Are your debts getting out of control and seem to take on a life of their own? It is an easy situation to get into. You go out to buy something then see something else and before you know it the one hundred dollars you planned on spending has turned into three or four hundred dollars.
Many times talking about fixing your mounting bills is easier said than done. The first thing that you have to do is find out why you can’t get ahead of your bills. To do this you need to keep a spending diary and a good household budget. Your household budget will need to have two categories of expenses. One type should be variable expenses and the other fixed expenses. There are also limited variable expenses, such as your electric bill, as long as it is within a ten-dollar range just pick your highest electric bill and use that figure. It will be ok to use that as long as your electric bill doesn’t start going higher than it ever has before, if that happens you will need to re-figure your budget.
Start by listing all of your fixed expenses that occur on a monthly basis then follow that up with fixed expenses that aren’t monthly, such as auto insurance bills which may be billed quarterly or every other month. Take all of these non-monthly expenses and average them out so that you get twelve equal payments and then calculate them with your monthly expenses.
On your fixed expense column you should have your cable T. V. bill, auto insurance, phone bill as long as it is consistent, and your car payment along with your utility bill, such as, water and sewer. Water and sewer can be fairly predictable as long as no one else begins using the utilities.
Your big monthly variable expenses will consist of your credit card bills, your cell phone, and possibly your gas bill. These are the bills that you really need to work on cutting down because you really can’t budget with them moving around so much. You will have to keep an expenditure diary for everything that you put on a credit card so you can see where the trend is heading. Once the bill gets too high you have to put the brakes on spending for the rest of the month so you don’t go negative. Spending more than you make. If you spend more than you make you will just be digging yourself in deeper.
Take your normal non-overtime take home pay and subtract the total sum of the fixed and variable expenses from it and you should be left with a positive number. If your result is negative you need to cut something from your budget that is equal or greater than the negative balance. If left alone your debt will only keep piling up.
If you can’t really find anywhere to cut you need to find a way to increase your income either with a home-based business that you work part-time or getting a second job.
Bob Crane is a Nutrition Consultant and involved in introducing an extraordinary new Internet Work at Home Based Goji Juice Business System. Check out the new Goji Juice Storefront Contact him online at: www.domesticbiz.com