Comments on: How Can I Make A Fool Proof Budget Plan?

By: answers for people!

answers for people! — Sat, 01 Aug 2009 11:31:28 +0000

that’s a big request! it sounds like you have 2 separate issues. the first is your use of credit cards. the second is not having a budget. intermixed is the problem of debt.
let’s start small with #2. do you have a budget? if not, use excel and make a budget with all your monthly expenses. see how far your incomes (after taxes) will go with all your debt. if your monthly expenses exceed your income, you have a problem. you either need to cut back on your spending or increase your income. ideally, both.
once you have a picture of your finances, then you can see what you are spending your money on now and what you can do to cut back. for example, you may see that after all the regular bills (housing, utilities, vehicles, food) that you are spending a lot on unplanned expenses. or maybe you go out to eat 4 times a week. that can add up. find ways and areas to cut your expenses. that way, you can put more money towards paying down debt, which saves you money on interest charges.
back to #1. if you can’t control your spending on credit cards, then cut them up or lock them up. don’t cancel as it can hurt your credit. carry 1-2 cards for emergencies with small limits. request the bank to lower the limit if you can’t control yourself. use debit card for your expenses. you can’t overspend here.

By: samsosa2

samsosa2 — Sat, 01 Aug 2009 11:04:22 +0000

Split your money into three seperate accounts, one for bills, one for savings, and one for fun money. Destroy your credit cards. Check cards are equally versatile allowing purchases. Read the book “automatic millionaire” it will help you.

By: SmittyJ

SmittyJ — Sat, 01 Aug 2009 07:50:41 +0000

You and your husband simply don’t have the tools necessary to be fiscally responsible….While you are probably quite successful in your respective profession(s), it’s very clear that you need to seek professional financial advice immediately. “Maybe we are stretching beyond our means”…what an understatement. You are putting you and your family’s wellfare in serious jeopardy and should seek the advice of a financial planner immediately. It won’t be pretty, the advice you will likely get will be that you will need to drastically lower your standard of living but use it as a learning experience not just for you and your husband but more importantly for your kids so that they don’t repeat the mistakes you and your husband have made. Good luck.

By: auskan20

auskan20 — Sat, 01 Aug 2009 01:34:16 +0000

The best way to determine what is a must is to never buy something on impulse. Make a list and stick to it – no matter what kind of “sale” you encounter when you get to the store. If you see something you want that is not on the list, go home and think about it for a week. If, at the end of the time you still want it, find a way to afford it. However in most cases, after a week you will realize you don’t want it that badly after all, so you will have saved that much money. Cut up all your credit cards and pay cash for everything. When you see real money changing hands for all your purchases, you will more easily see what you are spending and be more reluctant to waste that cash on things you don’t really need. Think hard about each purchase. Currently get your hair cut every four weeks? Will every 5-6 weeks make that much difference? If not, cut down and at the end of the year you will find you saved quite a bit by just doing it less often. Same with other things. Like movies? Instead of going to see them on the big screen, make a list of what you want to see, wait a few weeks and rent the DVD. You’ll pay a fraction of what you would have paid for the whole family to see it at the movies. Or, if you MUST see it on the big screen, eat before you go and don’t get the popcorn and sodas – that in itself will save a bundle on the experience. These are just a few suggestions but hopefully will get you thinking about other ways you can save without feeling like you’ve given up living.

By: Phoenix, Wise Guru

Phoenix, Wise Guru — Fri, 31 Jul 2009 22:49:05 +0000

Food, clothing, utilities, child care, and housing are a must. Anything else can wait. Period. You spend NOTHING on hobbies, stop eating out, no more things for “me”, etc. You can live without it. Trust me.
Cut up the cards except one and use it only for emergencies. If you don’t have the money to buy it, chances are you don’t need it. Do you really want to tell your kids “Sorry, no Christmas, we were too irresponsible. Oh, and no college, either”?
What makes sense is to buy only what you need and put the rest in savings, making luxury purchases once in a while. You have a family to think about now. Time to simply stop being childish and wanting, wanting, wanting.
Never buy anything immediately. Think about it for a little while before making any purchase. Discuss it with your husband and/or family. Think about how many hours you had to work to make the money to pay for it. Think about how you could be saving for your kids’ college or a great family vacation instead. And CUT UP THOSE CARDS!!! NO cards from stores what-so-ever. Just be mature about it.
You HAVE TO HAVE money saved to pay for 4-6 mos. worth of your real expenses. If you don’t, you don’t buy other stuff. If it doesn’t rank as important enough to save for in this emergency fund, then it isn’t important enough to buy at all.