To be able to help me come up with a plan to help me be able to meet my daily needs, balance my debt to income ratio. In genaral come up with a plan that I can put in use.
2006-12-19 07:11:00 · 4 answers · asked by bob 2 in Business & Finance ➔ Other - Business & Finance
Calculate all your necessary bills to survive and get you to work ( rent, utilities, food, car Pym, insurance, fuel etc.) and deduct from your salary. With what's left put half away (or ten percent of salary) for emergency funds (loss of employment, vehicle repairs, unexpected bills). The rest can be fun money or save a portion for a big purchase (computer, furniture etc).
Avoid impulse buying without having the funds to back it up, and above all never use the emergency funds unless it is a true emergency ( a newer car, a brand new stereo system or plasma TV etc. is not an emergency ).
A comfortable emergency fund should be at least three months or more of you current salary (in case you lose your job or are injured). However the more you save the better off you'll be and the extra can be used for retirement or down payment of a house
Do not buy a newer vehicle unless it is essential (other car blew engine and need it to get to work) and can afford it without sacrificing the lifestyle your use to and still saving ten percent. If there is City transit of any sort consider it, it can save a lot of money (car, fuel, insurance etc.).
You may have to sacrifice things in order to follow through with this plan but it will be worth it later in life especially when you purchase big items with cash in hand.
Good Luck
2006-12-19 07:44:43 · answer #1 · answered by trojan 5 · 0⤊ 0⤋
Read:
Financial Peace Revisited and take Financial Peace University (FPU)by Dave Ramsey
Great plan, my husband and I have been able to clean up a lot of junk and get on the same financial page.
His web page is: www.daveramsey.com and you can find a FPU class in your area.
UPDATE: just because your debt may exceed your income does NOT mean you are bankrupt. You prob. need to sell the $15,000 car when you only make $28,000 or sell the other "toys" (snowmobile, boat, etc) that are weighing you down. Then when you are out of debt, save cash and buy "toys" with cash.
2006-12-19 15:26:00 · answer #2 · answered by mldjay 5 · 0⤊ 0⤋
First list your income . . . does your debt exceed your annual income ? yes, file bankruptcy - no proceed >
Then find housing that is about 25% of that (including utilities)
Everything else depends on your current debt (you gave NO clue there) If you have high % debt, buy nothing except food and gas until you are rid of it (payday loans, credit cards etc. - and if you have payday loans, you may be better of moving in with mom & dad until they are paid off) Also get a 2nd job if you have that high % debt . . . GET IT GONE !
After getting your debt in order, live frugally and invest wisely . . .
Soon you will have extra income from the passive investments so you can scale back on the working work.
Good Luck
2006-12-19 15:21:13 · answer #3 · answered by kate 7 · 0⤊ 0⤋
Yes. There are ways to consolidate all your debt into one monthly payment. Debt Free is a nonprofit organization that will do just that. Check out www.debtfree.com. They will get you started and take a load off your chest.
2006-12-19 16:35:30 · answer #4 · answered by Randy B 1 · 0⤊ 0⤋