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Simple Steps To A Working Budget

 

There's no doubt that the first step toward you taking control of your financial situation is do some basic calculations comparing how much money you actually have coming in each month with how much money you are committed to spend.

Budgeting doesn't have to be scary or complicated. You begin by listing your income from all sources. Next you make a list of all of your ongoing expenses like mortgage payments or rent, car payments, electricity and insurance. List ONLY those things that are absolute necessities. (Note that food is not even on your list yet.)

Renting movies, going to the beach or buying a new pair of pants are not necessities. You can also exclude potato chips, ice cream and McDonald's as well. Your first and primary financial responsibility is to keep a roof over your head, electricity in your home and pay off those creditors who trusted you with their money or merchandise.

Now simply put aside out of each weekly paycheck at least one quarter of the month's expense for necessities. Consider setting aside even more in the beginning as you play catch-up. Only now that you have provided for paying the necessities do you think about eating.

Working Budgets Bring Peace of Mind

This is the point where you decide if you're having only hot dogs and beans for the next week or steak and potatoes. You do NOT want to be over spending on your grocery bill when it means you cannot pay your creditors. You really can survive eating cheaply while you catch up your bills and it's critically important to allocate what income you do have available responsibly. Remember. it's better to suffer from lack of T-bone steak then put up with the harassing telephone calls and loss of your only car.

If after making all of these calculations and committing to hot dogs and beans for the next six months you find that you still don't have enough income to catch up your bills, then it's time to have someone contact your creditors with your very legitimate need to work out a financial compromise that will allow you to pay off your creditors and immediately stop the telephone calls. Or, maybe you find that you now have adequate income but lack the discipline necessary to manage your money well. In this case, too, you will likely benefit by arranging for a professional advocate.

There are very few people that have the ability to not be personally involved when trying to negotiate with their creditors. How can you NOT be personally involved? It's your money you're discussing. You're normally much better off having an independent professional contact your creditors to work out a payment plan that will be good for YOU and also allow your creditors to receive at least a portion of what you owe them.

Simple Steps To Controlling Your Debt Quickly

Budgeting doesn't have to be scary or complicated. You begin by listing your income from all sources. Next you make a list of all of your ongoing expenses like mortgage payments or rent, car payments, electricity and insurance..

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Reference: Simple Steps To A Working Budget

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