How do you go about setting up a budget with almost nothing to start with?

Question

I am in debt, I cannot seem to save any money. I am starting from nothing pretty much, and I need someone to work with me and I am also looking for a credit counselor. I just need to be pointed in the right direction.

Answer 1

You probably have a lot more than you think you do, you're just used to a certain lifestyle, and breaking that is tough. First thing to cut is the small spending. Don't buy lunch at work. Don't buy coffees. Don't buy gum. Don't carry change - collect it in a jar. Number two - Cut up your cards. Most important. Only spend cash from now on. Three, look where you can cut back. Downsize your car and house if you're spending big there. Be satisfiedd with your wardrobe for the next year> NO NEW CLOTHES. Change what you eat. You can live extremely healthily on small amounts of money by increasing the legumes (beans, lentils etc) and cutting back on luxury foods, especially junk food.

What your problem requires is determination and a complete change of mindset. You need to springclean your house, and springclean your life. Look for ways to supplement your income - there are ways, you've just got to search for them. Make it your single-minded objective to cut your spending, cut your debt, and you can overcome it.

Answer 2

I'm expanding on the first answer...

Write down your monthly take-home pay.
From this, subtract the bills that MUST be paid (mortgage or rent, phone, electric, car payment, insurance etc.)
The rest is "disposable" income. If you're getting behind, you are disposing of too much of it irresponsibly. Here's what to do:

1. Don't hide from creditors. Contact them to work out a payment plan. This shows that you have good intentions. Then follow through.

2. Determine what you can live without. This may include cable tv, new clothes, movies etc. Discontinue these for now. NO impulse buying! Maybe you should cut up your credit cards.

3. You can shave a lot off your grocery bill. NO eating out or ordering in. NO convenience foods. No Starbucks. Cook from scratch. Seek out recipes that stretch a pound of meat - meat is a big ticket item. No soda or junk foods. Limit alcohol - that's another big ticket item.

4. Save on gas by combining trips. Plan meals ahead, make a list, shop for groceries once a week.

5. Examine your lifestyle; think of how you can live more frugally. Turn off lights in unused rooms. Turn off the TV when no one is watching. Wash clothes in cold water. Don't use your dishwasher, if you have one - save hot water and electricity, wash in the sink. Eliminate most paper products - use cloth napkins, launder once a week. Use rags & sponges instead of paper towels. Use your china plates. Wash out and re-use ziploc bags. Start thinking like this and I guarantee you can find a hundred ways to save money.

Remember, you have no control over what comes in - only what goes out. You will have to make some sacrifices in order to get back on your feet again, but in the process you'll learn a lot - and sleep better at night!

P.S. I live on a very small income...but I live so frugally that I can afford a really pull-out-all-the-stops foreign vacation once a year. All depends on your priorities!

Answer 3

First off what you need to do is cut out every single thing that you can go without. Like a quick trip to a fast food restaurant, getting some cigarettes, getting some liquor, driving and wasting gas for nothing that is that important etc. If you actually look at all of what you spend your money on and then times it by 12 months you will see just how much money you could save and also you will learn how to budget your money. Look at things that you are spending your money on and ask yourself is this something that I actually need or something that I want. Believe me, people have alot of wants that they consider a necessity. So just try that out and see how much you would actually be saving and instead of spending your money on things that you just want, put that money in a bank account and there you go you have learned how to budget your money and will actually accumulate interest on the money that you would usually spend on things you want.

Answer 4

The first thing to do is write down all your bills. Rent, food, utilities should come first. Next what you should do is write down your credit card bills and loans and what the payments are. These bills are are standard month to month. now that you have all this written down compare the amount coming in (your paycheck) to the amount going out. If the amount going out is higher than the amount coming in you can see the problem. To find a credit counselor, make sure that they are non profit and recommended by the better business bureau in your area. When you go see them bring your list of all bills and copies of your paycheck stubs and they will be able to help you by working with the creditors that you owe.

Answer 5

Definitely follow trollhair's instructions; all I can add to that is, please don't lose heart--you are taking control of your finances, and that is such a positive thing!

Also, check out this website: www.stretcher.com for tons of money saving advice, plus articles on debt, cooking inexpensively, and lots of other great stuff.

Good luck and God bless you!

Answer 6

Write everything down that you owe.
Write everything down that is part of your BASIC living expenses.
BASIC living expenses.
Write down how much you make.
Subtract your basic living expenses from how much you make.
The balance goes to paying bills.
Until you finish paying off bills, you can not go anywhere or buy anything. No thrills type of living.