How do I get my finances under control???

Question

No matter what I do I can't seem to get our finances under control!! We had to file bankrupcy in December so all we have for bills are our cars, house, child care and the other basics. I try not to over spend only getting what we need but it's not helping!! What else can I do??

Answer 1

You have to dedicate yourself to being a money monger for one month. You have to keep a log and track every penny that everyone in your household spends. You will be surprised by the money you spend on eating out for example. Then you have to calculate your average monthly income and add up all your bills and figure out what’s left for food, entertainment, etc. and you should set a certain percentage aside for mishaps such as a blown tire on your car.

Answer 2

I think that you might be lacking dicipline. You have to put your foot down and cut down on the extra coffees on both ends. You and your husband should sit down and write down you complete amount. take away the basic payments the you need that you have been talking about and see what is left. The savings portion should be a must. It should be subtracted just as you subtract the rent. Go to the cleaners less and try to do some of your cleaning yourself at home. Read the labels. some of the light washing can be done by you. Did you find out if there were any cheaper day cares? What about the size of your house. Maybe you need to downsize? Check food. Do you buy the more expensive brand? Do you or the children waste a lot. Do you keep on appliances and other electrical equipment on longer than you need to? Its not one big thing that cause you to save, it is several little things all put together. Also you cannot save at all
if you are not sticking to your means and yours alone. (the family needs).

Answer 3

If you are using credit cards try switching to cash since you can't spend what you don't have. Also take a look at the "other basics" you mention and see if all those are really needed or if you can make some cuts in that spending. If it turns out that you are just not making enough to cover all your bills, you may have to consider getting rid of one of the cars, finding cheaper child care, moving to a more affordable house, or getting a higher paying job if possible.

Answer 4

Hi all.

Financial Discipline is very difficult to achieve. Our society tends to be governed by instant gratification. Peer pressure is also another social problem, we always want to make sure that we are on par with our friends and colleagues. However, not everyone has the same financial resources, and this means that when trying to keep up with the Jones's we end spending more than we can afford.

If we have been reckless with our finances, we find it very hard to reel our spending habits in, and sacrifice the little luxuries we have become used to. Humans are gatherers and they like to accumulate goods, lifestyles and other trinkets. These objects that we accumulate over time act as a method of peacocking. We use it as a means to measure how well we are doing compared to others. This process of purchasing combined with the credit-rife society that we live in means that we only suffer the consequences much later. Our egos eventually make us prisoners of our spending habits.

I like to correlate habits with addictions; in order to over come an addiction you need to make a concious effort to change. The same is true with a habit, especially when it is a bad habit like our spending habits. When we realise that we have a bad habit, it is likely that we undergo feelings of grief, and we need to work through these emotions before we rationally work through our debt.

Tips to change spending habits:
1) Use cash instead of credit cards for as many purchases as you can.
2) Evaluate each purchase to see if it is a want or a necessity, e.g.
a) disposable diapers for a baby may be a necessity, but could nappies be a more cost-effective solution.
b) do you need to grab a coffee and a bagel on your way to work, would it be cheaper to have breakfast at home.
c) Can you have a meal without having dessert?
d) Unless you suffer from diabetes or hypo-glycemia, do you really need to spend on snacks?
e) Do you really need a gym membership, can you get the same exercise at home or by doing some other activity, like jogging, or cycling?
3) Downgrade the credit you have available, or preferably keep 2 credit cards, 1st card with a very small limit that is used for monthly expenses, the 2nd card is not carried with you but remains in a safe place, and it is only used in emergency situations, e.g. your car breaks down and needs to be repaired.
4) Get rid off the unused excesses in your life, e.g. clothes that you don't use anymore, or the electronics that is now outdated and goods that have no useful function in your lives.
5) Keep a track of all your expenses, that way you can see how your spending patterns change from month-to-month.

Hope this is useful.
Sumoj Simon

Answer 5

Getting rid of one of the cars might not be an option. Getting a second job will help resolve the crunch. You may be able to double up on the car payments and close those out soon. I had to do this we had 4 car/motorcycle payments at the same time and was always missing one bill or another.

Answer 6

I know this can be a hard place to be in. 1st of all find someone you respect - and sit down with them and go over your budget. Make a list of what you have to pay to survive, in the order of need. Be realistic. Pay them in that order. Such as House payment, childcare, gasoline, groceries. You know - you have to have house to live in, pay childcare so you can work. buy gasoline to get to work, and food to live. Then go down the rest of the list. If you use credit or check cards, stop. Take cash out once a month and put it in envelops and when the money is gone, so is the spending. It will give you opportunities to go "Do we need this pop or should I be buying bread??" "Should I just drive where ever or should I start planing trips?" It is hard, but doing this with someone else makes you more honest with yourself. Good luck.

Answer 7

Look at changing to a more financially managable housing and auto plan. Can you start selling your stuff on ebay to generate more income? Use the library instead of the mall. Have your partner or a friend buy groceries and cook instead of fast food or restaurants. Go to parks instead of clubs. Beaches instead of things that charge.

Good luck, get a book from the library.

Answer 8

Get your life under control and live within your means. If you give 1 million dollars to some people their lives will not change and they would have the same problems. Get your life under control and your finances will follow.

Answer 9

The exact (or close) answer will depend obviously where you live and what you make!

Lifestyle is a typical answer. I have lived (in the USA) for $400/month (single), $1200/month (married, no kids) and $10,000+/month (married with two kids). So kind of seen it all and live the American dream.

Make a list of your wants and needs and you will most likely find an answer.

Answer 10

your first problem is Cars, plural. Sell the cars.