Every day the media is telling everyone we are in a
recession. Some experts are even saying to hold on because
the United States could face a full blown Depression, the
likes of which our country has not seen since the great
Depression of the 1930's. Unemployment going up, people are
losing their jobs by the thousands every month. The cost of
gas has doubled in less than four years and the oil
companies are getting rich off us. The Housing market is in
the biggest slump in over Forty Years and Homeowners are
facing foreclosures at the highest rate in over 100 years.
What does the current recession have to do with a
Bulletproof, Budget Plan? Most consumers are currently
buried in debt; the savings rate in the United States is at
an all time low of 2 %. This means the majority of us are
buried in debt because of many factors, among them: cost of
mortgage, health problems, job loss, rising fuel costs or
spending habits left unchecked. Many of us have not
set-up a rainy day fund or kept their debt to income ratio
low. Most consumers in the United States are living off
their credit cards and that is train ride is heading for an
almost guaranteed wreck.
So what can you do to protect yourself from this debt train
wreck? Start by getting control of your debt right now. The
best way to start is to set-up a budget plan to understand
your current debt to cash flow ratio. This alone can start
saving you money, just understanding your debt and refusing
to spend money on stupid things.
So let me show you the top secret, bullet proof, fail safe,
budget plan. First thing you're going to do is set up ten
files in a folder or file cabinet. These ten folders are
where you keep the receipts from your expenditures. Now
label these folders as follow.
1. You, pay yourself first. Did you hear me? Pay yourself
first always, this is where the rainy day fund will come
from. Stop letting your money work for other people, make
it work for you. This is your future retirement fund.
2. Giving, this is where you put the charitable donations
to your religious organization, charitable organization.
3. Taxes, enough said, nobody likes them, but you have to
pay them.
4. Home, Whatever your home it may be, house, condo or
apartment. This is usually your largest expense.
5. Living Expenses, This could be utilities, food,
clothing, remodeling or updating your home, or other
expenses involved in maintaining your current living
conditions.
6. Transportation, This includes auto, fuel, parking,
subway or bus fares, auto repairs or auto payments.
The rest of the budget plan is continued in part two. You
will find how to use this plan to start your recession
busting budget plan today.
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MJ Jensen has studied Real Estate from the Homeowners
perspective for over 20 years. He provides tips on mortgage
problems, and understanding debt and credit solutions for
consumers. You can visit his site at
http://www.stopbankforeclosurestips.com/free_report
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