Today, we'll talk about the current challenges we face in our money lives and outline some simple tools to make positive changes in your financial life today.

In these days with ever-rising costs, depleting equity in home values, foreclosures in record numbers, and the talk of a recession, it's no wonder we feel financially stretched. When will it end? And, more importantly, what will I do to get through this difficult period?

Perhaps, until now, you did not give your finances much thought. When you wanted something, you got it, either by using your ATM, paying cash, or using a credit card. Bills were being paid, even though keeping a checkbook register was a thing of the past -- ATMs, online banking and overdraft protection, made it obsolete... or so it seemed.

Banks, however, are counting on us not to look too closely at our bank accounts because they are making money every time we use overdraft protection or they make a mistake that we don't catch. This type of behavior (this "money fog") keeps us disconnected from the reality of what is happening in our financial world.

Using a credit card or equity line as a source of income is another way we disconnect from our reality. We may be spending too much, living beyond our means, or simply not earning enough to support our lifestyle.

If this is resonating with you, don't be too hard on yourself. You can turn this around - and the time is NOW.

* Strategy #1 - Understanding *

It is important to understand where your money behaviors come from, because, with understanding, comes change. Behaviors are a result of our belief system. We behave a certain way because we believe certain things.

For example, my mother did not work and had to ask my dad for money. She had to fight with him for anything extra. I grew up feeling that my financial security came from someone else, and believing that I would be taken care of by my husband.

This lead to a lot of self-destructive behaviors with money. Understanding where my behavior came from guided me in making positive changes.

* Strategy #2 - Clarity *

The confusion around your money can be scary. The money fog I mentioned earlier can bring financial turmoil. It can be as simple as not knowing what you spend on groceries or as complex as not knowing your net worth.

Clarity lifts the fog. Clarity is knowing:

* How much money you spend each month

* What your checkbook balance is and if it matches your bank statement

* How much money you earn

* What you owe, including the interest rates on your credit cards

* Your net worth

* Your financial and personal goals

* Strategy #3 - Wants and Needs *

If you are not taking care of your basic needs (food, clothing and shelter, it is impossible to feel secure, happy or prosperous. Living in a safe environment, having adequate health care and driving a reliable, safe car give us a feeling of security. Of course, we want more than just having our basic needs met; however, prosperity starts there.

Some of us, however, don't know the difference between a need and a want. If you have a history of feelings of deprivation, everything may feel like a need. A need is a "must have" while a want is a desire, a wish.

The goal is to get your needs taken care of as well as some of your desires, without creating chaos with our finances. When wishes are deferred, not ignored, true abundance is experienced.

* Strategy #4 - Planning *

We plan most things in our lives: our daily tasks, vacations, holidays and even meals... yet we often do not plan how our money will be spent or how we will pay for these big expenses. Planning allows us time to save for that vacation or cut back somewhere else if needed. Planning our money life is imperative for financial success.

Developing a spending plan (not a budget) keeps us looking forward, allowing the time to make adjustments when needed.

* Strategy #5 - Recovery *

When most people hear the word "recovery", what comes to mind is recovering from an illness or the recovery room in a hospital after surgery. The dictionary definition is "the act of regaining or restoration" -- something is gained or restored.

Recovery is a healing process. We can trust it, even when we don't understand it. Where we are going is better than where we have been. One thing leads to another and things start to get better.

This certainly is true with financial recovery. If you follow the simple steps I have outlined, you will establish a strong foundation that will enrich the physical, emotional, mental, and spiritual aspects of your life.

Start now. Make small changes by taking the time to develop that important relationship in your life with money. As with any other relationship, it takes commitment, time and energy but the payoff is amazing.

Ask for help where and when you need to, get support and reach for the life you have always wanted and deserve: rich, fulfilling and prosperous.