When Times Are Tough, Part II

In Part I we gave an introductory background to how to work through those tough times where you have the college degree but find it tough to make ends meet, with loans and credit card debt to boot. What to do in this situation in an area like NYC? Well, tough times will require some tough decisions, and it depends largely on your mindset and your fervor to get to higher ground.

When times are tough, you have to make some highly unpopular decisions. You may have to take a job that you don't necessarily like—with the base mindset that higher ground is the ultimate plateau you have to reach, no exceptions. You may have to learn to go to grocery stores to buy and cook your own food rather than eating out all the time. You will have to make smarter buying decisions regarding how you buy clothes, managing your hair and eliminating subscriptions to magazines you don't read. You may have to spend more time in the bookstores in the City reading up and sharpening your knowledge in your field. It will involve reducing your cable bill to the necessary options only.

But it's not all gloom and doom and no fun. Ever heard the expression "there's power in numbers"? Consider having in-house chill sessions rather than being tempted to spend money in the City. It's hard I know, but which goal is higher—getting off the paycheck-to-paycheck bandwagon or $20 plus-nights-on-the town? Are you into 24, Grey's Anatomy, House or Reality TV? You can have TV-viewing parties on weekends with friends or card and game nights. It's cheaper than bar and club-hopping and it's more money in your pocket.

Take note—everyone who is decent with money knows that a written plan is the best-kept secret, as it helps you see your progress and will embolden you to work to meet your goal of spending more responsibly and saving better. My written plan is set up month-by-month and I have broken it up further week-by-week. This will allow me to see future expenses for the month and allows me to spend (within reason, of course). In short, remember that in the last 30 years, America has been courted with extreme intensity that to "enjoy life," you have to drive this car now, wear this product now, get this CD now, or use this card now, or Life Will Suck for You. Unplugging from the (and watch how I say this) the over-consumption culture takes discipline. It's OK to buy things, lots of things if you so desire, as long as you can pay for it upfront without putting yourself at risk and running a debt position and you are helping your community regularly.

But what if you're already living close to the bone with your spending? It's time for another income upgrade. If you are on a salary try walking into your boss's office and finding out how you can position yourself for a better income. You should, of course, make sure you're going the extra mile already. You should also work aggressively to find other places to work. Easier said than done? Of course! But I never said this would be easy. You know that already.

As always I would love to continue this topic if anybody has any questions or comments!