This is where your finance takes place

You might have too many things to do, too many problems to solve or simply a huge lack of sleep but in the end, you feel paralyze in front of your present situation. Nothing makes sense anymore and you are completely frozen. The idea of taking action is not even an option.

Anxiety is probably one of the worst feelings you can live as it has this power of disabling your creativity and capacity of taking action to solve your problems. However, if you learn how to manage your anxiety, you will be in a better position to manage your finance as well.

Stop and think

The problem with anxiety is that it follows you no matter where you go. You are eating with it, walking thinking of your problems and finally, you will dream about them. The key is to find a moment in your schedule where you will stop completely everything you do in order to concentrate on your anxiety.

Why am I feeling this way?

Once you have enough free time to think about your situation, start by asking yourself why you are feeling so bad. Then, use the “5 why’s technique”; every time that you find an answer, ask yourself again why this cause you so much problem. After you answered 5 times to the question, you should be able to understand fully your emotion and why you are feeling this way.

Solve the source of the problem

If you are starting a new job for example, you might feel very anxious about it. However, the reason of your anxiety might be very different from one person than another for the exact same situation. One might be nervous because he doesn’t know his new colleagues, another may be worried about the fact that he doesn’t know how the computer system works and there is a possibility that the person doesn’t even know if he wants the job or not.

So instead of thinking: “I’m nervous because I have a new job”, go deeper and find the real reason why you are feeling sick every morning when you get up.

By finding the root for your anxiety, it will become much easier to manage it and then, manage your personal finance. As most stress in a life is caused directly on indirectly by money, managing your anxiety is definitely the first step to manage your money!

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Example #1

In the same week, one of my friends had a car accident and lost her job. She had just finished school and had a ton of student loans to pay off, 2 months or rent overdue and a few bills here and there on her kitchen table. She was so depressed that she was ready to fall apart and cry her blood out.

We sat down together and we looked at her situation. We decided to solve one problem at a time. She first called her creditors in order to explain the situation and get arrangement with them. In order to pay off her debts, she decided to work two jobs during summer so she could clear up all her late payments. At the end of this summer, one job led her to meet her new boyfriend and the other job led her to get a good position in a company where she loves to work for.

Everything happened in a span of twelve months. It would have been easy to get depressed and let everything go. Instead, she dove into her own chaos to find the answers she was looking for. In the end, all the little pieces that didn’t seem to fit together were there to bring her to a better future.

Example #2

My friend and his girlfriend have two children and they have been living in an apartment for a while. They finally plied up enough money to buy a house a few years ago. He lost his job six month after he bought that house. At the same time, his car broke down and there was no way to get it start again. His girlfriend was on the verge of depression and stopped working for a few weeks.

Money was not coming in at all and he was already thinking of losing his truck and his house. Then, this is where he decided to apply everywhere in order to get a job as fast as possible. He finally find out a 3 months contract in the same field he used to work. While many people thought that they would have to restart the whole circus of finding a job only three months after, he decided to start working and hope for the best.

This contract led him to a promotion where he now makes more than he used to be with better work condition. In addition to that, he received a settlement from his previous job that allowed him and his girlfriend to buy a new car and reduce their payment by refinancing both car loans. Today, he is still living in his house with his family

So I hope that these two examples inspired you and convinced you that no matter what kind of mud you are into, there is always a way to come out of it cleaner ;-D

image source: pcmedia.gamespy.com

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The main premise of the Financial Chaos Theory is that you must have money problems. When you have bill coming from all over the place or if you have ten thousand projects to finance at the same time but not the wallet to go with it; you are in a financial chaos.

As you have too many things to follow-up on, you are not really aware of what is going on with your money. In fact, the Financial Chaos Theory doesn’t only apply when you have too many debts, but really at any point in time where you feel that you are losing control of your finance. It could be related to bad or good events. If you win 1M$ tomorrow morning for example, you might not know where to start to spend it! This is also a money problem!

While people see the chaos as the worst thing that can ever happen to an individual, I see it as the perfect opportunity to make good changes. As your money is out of control, this gives you the perfect excuse to establish a clear financial strategy in order to get back on the right track.

You simply have to pick up one problem at a time and solve it. By putting all your energy on a single issue, you will become more efficient and creative. This will allow you to clear this problem out of your way for good. As the rest of your finance is a total bordello, it doesn’t matter if you take care of them or not; the result will be the same. However, once you have solved a few issues, you will get a clearer picture of your financial situation and you will be able to setup a real plan.

The fuel behind this theory is motivation. When everything goes wrong, your level of motivation along with the urgency of taking action should reach its peak. Once you have reach this peak, you select one problem and you hit it with a baseball bat. Your money problems should get solved one after the other.

In one line, the Financial Chaos Theory explains why the perfect moment to clear up your finance is when you are at the bottom of the barrel. However, I do not suggest that you purposely mess up your finance in order to design a proper plan. It is more to encourage the one who feels left alone and lost in the abyss of financial debts. For those, I would tell you that you are in the best position to get better!

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