Guest Author - Vickie Enkoff

Controlling your spending

It is so easy for us to get in over our heads with our spending. Credit cards are easy to obtain, especially when you pay your bills on time. Companies will entice you to keep charging until you can’t keep up and then they will make your life miserable! Such is the life of many Americans.

First, we need to realize that we should be spending less money than we earn. It is not a concept that is taught very well in America.

You can avoid major problems by:

Having a plan! Set up a budget with measurable, quantifiable goals and stick to it! It will save you a lot of frustration later.

Setting up a savings account that you tap into only in case of emergency (car repairs, emergency medical, and things that keep you going to work to bring in money!)

Setting up another account for your retirement. Do this as early as you can and don’t touch it until you retire!

Decide which bills are to be paid out of each check and pay those first. If there is anything left over then you can buy groceries, go out to eat, or go to the movies. Consider setting up an account that automatically pays your bills each month so you don’t have to sit down and do it every month. You could have a household account and a cash account. Have your check deposited into the household account and don’t take money out of the household account if the balance falls below an amount that you have previously set as ideal.

Have health insurance! It can really save you money! A broken leg can set you back $20,000 or more! Health insurance can be had for much cheaper!

What can you do if you are already over your head in debt?

Make sure you pay the monthly minimum on your credit cards and negotiate with your lenders for cheaper rates. Watch for balance transfers, but read the fine print carefully. Some are adjustable, some are fixed, some have balance transfer fees and some don’t. Some are fixed for 3, 6, or 12 months. If you do transfer your money from one card to another, you should look at a 2% drop in interest rate to make up for fees to transfer. Be aware that if you are one day late on your payment, they may have the right to raise your interest rate. Check your credit card bills every month to make sure you were charged the correct interest. Make a game of finding lower interest rate offers!

Clear your clutter. Sell what you don’t use at a yard sale, flea market, or on ebay and put the money towards paying off your debts!

Use recycled objects to make things to sell: e.g. old clothes to make quilts, metal leftovers to make a sculpture, learn to tole paint things people give away, like wooden boxes, cigar boxes, old flower pots. Challenge yourself to find ways to make things to sell that don’t cost you any extra money except for a little paint, glue, or thread.

Provide gardening, housework, or transportation services to those who can’t do it for themselves.

Have your children share a room and rent out the extra one.

Drink water instead of colas and other beverages.

Make large meals and freeze half.

Look closely at your situation. Review your budget regularly. Keep a log of where you spend your money. Keep reviewing it until you are able to pay extra on your bills and get out of debt faster. Brainstorm with others ways you can bring in extra money and ways you can cut back on costs.