The Home Budget – When It Doesn’t Balance – Part IV

For so many people money tends to run through their fingers like water.  Living paycheck to paycheck is more of a dream than a reality.  I know way too many people that are broke within three days of their payday.  To survive until the next one they rely heavily on their credit cards to the extent that it exacerbates the problem and they can see no end in sight. 

Most people aren’t in the dire straits they imagine themselves to be in.  Almost anything can be overcome.  It takes planning, courage and self discipline.  Once happiness and relief enter the picture the task at hand is much easier to master. 

Understand that budgeting and finances is not rocket science.  It is just common sense and basic math skills - addition and subtraction.  If your expenses exceed your income than your budget is not in balance.  To balance your budget you need to bring your expenses in line with your income. 

Look for ways to save money.  Consider implementing some of the following suggestions: 

·                     Cut the cell phone plan.  Purchase a prepaid plan like Tracfone or GoPhone and pay as you go.  Your monthly bill can be as little as $7 per month

·                     Cut the cable/satellite TV

·                     Cut the internet; use free WIFI at the public library

·                     Cut out the movie rentals – Blockbuster, Netflix, Red Box

·                     Stop dining out – no restaurants, fast food or deli items from the store

·                     Consider public transportation over using your car every day

·                     Become a single car family; sell a vehicle

·                     Cut up your credit cards; use cash

·                     Vow to purchase nothing but groceries and gas for one full month

·                     Use up what you already have on hand

·                   Purge your home; take nicer items to consignment shops or advertise for sale on Craigslist.  Use the income for debt repayment

·                     Turn the heat down and put on a sweater

·                     Cut your consumption – eat less, buy less, use less

·                     Put vacation plans on hold for one year

·                     Cut your Christmas budget in half 

Consider finding an additional income source.  Taking on a part time job to pay off debt may be a wise decision as long as work-related expenses are kept to a minimum.  If additional child care and gas expenses sharply cut the resulting income then it is obviously not worth it. 

Always call your creditors if you are not going to be able to make your monthly obligations.  Most are willing to work with you to help you come up with a workable plan.  If you agree to an arrangement make sure you keep to it. 

Raise some cash!  Have a huge yard sale and sell off what you don’t need.  Consider having a yard sale in different neighborhoods by borrowing a friend or relatives driveway one weekend until you are able to sell everything you need too.  Take nicer clothing and accessories into consignment shops.  List items for sale on eBay and Craigslist. 

If things are really tough contact a reputable not-for-profit credit counseling center for help in getting things straightened out.  There are a lot of classes on this subject taught in community education programs. 

Your clergyman is also a good person to contact if you are in need of assistance and direction.  He most likely will know someone who can help you with the particulars, especially if things have gone too far.

Remember that you are not alone in your struggles no matter how great or small and help is always available if you are willing to ask and then accept it.  I’m not talking about handouts but more along the lines of guidance and direction. 

You may be just fine.  You may just need a little tweaking to make things better.  Or you may have found yourself in a great big mess and no idea where to begin.  Regardless of which one you are I wish you all the best in your budgeting endeavors.