The Temptation of Crazy Heart

At least one take-away from the movie "Crazy Heart" has got to be that you can turn things around at any age and under the worst of circumstances. Even though the main character is a 57-year old, drop down drunk stumbling downhill, a dramatic incident makes "Bad Blake" realize that he's got to change his ways. And he does. Sure, "Bad" has to pay for his mistakes, but he's back on the straightaway and heading down success highway at the end of the movie. And we can pull off the same Phoenix trick when it comes to rising out of our own financial ruins.

Even if you have had a long and tough financial past, you can recover from poor credit, bankruptcy, and general money mismanagement. There's really no secret to it. It's a matter of "wanting to stop" as "Bad" does, and do things differently.

So what do you do if your spending is way out of control, and you're spinning headlong into the money ditch? Put on the brakes, just like Bad. Then, clean house, again just like Bad does, and get what's sent you down that highway out of your financial house.

For financial mis-managers, that can mean a few different strategies. The best one for compulsive spenders might be to remove the ability to spend. So, eliminate all non-cash sources of money, like credit cards. You can even shut down your line of credit, if you ask your banker to close the line to general use, and only allow it to be paid down. Then, use only cash, and don't even allow yourself to carry a debit card. Make it difficult to get at your money.

Now, budget every single cost, and only go to the bank to get the money you need to live. Besides groceries, most people really can live without access to cash. Even budget your gas use, and fill-up at regular intervals, using cash you've taken out specifically for that purchase. If you always go into the bank, and only take out the money you need for specific purchases, you'll find you spend a lot less than when you were carrying credit and debit cards.

Taking away the ability to spend without thinking-using credit and debit cards-making your cash hard to get at, and living by a budget where you always pay cash are three top tactics to get your financial house in order. These changes can feel like a cold turkey approach to getting your finances straightened out, but just as "Bad" discovered, life is better when the debts are paid.