A Budget Plan to Help You Avoid Bankruptcy
It is distressing and certainly disheartening to come to grips with any financial difficulty, especially debt. It slowly sneaks up on you and before you know it the monthly statements are keeping you awake at night. Verbal accusations or complete lack of communication become the norm as frustration takes over and the couple begins to flounder with the sick feeling of hopelessness.
The good news is that there is a way to fight your way back out of debt. The method is that dreaded “B” word that so many seem to steer away from but a budget can really be your friend and not your enemy. Being unwilling to accept what this “B” word can give you in a positive way may lead you to become familiar with another “B” word that you do NOT want to have in your vocabulary: bankruptcy.
So many think they do not have time to make up a budget but if you are serious about facing the issue and taking back control of your finances, then you do not have time not to make a budget.
A budget is simply a written plan to give your expenses direction and usefulness instead of coming to the end of the month with no money left and nothing but question marks where it all went. You work hard at your job and want a comfortable home and security plus the times of needed relaxation. What you do not want is a mental breakdown under the stress and frustration of not having control of where you hard-earned income gets spent on. That is where a budget is a helping hand to guide and direct you in the proper path and you choose how that is going to work for you situation.
For many, a budget carries with it the idea of no more fun and entertainment. Some wives may fear this idea because there are spouses that have used it as a control tool. Numerous husbands also run from this concept because now they will have to be accountable for their spending habits with “the boys” or they might have to learn how to balance the checkbook. Whatever your situation may be, both husband and wife must work together as a team. If both partners put forth a honest effort they will soon be amazed at the renewed vigor and life that will blossom as they work together through this difficulty and come out on the other side with real freedom from the chains of debt.
A budget is simply spending your money with intention instead of letting it just “cover the needs”. It makes sense to understand that before you can make a budget you have to know what the household expenses are. Therefore some a type of accurate accounting system must be in place. There are several easy-to-use programs for home use to choose from that do take a little bit of time to learn but soon it will be second nature. Remember, the goal is to create a budget so you do not have to face bankruptcy down the road. We are going to take back control of our money so our money works for us instead of us working for money debts.
Start by making a list of all your regular expenses as a monthly total. For example, if you just pay an insurance premium once a year then you need to figure out a monthly average to cover that total. List your expenses for housing, utilities, food, transportation, clothing, medical and health, personal items, such as shampoo and soap, recreation (yes, you need some time off for fun). One final column would be the monthly debt payments already in place that you are paying on.
With this total of monthly expenses listed on one side of the page and the total of what your monthly income is on the other, you can quickly see if you are getting farther behind, breaking even or getting ahead. It will take three or perhaps four months to get accustomed to using a budget but by taking a honest and open view of where the money is going you can be able to make a high quality decision on areas where you could cut back or eliminate completely.
One example may be the cable subscription. Is the $89.95 really necessary and being used? That could certainly make one of the minimum credit card payments.
The goal is to determine how much you really need to set aside for each expense and then stick to it. It will not do an ounce of good to have the best written budget only to decide it will be all right to spend twice as much on groceries this month because you want to have the entire neighborhood over for a party. A budget is a wonderful positive tool if properly used.
These are choices the husband and wife can and must work out together. When two are working together as a team, however, greater power can be achieved. Zig Ziglar tells about what happens when Belgian horses work together. One horse by itself can pull 8,000 pounds of weight. Join two horses together and they can immediately pull over 18,000 pounds of weight. That is more than each horse by itself.
By hooking on as a team, pulling together and going by the agreed on budget the light will start to shine at the end of the tunnel once again. In just a few short months you will begin to see some definite improvement in your financial standing. Life in general will take on a brighter tone. By sticking to a working budget you can and will see the last credit debt paid off and then can start applying that same amount to a type of savings plan where the money can start to work for you instead of slaving away to pay interest to somebody else.
That just makes good sense.
Related Posts
