J
JoyfulOne
Guest
You have gotten a lot of good advice, and what I am going to say is redundant, but I’ll hit what I believe are the highlights.
BUDGET A written down one, not the kind you keep track of in your head. A budget is a plan, and yes, sometimes you waver from it, but it will give you a better way to manage.
I am going to assume that you tithe, so I won’t go into that, except that thre is the first ten percent for your written budget.
Budget off one income only, if you are married. That way, if one spouse loses their job or needs extended medical leave, you won’t sink.
Keep your housing costs below 40% of the total budget–not just mortgage/rent, but including utilites, insurance and taxes. If your housing costs et to be more than 50% of your budget, you are likely to blow the budget. (Be aware that lending institutions will cheerfully put you in this position. They do not care.)
Do not use credit cards for unbudgeted expenditures. Ever. Learn to save up for wants rather than buying things on time. Do not use credit cards at all unless you can pay them completely off at the end of every month. The first month you carry a balance, stop using the cards.
Budget in car repairs and dental emergencies so you will not be tempted to put such things on credit cards.
Budget in an Emergency Fund and start building it up. Aim for around six months worth of living expenses (not salary–just what you need to buy food and pay your bills). This way, if you lose your job or are too ill to work, you will not have to go into debt to survive.
Learn the difference between a want and a need. CDs and the latest in computer technology are not needs (however nice they are to have
). Learn to save for your wants–you’ll appreciate them more.Pay off your smallest loan as soon as you possibly can. This will be one less bill in the mailbox, and will give you a psychological boost. Then take the money you were paying on the smallest loan and apply that amount to the loan with the highest interest rate. (Note–DO keep paying at least the minimums on all loans.) When you finish paying that one off, take the money you were paying on it and apply it to the loan with the next highest, rate, and on down the line till you are free.
Uh, lessee…rice and beans are a complete protein, and very tasty. If you get to liking them, you can save lots on food
Sodas are dumb things to spend money on. Starbucks has managed to delude people into thinking a cuppa is worth four bucks–it ain’t. Your body needs water, and it is free. If you don’t like the way your household water tastes, buy a Brita filter–it’s cheaper in the long run than buying bottled water. And if you are full of water, you won;t want the sodas or Starbucks.Unless someone is paying you to advertise their company on your body, “Designer clothes” don’t make sense.I’ll think some more
