As the housing crisis worsens and the economy looks increasingly weak, most Americans are facing the reality that their finances are in a bit of a wreck. Chronic overspending, a lack of savings and too much bad debt has left many in a financial condition that they would prefer not to be in. Here are some top warning signs that your finances are in a wreck, and how to get out of the problem.

1. You spend more than you make.

It sounds overly simple, but many of us do not realize how much we spend in a month. Take the time to keep a log of how much you spend in one month and compare it to your salary. If the numbers are dangerously close, you’ve got a problem. Don’t forget to include your credit card purchases on there as well, since you will be paying for them.

Solution: Set a monthly budget that you can stick to. Add up the expenses that you can’t help, such as rent or utilities and then build from there. Try to free up as much money as you can. As we mentioned above, credit card spending should be included in this budget, even if you don’t have to pay for those items right away. By limiting how much you spend on your credit cards in this manner, you can start carving away at your debt. It is important to set a budget that is not too difficult to stick to. Allow yourself a little wiggle room, but make sure that you do come in well under what you make each month.

2. You are falling behind in your bills.

A couple days late here, a week there – after all, the phone company doesn’t really mind do they? If you are finding that you are trying to space out your bills to the point where you are chronically late on all of them, this is a sign that you have a major problem. Late payments really do matter, whether you realize it or not. Even phone companies report to the credit bureaus and you will not be doing your credit rating any favors.

Solution: Budgeting can help with this, but if you are finding that your paychecks are not syncing up with due date, it is important to do something about it. Most companies will allow you to change your due date to something that is more suitable for your paycheck schedule, but you will have to ask. This is a great solution if you have the money to pay the bill, but you just don’t have it on time.

These are two simple solutions that can bring a wrecked financial plan into better territory. However, it is vital to break that cycle of relying on your paycheck to meet all of your financial needs. Consider debt leverage to create more than one stream of income. This will free up your finances and chances are, you’ll sleep a lot better at night.

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One of the main problems facing Americans today is a lack of cash flow. As the economy gets worse and gas prices go up, it is getting harder to make ends meet. If you are completely reliant on your paycheck each month, the last few days or weeks of the month may be getting pretty tough. The best solution to solve this problem is to increase your cash flow. This will require a little bit of effort, but it can be very helpful. Here are some tips on how to increase your monthly cash flow.

1. Clean out your house.

Have a bunch of stuff sitting around your home that you don’t need anymore? Join the world’s biggest yard sale on Ebay and start getting rid of it. You’d be surprised at how much money you can make just getting rid of all of your old stuff. You never know when someone may want that old lamp, or even your old pair of shoes. Many people have found that turning to Ebay is a great solution, especially when they need extra cash in a hurry.

2. Start a side business.

Have a hobby that you’re really good at it? Turn it into a small side business. For example, if you are an excellent cook, think about opening a small catering business on weekends. Got a knack for making candles? Sell them in your local area. If you can do anything, chances are you could be doing it for money. Hit up your local flea or farmers markets and see how well you can do. The online world is also full of opportunities for small businesses. From selling ebooks to making your Ebay career shine with drop ship products, there are many different avenues that you can explore to increase your cash flow.

3. Consider making investments.

One of the best ways to get more cash coming in every month is by making strategic investments. Start small by depositing money into a high interest bearing savings account. If you don’t have money on hand to make an investment, considering leveraging some debt to help you start earning more money. This can pay off, especially if you make the right investments.

4. Consolidate your debts.

If you are striking out on all of these tips, you can free up a lot of cash each month by consolidating your debts. If you have a lot of credit cards, it is much easier to make one payment per month and a lot cheaper as well. Try getting a debt consolidation loan or if all else fails, transfer your high balance cards to one single card with a better rate. You can save quite a bit each month and that money can be used for investments or just to pay the bills.

Each one of these tips has the potential to increase your cash flow if you take them seriously. Everyone has a talent for making money, they just need to take the time to make it work.

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Whether we realize it or not, many of us face financial risks every single day. From the high powered investor, to the minimum wage earner, every one of us has the potential to lose everything we own. How can you evaluate your financial risks and find ways to secure your future? Let’s take a look!

First, it is important to figure out exactly how much you spend in a single month. Get a notebook and write down everything you spend over the space of one month. Include everything from the smallest item to the largest, and don’t forget to include your monthly bills as well. At the end of the month, total up everything you spent and compare it to how much you make.

If you are overspending or cutting it close, you are definitely at risk for financial ruin. If you have more than enough left over at the end of the month, your risks are quite a bit less, but they may still be there. One of the best ways to tell how close you are to the brink is to experience what it is like when your paycheck is a few days late. Do you panic? Do your bill collectors panic? If the answer is yes, you may be cutting things a little too close.

Not many of us realize how much we depend on our paychecks every month. We may think we’re doing ok, and we have plenty of stuff to make us comfortable. Few of us put aside anything and before we know it, we’re living paycheck to paycheck. Add in credit cards and you’ve got a recipe for disaster.

Now, let’s look at the other end of the spectrum. Let’s say you’re financially well off, you’ve got plenty of investments bringing in some pretty decent returns. You’ve come to rely on those returns and you’ve always got the back up of your 401k, right? Now, let’s say the market takes a nosedive, ala Black Monday or the dot com fallout. How well off would you be then?

No matter if you make $800 a month or $8000, diversity and multiple streams of income are the best answer to shoring up your defenses against financial ruin. Let’s face it, most of us would not turn down more income every month, especially if we didn’t have to work hard to get it.

By reducing your reliance on your paycheck, or your standard investments, you are increasing your chances of being able to withstand a finance shattering event, such as a market crash or the loss of a job. The more ways you have to make money, the less likely you are to fall into financial ruin.

One of the secrets that millionaires have is leveraging debt to create a new stream of income. For example, let’s say you take out a loan to use to buy an investment property that you rent out. This is now an income producing property and you’ve got more money coming in. As you pay off that loan, the profits keep rolling in, and you’re less reliant on your standard means of income. That is one powerful way to avoid financial ruin.

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I would like to thank LazyMan for tagging me with in his 6 word memoir: Money - freedom to do almost anything

By being tagged I need to write my own 6 word memoir….

Financial Freedom Equals Cashflow Leveraged Wealth

I think the statement says it all, but to expound a little… financial freedom is one of the most universal monetary goals of any individual, family, or corporation. The way to achieve financial freedom quickly and securely is through the use of leverage and cash flow management. Creating multiple diversified income streams of ever increasing cash flow using leverage of existing cash flow, assets, interpersonal network, and even debt.

And To Tag a few people to write there own 6 word memoir:

• brip blap
• Cash Money Life
• The Dough Roller
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• About

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Through the past few years, many of us have been conditioned to believe that being in debt is a bad thing. While it certainly may be true that debt is dangerous in the wrong hands, there are actually many ways that debt can be very effective and can actually help you get more money. This is referred to as leveraging your debt to increase your wealth. If this is a new concept for you, let’s go over a few points on why this method of personal finance can be so successful.

1. Using debt to build multiple income streams.

We would all like to make more money, but the old saying that it takes money to make money certainly applies. You can leverage your debt so that you can easily create numerous new streams of income that have the power to turn you into a millionaire. How does this work?

By using an investment into a new business, you’re diversifying and adding another income stream to your own personal income. Whether you’re using your debt to invest in the stock market or a completely new business opportunity, you can create as many new income streams as you can afford. As your bank balance grows, you can reinvest your earnings to continue creating more income streams. This is one of the primary ways that successful business owners continue to make so much money. These techniques are just as effective when used for personal finance.

2. There is such a thing as good debt.

Bad debt is something that no one wants to have. This means that you are in over your head and have no way to pay back your bills. Bad debt is also debt that is not working for you, but rather against you. Good debt is the money that you use to leverage to create more income streams. You can look at it like this:

Leveraged Debt = Powerful Investments

When you’re properly handling your debt, you’re leveraging it for your future. It may not happen overnight, but you’re building a strong foundation that you would otherwise not be able to build. Let’s face it, most of us are not independently wealthy and if we want to make money, we’re going to need money. For most of us, that does mean going into reasonable debt. The key is lot let your debt control you. It is a good idea to stop thinking of debt in the forms of credit cards and overspending.

Good debt is something far different. You’re not leveraging it to buy useless things, you’re leveraging it to insure your future. It all boils down into how you handle that debt. If you’re not careful and you overspend on things that are of no importance to your future, you’ve got bad debt. However, if you spend it wisely, investing in multiple income stream opportunities, you have got good debt that will pay off for you for years to come.

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• About

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