Charge It 1/12/2005 If you are among those feeling the strain of money problems, now is the time to take stock of your situation. It's always better to work on financial problems before they become unmanageable. Develop a plan and build the self-discipline required to keep out of financial trouble. We get into financial binds for three primary reasons: First - Our rising expectations. As income increases, we want more and expect more for ourselves. Second - Impulse buying. Too often, we are attracted to making purchases on the basis of �wants� instead of �needs.� Third - Excessive levels of indebtedness. They are caused by relying too much on �plastic� financing. With easy access to credit cards, we fall into the �buy now, pay later� credit trap. Those patterns can cause us to drift into debt so deep that it may take years to recover. Worry, anxiety and tension mount as the �past due� notices increase. Anger and fear take over when bill collectors begin their harassments. Family relationships and performance on the job suffer. To improve your financial outlook: Develop A Household Budget - Make a list of your daily living requirements and then shop only for the items you have listed. Also, record your monthly obligations so you know where you stand in terms of funds available for living expenses during the month. Monitor Your Spending Patterns - Your expenses must not exceed your monthly take-home pay. If they do, find ways to cut back. For example, make fewer long distance phone calls, avoid impulse shopping and take your lunch to work instead of eating out. Compare prices and use coupons to save money on items that you would buy anyway. Shop Wisely - Buy what you need, not what you want. You may want a new set of clothing, but if your budget won't allow it, consider waiting until more funds are available. Even then, shop wisely by waiting for the right sale or close out prices. Limit Your Credit Card Use - Whenever possible, pay your balance in full each month. Any balance carried forward may cost you more than you saved due to interest charges.