Money Reorganizing

One of my clients is in large debt. Her small salary just covers her monthly expenses, but she has been adding to her debts with late fees and interest, due to her inability to save money. She came to me when she just couldn't stand it anymore. "I'm totally out of control with this. If I don't do something right now...I...I don't know what will happen."

We started by making a spreadsheet of all of her known expenses, income, debt, online accounts + passwords. This spreadsheet was revised four times over a week as she thought of things that needed adding. In the final version, the subject was "Cigarettes added" and the body of the email read only, "Another reason to quit." Completing the spreadsheet was a step in Phase 1, Gather everything together.* (Next comes Separate and Investigate).

When we were ready to move to Phase 2, Action, today, we accounted for all items to be paid, and planned the spending of the upcoming paycheck. As we allotted more and more of the paycheck, she interjected and asked me, "Why would I put aside the food money for four weeks when I'm going to be paid in two weeks?"

In one organizing workshop I took, we learned the "3 P's:" Preparation Prevents Panicking.

By planning ahead, if something happens to her or her job, G-d forbid, she will at least have money to eat this month, and won't have late fees accruing on her credit cards, insurance, etc. At the end of the phone consultation, she had very little money to go out for drinks and dinner, but her bills were paid (online), the checks for rent and utilities were prepared for tomorrow, and she knew she wouldn't go hungry this month.

The more we think, plan ahead, and prepare the resources for what we do know, the more we can handle life, which is composed of so much we don't know. Sometimes it takes a spreadsheet to make cigarettes part of your past, but in the meantime, let's save the $39 fees for debt paying and, eventually, fabulous celebratory dinners that we are cigarette and debt-free.

Reorganizing. It's more than stuff.

*Please note: Phase 1 is always Gather and then Separate and Investigate, but the phases which follow depend on the project at hand.