We are always behind on our bills and we are always overdrawn at the bank. My husband and I both work full time. We don't go out and we don't waste our money foolishly. What can we do ???
2006-06-12 08:56:30 · 7 answers · asked by ♥ tinker123♥ 5 in Business & Finance ➔ Personal Finance
You have to either increase your income, or decrease your expenses.
To increase your income: get a higher-paying job or a part-time job.
To decrease your expense: you may have to move to a cheaper house/apartment; if you have two cars, make do with one and sell the other; get rid of cable TV; get rid of your cell phone(s); if you have a mortgage, consider refinancing or even taking some of your home's equity to pay off credit card debt (watch out for interest only notes--- you will end up even more broke when the interest only term is over). Increase the deductibles on your homeowners insurance and car insurance; this will raise what you pay in an accident but lower what you pay every month.
Use a simple spreadsheet program to track your expenses every month so you can see where your money is going!
2006-06-12 09:05:50 · answer #1 · answered by dcgirl 7 · 2⤊ 1⤋
The first thing you need to know is where does all the money go. That means you need a budget, You also need to track every penny, but not forever, just for one month - that will give you an idea of where the leaks are.
Dave Ramsey's website (see sources below) has a simple budget that starts with necessary expenses (shelter, transportation, food, clothing), moves to wants (cable/satellite TV, cell phones), and finishes with debt. Go to the library and check out either "Your Total Money Makeover" or "Financial Peace". Both have the budget worksheet in the back.
Once you see (on paper) where the money is going, you can work together to decide what needs to be cut. It may be that one or both of you need to get a second job until you get some debts paid off. Or maybe you need to get rid of the expensive car payment and get something more affordable (no payment). Maybe you need to have a yard sale to get rid of stuff you no longer love and use that to pay some things off.
Being overdrawn and making late payments are two of the worst things you can do, financially. The NSF charges and late fees alone will kill your budget. You should always have an emergency fund ($500-1000) that you can draw from. Emergencies will happen, but they are much easier to deal with when you are financially prepared.
We have been following Dave's program for almost two years and have paid off over $25,000 in debt and have that small emergency fund. It's not easy, but it is worth it in the end.
2006-06-12 15:21:40 · answer #2 · answered by homeschoolmom 5 · 0⤊ 0⤋
1) make a budget
2) try to get a debt consolidation
3) if it's not enough, earn extra money
2006-06-12 11:56:01 · answer #3 · answered by carlos 5 · 0⤊ 0⤋
Tinker, do as we did. Check out our website at www.fhtmca.com/CHouston. Earning potential is unlimited; be your own boss.....and have FUN while making great money! This is not a scam......all legal; tried, tested and true!! Do it!! You won't regret it. If you require additional info, please contact us.
2006-06-15 19:02:53 · answer #4 · answered by Dave (Wolfman) 1 · 0⤊ 0⤋
If you have several credit cards or loans, consolidate. The payments might be lower.
2006-06-12 09:00:04 · answer #5 · answered by Randy 3 · 0⤊ 0⤋
join the rest of the club
sucks dont it?
2006-06-12 09:00:09 · answer #6 · answered by Anonymous · 0⤊ 0⤋
anal sex
2006-06-15 09:20:40 · answer #7 · answered by knightmare8782000 1 · 0⤊ 0⤋