to spend a lot. They think they deserve more since they suffered more and sacrificed more before they got to where they are now. They forget that a ladder does not always lead you up; it can also lead you down.

 8. I’ve got the power – Money they say can buy power! Oh yes its true, but remember power is limitless, while your money depletes.

 9. Feel good – There’s no feeling better than getting your dream even if we can’t really afford just yet.

 10. Yes or No – Have you always been saying yes, instead of no. Think again, this can lead you to financial burden especially when your kid wants that new toy her classmate has, or your spouse wants those new shoes she just saw on TV and your friends keep bugging you for a night out on weekends. Do you really have to say yes to everything?

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Get to Know Loan Modification

A loan modification is a payment scheme that helps those who are falling behind the payment of their mortgage. This is a way for the banks to avoid foreclosures and bankruptcy because in as much as you don’t want your property foreclosed or for you not to file bankruptcy, your banks and lenders don’t want to drive you in that direction as well because it will hurt them financially too. This is the reason why such payment schemes are made. It basically reworks your home loan in such a way that you can afford monthly payments. Loan modification may not have an adverse effect on your credit however if you missed out on mortgage loan payments, it will definitely leave a bad credit record. Finding ways to stop foreclosure is a must do so that you can maintain a good credit record. Get to know your loan modification plans and see if it fits your needs.

Be prepared with a budget

One of the things that your lender will check when you applied for loan modification is your budget. This is how the lender will determine if you are worthy for approval on loan modification. Many are being denied for loan modification because the budget does not justify why you need to apply for one. Your goal here is to make your lenders understand your financial situation as you are their best resource for finding out why all of this is happening.

Be Honest

You can never get a good result when lying. This will be the biggest mistake you will ever make because lenders don’t want to deal with liars.  Presenting your case factually is a must because banks and lenders are not stupid to not realize that you are lying. Remember they will verify everything in your application and if proven wrong, you are blowing away your chances to be able to keep your home. Submit a complete and honest application and once they see how sincere you are that you need help, then they will be more than willing to assist you all the way.

Be open and discuss matters with your lender

If you can’t make a payment, be open about it and inform your lender right away. That way they can help you to find ways to be able to make payments. Running away form obligations and hiding from them or not responding to their letters is not a good idea. Credit is based on trust and that is one thing that you don’t want to lose with your lender.

Get a stable job

It is easier for you to qualify for home loan modification if you have a stable and steady income. The lender should also feel that you are able to afford lower monthly payments. When you apply for a voluntary loan modification, the principal is not reduced; making it harder to be out of debt.  So finding ways to qualify for home loan modifications is a priority as it will help you gain financial freedom.

Consider a short sale

This is one of the other options you have if you can’t even keep with a lower payment after a loan modification. Here, you are required to sell a dwelling for an amount that is less than the loan balance in which the lender will agree to accept a reduced pay off and let go of the rest.

JCC Alliance Network has a brand new program called HEAVEN, (Home Equity Acceleration Velociity enrichment) to help people that are “upside down” and late on their mortgage.

Attend one of our free webinars.