This article is a continuation of a two part series on a
simple but effective budget plan to fight debt.
7. Fun Stuff. This is the items you do for entertainment or
relaxing. Could be a night on the town, fast food when
running to the next sports practice, travel, or other items
that may actually make life worth living some days. It is
vital that you don't think of this category in a negative
light, it is important; just make sure to keep track of
your spending. In fact, like food diet don't' work if you
take out ALL the tasty food, money "diets" won't work if
there is no room to treat yourself, reward yourself for the
hard work in all the other categories.
8. Insurance, All types of insurance, health, life,
homeowners, renters, auto or any other forms of insurance.
9. Miscellaneous, This is what doesn't fall under
everything else. The most important item to put here is
your personal debt. This includes your payments to debt
such as credit cards or personal loans.
10. Tired of working for the man expenses, This is for the
category of expenses to apply to your
business, savings or investment expenses.
These folder and catagories help to keep you organized when
tax time rolls around. You're not done yet. Setting up your
plan is just the first step. The next important step is to
track your money from the moment you spend it. So copy down
the categories and put them in your pocket or purse.
Every time you make a purchase check that receipt to make
sure the charges are correct. Then pull out the list with
categories, find which category the debt is from and write
the category on the receipt. When your home at night,
gather all your receipts and file them in the correct
category folder.
Now go and balance your account, yes do this every night.
After a while it will only take a few minutes out of your
day. This will not only give you a clear understanding of
your debt load, it helps you develop a plan to eliminate
debt and start living life with less stress.
It also gives you a sense of oneness with your money, a
sense of power. Because you will start to see exactly
where all your money goes. Too many of us don't know
because we're too stressed out at the thought of finding
out. If you start doing this budget plan your have a clear
picture of your cash flow and debt. But debt will not stop
if you don't quit buying that big screen television or
visiting that expensive spa every month to de-stress
yourself from all that credit card debt you accumulated.
You have to start paying the debt down, and then when your
rainy day fund is large and you are not buried in debt you
can take that dream vacation.
In the mean time don't forget you have the category of Fun
Stuff and those are micro mini vacations. Learn to enjoy
and savor your moments out, even if it's fast food. It
isn't going to be easy, but it is going to be very, very
rewarding and empowering.
When you start paying off that debt, start with the small
debt first, apply all you can to it. When that debt is
paid off, take all that money and apply it to the next
highest debt, plus that debts amount you're paying. Before
you know it there will be light at the end of the tunnel.
You'll feel weight lifting off you, weight you may not even
realize has been holding you down.
Hang in there, watch your money and make your money work
for you, high debt only means your money works for the
mortgage company and works for the credit card companies,
not you. You earned that money; the banks just want to
separate you from your money. Quit letting your money work
for the credit card companies, the mortgage company and put
it to work for you. Start saving and investing today.
This might seem like a boring tedious process, but these
steps have been proven put many people on the path to
wealth and freedom so take heed and start today.
----------------------------------------------------
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
http://www.stopbankforeclosurestips.com/blog
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