Turn Your Cash Flow Tide

Bills, bills and bills - sometimes they seem to never end. As soon as you get one paid, another comes due. And we all know the terrible feeling of running out of money before we run out of bills to pay. Feeling financial pressure is common; a 2007 study by the Australian government shows that nearly half of us feel "stressed" or even "overwhelmed" when we have to pay our bills. Fortunately, a few simple steps will help relieve the pressure you feel from paying your bills.

First, resist the temptation to ignore your finances. Take control of your bills instead of letting your bills control you. Make a list of them and note when they are due. This will give you some perspective and allow you to ask yourself some important questions, such as:

• Which bills are the most urgent? Make these bills a priority and ensure that nothing stops you from paying them straight away each month.
• Assign each bill to a specific payday. If you are paid every two weeks, figure out which bills will get paid on each paycheque. The safest thing to do is pay your bills first each payday before you have a chance to spend the money on other things.
• Are there unnecessary bills that you can cut? Are you really using that health club membership or those extra television channels? Have you bought things on credit that you don't really need? Maybe you could sell them and pay off the loan. The fewer bills to pay, the easier your life will be.
• Are you in over your head? Do you actually make enough money to pay your bills, or have you over-extended yourself? Hopefully, this is not the case, but good people sometimes find themselves in a bad situation. If this is true, you may wish to seek help, either by going directly to your creditors and asking for relief or by seeking professional help.

The next step you can take to relieve pressure off of your finances is to start saving money. Setting money aside can be a hard habit to learn, but it can be a lifesaver when something unforeseen happens - a tire blows out, an unexpected bill arrives, or the car needs new brakes. The best way to save money is to "pay yourself first" before any money is spent. Simply set aside a definite amount as soon as you are paid and then forget about it. It doesn't have to be a big chunk of cash, because even a small amount each month will accumulate and grow over time. The important thing is to begin the habit of saving something every month.

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