A Practical Solution to (Almost) All Your Money Problems

Written by joshua becker

https://www.guidevine.com/newsroom/5-solutions-biggest-financial-problems-families-face/

Go out in the world and work like money doesnt matter, sing as if no one is listening, love as if
you have never been hurt, and dance as if no one is watching. Victor Hugo.

Our Financial Discontent.

For most of my life, I have had money problems. In fact, I have always lived with a deep sense
of personal discontent concerning my use of money. This discontent (or unease) concerning my
finances came from two areas:

First, I have always been discontent with the amount of money I was spending. Ever since
graduating college in 1996, I have lived paycheck-to-paycheck never able to get ahead.
Despite ever-increasing paychecks, I was never able to build up any substantial savings. My
credit card bill seemed to mimic my pay stub. The money came in. The money went out. And as
I entered my 30s, this inability to build savings could no longer be blamed on an entry-level
income, it had to be blamed on me.

Second, I have always been discontent with where my money was being spent. I consider
myself spiritual one who cares about the invisible qualities of life more than the visible.
Unfortunately, my bank account never aligned with my stated beliefs. Nearly every spiritual
leader of every major religion preaches generosity, contentment, and care for the disadvantaged
in society. Yet, my financial gifts to those in need were few and far between. I had a desire to
help the poor, care for the orphan, and comfort the widow, but I could never get behind those
intentions with my finances. It concerned me on a deep, spiritual level.

And in both regards, a solution was seemingly unavailable. That was, until Memorial Day 2008,
when my neighbor introduced me to minimalism and intentionally living with less.

As a result of our short conversation, the solution to my financial discontent became

surprisingly clear. It was simple and practical. It was Buy Less.

Our Solution: Buy Less.

Just to be clear, the resolution of buying less was not a new solution to me. I was not naive
enough to have never thought of it before. But the solution had never sounded attractive to
me. Buying less sounded like I was taking a step backwards in life admitting defeat unable
to earn the income necessary to live the American dream. It sounded boring unfashionable
and destined for ridicule.

But I was wrong.

Deciding to intentionally live with less is among the best decisions I have made in my life.
As a result of paring down most of our possessions and determining to only buy things
that are needed, we have found life greatly improved.

We have more time, energy, and money available to us than ever before we have more
opportunity to pursue the greatest passions in life we spend less time cleaning, organizing,
and repairing the stuff in our lives we have been forced to intentionally redefine our
values and rather than chasing every new product or fashion line sold at the department store,
we are finally able to invest into the things that make our lives worthwhile and significant.
In this simple solution of buying less, both avenues of financial discontent in our lives have
been resolved. Every month, we have money left over for savings. And every month, we have
more to give away.

For our financial discontent, the practical solution of buying less was perfect. Today, my only
regret is that I hadnt started sooner.

Other Financial Problems.

But what about other money problems? Would the mindful practice of intentionally buying less
solve them too? In most cases, it would. Consider some of these all-too-common money
problems and how their solution is found in simply buying less:

I am deep in debt. According to CNN, the average American household carries nearly $10,700
in credit-card debt. Buying less provides the opportunity to slowly begin repaying that debt. It
takes time. But patience, persistence, and discipline will absolutely free you from that crippling
burden. And if buying too much is the cause of the problem (in most cases), buying less is most
certainly the solution.

I dont make enough money. While there are some legitimate cases where income does not
provide for basic needs, more often than not, this money problem springs from an
internal desire to purchase luxuries that we believe will add joy to our life. Because our income
does not match our desires, we believe that we arent making enough money. But joy from
luxury is short-lived, fleeting, and can never satisfy. Your heart will always desire more and
your income will never match your thirst. Instead, an intentional decision to purposefully live
with less will provide the inner space to find contentment in your life and begin making the
most of it today.

Financial Pressure

Financial pressue is another big problem international students have to face, especially those
who do not get financial aids and have to pay tuitions and living expenses all by themselves.

Fee international students have to pay to the universities is pretty high, compared to local
students. Taking the tuition standard at UF as an example, international graduate students have
to pay $971.48 per credit hour while graduate students who are Florida residents only need to
pay $341.29 for each credit.

Moreover, as many internatinal students coming from developing countries, the exchange rate
between U.S. dollars and their domestic currencies could be high. A small amount of money to
an American can be significant to an international student, which also means that international
students have to cost a big fortune for study in the U.S., if they do not get any financial aid.

Also, international students are not eligible for loans unless they have a U.S. citizen or legal
permanent resident willing to co-sign for the loan or they got citizenship themselves.

Then, you would probably say why don't they find a part-time job when studying. In fact, unlike
U.S. citizens, international students with F-1 visas are with limited work permit on campus and
no more than 20 hours per week. Among the jobs available on campus, some are only available
to students of federal work-study program, which lead to even fewer job opportunities for the
foreign students. Restrictions on international students really leave them with few viable
options. Earning money while at school is difficult for international students.
Possible Solutions

Many international students choose to come to the U.S. due to the wide availability of
scholarship awards and financial aid for excellent students from all over the world regardless of
race, religion or gender. Although many international students get financial aid in the United
States, there are still limited amount of fundings to help international students with financial
problems.

Considering all the financial pressure international students have to bear, there are a variety of
potential solutions.

First, international students should consider possible financial problems and evaluate their
abilities to finance their education abroad when making their plans to attend universities in the
United States.

Second, it will be great if universities and the society could provide more scholarship and offer
a wider range of job opportunities for international students.

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Solution to common student problems

By Nathan Cabello (The Freeman) | Updated June 10, 2015 - 12:00am

http://www.philstar.com/cebu-lifestyle/2015/06/10/1464256/solution-common-student-
problems

CEBU, Philippines Going back to school after the abundant free time and fun of summer can
be a bit depressing for students. It puts them back to the same old routine. And students from
the lower middle-class homes - which comprise the great majority - have the added burden of
having to deal with the financial crunch once again.

Students need some money to get around things. And this is not even talking about tuition, and
board-and-lodging for out-of-towners. A simple photocopy of a page for a research project costs
money, and so do going to and from activities that some classes may require.

Youth being such an emotionally volatile phase of life, students are often easily thwarted by
relationship problems and challenging situations. Just a slight hump can cause them to meander
academically.

It might as well be a necessary part of a student's training to learn to hurdle the common
problems. The blog site blog.wallstreetsurvivor.com names the three most common problems
among students and suggests possible solutions to each:
The Problem: Financial Instability

Financial instability is the plague of perhaps every student's life. School means expenditure to
the regular student - whether in terms of time and effort or money. Students do not get paid in
attending school. And yet the classes require expensive textbooks and having a social life
doesn't come cheap, either. That's just the way it is. That's just life as a student, right? Wrong.

The Solution: Budgeting

Budgeting is a life skill, learned through practice and improved with experience. But like all
habits, one actually has to do it to get into the habit. Strictly abiding by budgets is not easy to do
- but it can be learned. Truth is, there is no such thing as "the sky is the limit" with students,
especially among those from financially average homes. Sadly, the bulk of money at the start of
the school term - money budgeted for the necessary things - dissipates quickly in the hands of
students coming back to school from a long vacation. So it helps to draw a budget and stick to
it. The budget should be realistic, taking into account all essential expenditures and projected
availability of money. By developing solid personal finance habits, the student gives himself an
advantage for life after college.

Financial Pressures for Graduate Students

Dr. Teresa Sullivan & Nick Repak

Graduate education is an investment that requires some financial sacrifice along the way. Even
students with generous funding often find that some expenses are not covered, and that their
general standard of living is not as high as they might like. Many gifted students fail to
accomplish their dreams because the reality of tuition, housing and living expenses keep them
from completing their degree. There are some clear reasons for the financial struggles and some
solutions to the problem.

Some Emotional & Cultural Issues

Denial and poor assessment can be a common trap for many of these idealistic scholars. Most
graduate students have experienced success academically since high school and throughout their
undergraduate program, and they assume that grad school is a calling for them. But esteem
issues become entwined with financial pressures for some. In interviews with Ph.D. students at
MIT, one student shared with me, I was the top in my undergrad chemistry department, but
now I am just one star among many. They may feel that they need to succeed to keep up with
personal and family expectations, regardless of the cost. They take out personal loans, charge
moving and living expenses to credit cards and then wonder how to make rent payments each
month. Other graduate students have a sense of entitlement that causes them to spend without
considering consequences. Certain students feel that graduate school is like a job where they are
earning their degree and should be drawing a paycheck for their labor. In one case study, a
graduate student continued to pay herself a salary with funds from government loans until she
had accumulated $160K in federally-insured debt. Yet, she was still taking classes and had not
even reached candidacy yet.

Economic difficulties may be so painful to think about that students engage in denial, making
budgeting and expense-tracking impossible. At some point, it is too late to get help through
traditional budgeting (even bankruptcy wont clear the federally backed student loans). Radical
cost-cutting, selling possessions and mortgaging property may be required to stop the financial
pressure. But we hear of students going on spending sprees, unwilling to acknowledge their
money problems. Spending is not always a rational action; spending money may be a way to
avoid painful feelings. For many, spending is an escapist reaction to debt and depression.
Externalizing Their Difficulties

Some graduate students try to blame others for their situation, and a spouse may become the
target for the blame. Divorce and bankruptcy are positively correlated, because money problems
are often closely related to marital problems. Others blame their parents or the university.
Graduate students may blame an advisor for failing to secure funding for the project for which a
student is doing research. Many want to justify their habits by saying, I cant handle a job or
Teaching Assistant position and excel in my academic program, so I need a Research Grant or
Fellowship to study without the distraction of working. The result is lingering of debt that goes
unpaid.

Sometimes, people use finances to compare their status with other classmates or siblings.
Graduate students may compare their situations with those of undergraduate classmates who
took jobs immediately after graduation and now have a comfortable lifestyle. In academic fields
where there are tight job markets, graduate students may never be assured of an income as high
as they would like. The results of such comparisons and resulting envy can produce anger and
resentment directed at others Yet we know that wealth and poverty are relative and not absolute.
Many students count themselves fortunate to struggle from paycheck to paycheck because they
are blessed with the opportunity to pursue research and study in a field that energizes them.

In the midst of a lagging economy and a volatile stock market, our culture has been prone to
hype consumerism. It has even become a patriotic duty to buy and spend. Graduate students are
not immune to this mentality.

The Beginnings

Financial struggles may begin before a person ever arrives on campus. The choices students
make in funding their degree can be the foundation for stability or the framework for financial
ruin. Graduate students can research the available options for funding long before they enroll.
Some fellowships are available through national competitions, with the resulting funds available
for study at any school. Other funds are provided by the schools themselves. Most campuses list
options on their website for grad school funding. There are opportunities for gift aid such as
institutional grants and scholarships that do not have to be repaid and self-help aid like
student loans that are need or non-need based.1 These sources typically describe the rules for
qualification for funds and ways in which the monies can be used. Current financial and
employment status will have a bearing on qualification for funding and the process and interest
on repayment.

There is a great diversity of funding options. Even employer savings plans may contribute to a
degree, or employers may fund the degree completely. Families have given funds for students
or loaned money with the intent of repayment. A large percentage of grad students are known as
returning grads who have been in the work place for years or may have military assistance to
add to their savings and school funds. Be aware that any choice will come with consequences.
One student expressed the pressure he felt when parents paid for the entire degree and expense;
The desire to please them (parents) with grades is an overwhelming expectation. Even free
can come with strings attached.

The Bottomless Pit: Debt

While student loans and some living expenses (house mortgage) seem to require the
accumulation of debt, many graduate students have made poor decisions on other costs
(transition to a new city, entertainment, etc) and have allowed credit card debt to pile up.
Comparison with peers, emotional escape through spending, or the deserving grad mindset may
put you and your family into a financial mess that makes recovery seem impossible. While it
didnt take long to get into debt trouble, it may require a long-term mentality to get out of it.
Debt reduction begins with a decision to change your lifestyle. According to Ron Blue in his
book, How to Get Out of Debt, there are four steps to get out of debt:

1. Determine where you are (some are unaware of their total debt amount).
2. Stop going into debt (perform plastic surgery on your credit cards).
3. Develop a repayment plan.
4. Establish accountability.

Further suggestions for reducing debt include selling assets, doubling payments to decrease
interest costs, reducing living expenses, reduce tax withholdings (a refund later may be better
used as part of your budget now), and possible credit counseling.2 These hints, along with a
renewed commitment to personal spending discipline can move you toward a financial
foundation from which you can begin planning for a more stable personal budget, without the
anxiety of personal debt.

How to Get Out of Financial Trouble

Review By:
ML
Michael R. Lewis
Entrepreneur & Retired Financial Advisor

Financial trouble can strike suddenly and can come from a variety of sources. Perhaps you lose
your job, suddenly find yourself in credit card debt, or lose it all on an investment gone wrong.
In any case, the most important thing you can do is stop and think to identify the problem and
plan a way out of it. By doing so, you can immediately get started on the path towards regaining
your financial security.

Determine the source of your troubles. This may be obvious if you've lost a job or lost money
from one particular mistake, but for some people the fact that they've been living beyond their
means and overspending may be harder to see. If you have suddenly found yourself unable to
pay your debts, look at your debt sources and your expenses and identify how you got into this
mess.

Make a list of your biggest financial problems. Remember that you do not need to fix
everything at once. Instead, try to prioritize the items on your list, such as paying off a
major source of debt or finding a job. The rest of your financial woes will be easier to
solve once the major ones are out of the way.
After you have identified and prioritized your financial problems, try setting a goal date
for solving each one.[1] For example, you might give yourself until the end of the month
to find a job or make it your goal to pay off your largest source of debt within two years.
If you are married or in a long-term relationship, then make sure that you involve your
spouse or partner in this process as well.

Develop a list of solutions. Now that you have prioritized your financial problems and set goal
dates for each one, you should also map out a plan for solving these problems. Identify concrete
steps that you can take to move closer to your goals and write them down.

For example, if your goal is to pay off a large credit card debt within two years, then you
will need to calculate how much to pay each month and be consistent with those
payments. You will also need to avoid using the credit card if the account is still open.
If your goal is to find a job, then you might list solutions such as search job postings
daily, submit 10 applications per week, or call after a week if you have not heard back.
Review your debts. One of the first things you can do to try to get out of debt is to contact your
debtors and make certain that you really owe the amount demanded. If you think that you owe
less, you can contact your creditor first and try to resolve the issue. If this doesn't work, you
may have to take legal action to get out of the debt.

However, if the issue is simply that you can't pay your debt, you can try to set up a new
payment schedule with your creditors. Odds are they prefer giving you more time to
repay your debt to potentially receiving nothing when you file for bankruptcy. So, call
them, explain your situation, and negotiate a new repayment schedule.

Where do I go for help if I'm in financial difficulty?

By David Malcolm

Friday 5 February 2016 Info and advice

If youre facing financial difficulties, seek help as soon as possible, because you can usually
solve problems more easily if you address them early. Here are the key sources of independent
advice for students in the UK.

Student advice centres

Almost all universities and colleges, as well as most larger students unions have some kind of
advice centre offering support and information about student finance. Advisors at these centres
have a lot of experience in dealing with students issues, and an expert understanding of the
system. They wont be judgemental, so dont worry about explaining your situation.

Often you can drop in for advice, or you can arrange an appointment. However, some centres
may be closed outside of term time. All centres have information leaflets and other resources,
and some also run workshops on budgeting and financial matters. NUS provides a copy of the
Student Support and Benefits Handbook to all students union members, which should also
help.

Look at the website for your students union or institution to find your local centres contact
details, or contact your student services department. Otherwise, you may be able to find the
contact details on the National Association of Student Money Advisers (NASMA) website.

Specialist websites for students

These resources offer specialised support for students:

Student parents: Student Parents has information on funding, including a funding

calculator and other tips.
International students: UKCISA is a charity that provides extensive information on
funding, as well as support for UK students intending to study overseas. Their helpline
(0044 (0)20 7788 9214 Monday to Friday, 1pm to 4pm UK time), but note it can
sometimes be very busy.
Disabled students: Disability Rights UK is a fairly new charity with information for
disabled students in further and higher education, including a range of factsheets and
resources. They also have a helpline (0044 (0)800 328 5050 Tuesdays 11.30am to
1.30pm and Thursdays 1.30pm to 3.30pm).
Medical students: Money4MedStudents has information and advice for students on
medicine courses.

General financial advice

You can draw on many resources for general financial advice. The Citizens Advice Bureau
offers general help on money and benefits through its website or face-to-face appointments. The
website has a list of local offices and an online advice guide tailored to where you live.

Another online resource is the governments independent national Money Advice Service.
Students in Scotland can also get local help from Money Advice Scotland.

If youre having problems with debt, make sure you get impartial professional advice. Avoid
'debt advice' companies that offer a free initial consultation they want you to sign up to their
own debt management plans, usually with hefty fees attached. Instead, these debt charities offer
free, impartial advice:

StepChange Debt Charity has an online service called Debt Remedy that gives you
immediate debt advice, a personalised budget and recommends the best way forward for
you. This service is free and anonymous. They also have a free helpline you can call
(0800 138 1111 Monday to Friday 8am to 8pm and Saturdays 9am to 4pm).
The Money Charity has a number of resources for credit and debt management on its
website.
National Debtline also has an online independent advice tool called My Money Steps for
you to create a personalised debt action plan. Alternatively you can contact them online
or call their free helpline (0808 808 4000 Monday to Friday 9am to 9pm and Saturdays
9.30am to 1pm).

Discretionary hardship funds

All colleges and universities run a discretionary hardship fund, and you may be able to get help
from these funds if youre facing financial difficulties.

The funds are called different things depending on where you study. They might be called:

Access to Learning Fund in English higher education

16-19 Bursary Funds or Discretionary Support Funds in English further education
Financial Contingency Fund in Wales
Discretionary Funds in Scotland
Support Funds in Northern Ireland.

Whatever the name, they might be able to help you with grants or short-term loans.

Youll need to apply ask your institution advice centre about how to do it and no funding is
guaranteed, but most will be as sympathetic as possible.

This information was last updated in February 2016. NUS provides this information in good
faith and has taken care to make sure its accurate. However, student finance issues can be
complicated, and rules change frequently. You should contact the advice centre in your
students' union, college or university for support if youre uncertain or need more help.