It doesn't take much for you to get behind on monthly bills, but it sure takes some time to catch up. The comparison in my mind is to weight gain. A one-week vacation can easily pack on 5 to 7 pounds. Losing that weight however, can take a good month of cardio. That's no fun, and neither is trying to find the extra cash to pay last month's credit card payment.
Every financial professional's suggestions in regards to budgeting seem so simple. Five percent to savings, thirty-five percent to housing expenses, ten percent for food?tell me honestly, am I supposed to put all my cash in individual envelopes and label them with their assigned debt? Let's get real here. Debt is an overpowering epidemic in America. It's growing every year. I think its time that someone actually made sense out of it all.
If we start in the beginning, it is important to make a budget for your household. Start with any program you like. Try shopping around online for different budgeting calculators. Once you find one that work for you, start making it realistic. It's easy from an outside standpoint to put everything in a box of percentages. What if your numbers don't add up? It's time to think outside the box.
When considering housing expenses, you may be over your limit. An average target is 35%. If you own your home, you can't just sell it and move back with Mom and Dad to save money and refinancing may cost you more in closing costs than you are actually saving. If you need a little extra in one part take it from another. Reduce some of your more flexible expenses like a cell phone bill or clothing costs. Find a less expensive plan and shop the sales at the department stores.
As far as money allotted for paying down debt like credit cards and student loans, you can shave a little off of savings until the balances are paid down or paid off completely. It is important with credit card debt to pay more than the minimum amount due, otherwise you are paying mostly interest and very little of your balance. Student loans however can be paid off in minimum payments without costing you enormous interest rates.
Food expenses should average about $150 monthly per person. This is the total amount including grabbing a bite to eat at the local restaurant. Look for sales at the supermarket and cook at home more often. Frozen and gourmet prepared foods are more expensive than home cooking. Break out the recipe book; your family may just thank you for it.
You realize the basic idea, but what if you don't fit into this category either. If your debt is far less manageable you can contact your local Consumer Credit Counseling Service or a debt consolidation company to help you get back on track. If your credit is still in good shape you may be able to get a low interest loan to consolidate debt yourself with monthly payments you can afford.
It's understandable that with today's busy schedules and the high demands placed on the working family that the last thing you want to do after a long day is to work on your budget. Unfortunately money problems don't go away by themselves. Either deal with them head on and find a way to work through them or they will catch up with you.
Jason M. Rigler
cash now for future payments
Did you know that 43% of all married couples argue... Read More
Single Mother's in need of Financial GuidanceBudgeting is key to... Read More
Confused about whether you can contribute to a Roth IRA?... Read More
For me, the most terrible time of each month is... Read More
Here are ten steps you can follow to help improve... Read More
You no longer look at the pictures of homes cause... Read More
Most of us, especially those of us who have debtor's... Read More
Women are charged more for dry cleaning services. Don't fume,... Read More
If You Have an Existing Account and 5 Minutes, You... Read More
With interest rates being at an all-time low, I can... Read More
Things are so expensive these days. We seem to be... Read More
The Prudential has dubbed those who refuse to leave home... Read More
1. Don't focus on your finances.The reason most people get... Read More
With the advent of the internet and especially auction services... Read More
If you are the normal consumer, then you've probably experienced... Read More
Have you ever stopped to think about how your "mood"... Read More
Developing and living by a household budget is by far... Read More
Has anyone been to the gas pumps lately? Soon $3... Read More
Saving money is not easy and is made more difficult... Read More
It is crucial as an individual who is striving for... Read More
If you were to ask 100 women "What would you... Read More
Commonly referred to as the first of the three major... Read More
You've decided you want a bigger, better and more desirable... Read More
Gas prices have soared to unimaginable heights of late. Since... Read More
When people speak about the increasing age expectancies, they generally... Read More
Antigo wedding limo ..In this age of information, keeping track of your finances... Read More
Sorting out your personal finances can be a tricky and... Read More
It is estimated that we, as consumers, waste an average... Read More
If you die without making a Will in the UK,... Read More
With the A-level results coming out, the long wait for... Read More
This investment retirement account (IRA) is useful to you as... Read More
As the saying goes: "Buyer Beware". If you see ads... Read More
Car donations and used car donations are the way many... Read More
Did you have a piggy bank when you were a... Read More
Good money management needn't be difficult. In fact, there a... Read More
Has anyone been to the gas pumps lately? Soon $3... Read More
Today many women are struggling with debt and it's even... Read More
Many don't realize that our basic utility bills provide the... Read More
Ever wonder where address labels come from? Avery? is perhaps... Read More
Are your financial muscles well toned and healthy or flabby... Read More
Chapter 7The potential chapter 7 debtor should understand that a... Read More
Developing and living by a household budget is by far... Read More
You've analyzed your past expenses, put them into spreadsheets, loaded... Read More
So, you've made the decision to apply for a credit... Read More
With almost two thirds of university entrants from England and... Read More
ID theft is a major consumer concern, though there is... Read More
If you've been to a shopping mall lately, you've probably... Read More
Are you interested in saving money off your grocery bills?... Read More
You have probably accomplished a great deal with your life.... Read More
Reducing the clothing budget was a serious challenge for me.... Read More
Personal Finance |