Don't be a Financial Hobbit

                                                            

Hobbits are best known from the movie series Lord of the Rings.  Hobbits are described as a race of people slightly taller than the average table, broad in the shoulders and have the strength of ten men.  Hobbit in old English means hole builder. Hobbits like an unadventurous, rural and simple life of farming, eating, and socializing. They eat 6-7 meals a day if they can find enough food.  They are small, shy, afraid of the big people, are content with their lifestyle, live in holes, and find strength when placed under moral pressure to survive a war that threatens to devastate their land.  

Here are 6 reasons you may be a financial hobbit:

1. If you are in debt, throw your bills away, avoid calls from creditors, screen your calls or are in denial about your financial situation, you are digging yourself into a deeper hole of debt. 
2. If you are shy about your financial situation and are afraid to talk to anyone about it.
3. If you feel like a criminal or outcast, feel small or become afraid when you come near to those who appear larger than life or appear to be doing better than you and quickly remove yourself from their presence.
4. You feel comfortable accepting your financial situation, you are in a comfort zone and the fear or doing something to get out of your situation frightens you.
5. When placed under intense pressure from a creditor which threatens to change your life drastically, you at the last minute decide to take action to improve your financial situation.
6. You are like Biblo that goes from a place where he is never hungry to a place where everyone is always hungry. You were living a decent life but then you started to live paycheck to paycheck and are now concerned with the high cost of food and other items and wonder how you will manage.  He goes from a place where he is never far from the ground to a place where everyone is always dangling far above it by their fingertips. You go from never worrying about your finances to hanging from a thread wondering when you will fall into a financial hole.

Here are 7 ways to stop being a financial hobbit:

1. Admission. Admit that you have a problem, make a plan to fix it and stick to it.
2. Become a warrior.  Don’t get depressed, shy, afraid or stressed about your situation. Know that you are not alone and that you have the strength of ten hobbits and can overcome your situation.
3. Come out of your hole.  You can’t hide from your debt.  Face your fears and responsibilities.  Call your creditors to setup payment plans to pay off your debt.
4. Don’t be shy. Let those close to you know that you are having financial problems.  Consult a professional to get assistance if you are not able to resolve the issues on your own.
5. Become allergic. Become allergic to getting into financial problems.  Make a permanent change to ensure you avoid filing for bankruptcy or foreclosure or have legal action taken against you because you make a financial mistake.  Create a financial safety net to ease future unexpected financial situations you may encounter.
6. Don’t disappear.  Don’t avoid contact with your loved ones because of your situation. Talking to others about your problems helps gain insight to see the “big picture” and your situation may not seem as bad as you think.  Rally around your loved one for support and encouragement.
7. Find “big people”.  Don’t be afraid to interact with people who are doing well financially.  Share your experiences and seek advice from those that have good financial habits.  Ask for resources to help you with your situation.