04/27/2008Help with budgeting!?
- My husband and I are trying to get on a budget and stick to it. It's very hard for us because we OWE on our existing bills. So we essentially rob Peter to pay Paul. I don't know how to get ahead! For example, I was laid off in Jan. 2007 and am looking for employment, so presently we have only my husbands income of $3500 a month. We have roughly $1740 a month in bills. Obviously our spending habits have been insane and out of control. I know where our problems are and we are working to gain control of those issues but even still ... how do people get to the point of having money in the bank to just say 'ok, the electric is due on the 15th, it's the 11th I better pay it now'?? I can't seem to get to that point. Does everything need to be paid down first before I can start even considering a budget? My husband's check is direct deposited, so we never have 'cash'. If we don't do direct deposit then it costs TONS to cash his check b/c our bank is out of state (looong story).
Help? Advice?
- Best Answer:you need to sit down with your husband and make a list of all your bills and how much it comes to every month. then every week take money out of his check towards the bills and set it aside and consider that spent money, then see how much you have left and make a list of things you need to buy for your house and for food. and take that money out and set it aside and consider that money spent, then whatever you have left over take half of that and put it away and save it. whatever you have left after that is yours to spend on whatever. good luck and god bless your family
- Answer:1st I will let you know I have 30 years of Federal experience in the Finance field.
You and your husband have a MAJOR problem on your hands that can not be solved over night, because you did not get in your current situation over night.
2ndly: Right now, take EVERY CREDIT CARD YOU HAVE, place in a plastic Ziplock bag and FREEZE them in your freezer. This is the 1st step in any budget control program that really works.
3rdly: You must categorize your spending:
Essential Bills: House Payment/Rent, Heat, Lights, Food, Telephone/Cell, Auto Loan, Auto Gas, water, garbage,House Insurance, Auto Insurance, Retirement Plan.
Nice-To-Have Bills: Internet, Cable, Credit Cards, Savings Plan, Club/Fitness Fees,
I am concerned when you say you only have $1740 per month in bills. I am single male with a 22-year old daughter and I have more than $1,800.00 in monthly bills.
A BILL is a monthly payment you owe & it is also a cost for doing something monthly: i.e: Grocery Bill, Auto Gas Bill, Misc Memberships to Clubs/Fitness, etc....
Your ages make a different in how you should look at your future.
My suggestion is for you both to seek a financial advisor's help in your local area to establish a realistic budget you both can live with. You realizing your spending habits are a problem is a start.
I need to ask: Why do you feel "Money in the Bank" is a sucess story? Investments in your marriage is a success, money in the bank is just that money waiting to be spent.
Remember this is your life, you only go thru it once. Make your Financial budget work for you, do not "Live" on a budget.
Financial Stress is a major cause in Divorce, PLEASE do not let it get to that point. Take the time to pay a professional a few Hundred dollars to free you from this stress. This is one of those INVESTMENTS I spoke of earlier.
Anyone can spend money like it was water, but after your glass is empty you will always be thursty.
Good Luck and you can e-mail/call me anytime for help. My Cell # is 315-225-2520
Randy in New York