Once you have a clear picture of where all of your money is going you can tighten your belt as you see fit and maybe make some changes and start saving or investing for your future.
Let's talk a minute on how the average person spends their money.
Housing is the biggest expense most people have. This includes everything from the house or apartment you live in, the utilities and supplies needed to make it run, and the furnishings you put in it.
Transportation is the next largest expense and this includes buying the car, keeping it full of gas, and having money to pay for maintenance. Transportation costs could also mean paying to use public transportation although this amount would not even come close to buying and paying for the upkeep of your own car.
Grocery expense is next. This includes food and personal items you buy at the store as well. You can also include food purchases at restaurants when you go out although sometimes this can be in your entertainment section of the budget as well.
Healthcare, insurance premiums and pensions come next. If these are payroll deductions you may rarely even think of them because they come directly out of your check but they account from about 10 to 25% and in some countries even more of your income.
Entertainment comes in next and includes going out to the movies, seeing your favorite band in concert, or going to the game every now and then. Like I said this can also include going out to eat as well.
Everyone has to wear clothes and shoes so we will add it here. Enter this into the area for your clothing budget on your spreadsheet. Now not everyone buys clothing or shoes every month so just do a rough estimate in this category.
Charitable donations, education, (including tuition, books and supplies) and miscellaneous end this list. Miscellaneous could include expenses regarding any pets you might have. They need to eat and drink and play. They may not need a lot but the expenses they have are ongoing throughout their lives.
So if you are honest with yourself about where your money is going, you can have better picture from where you cane save money and from where you can't. Then you can redistribute some expenses from one category to another.
Losing your home to foreclosure is never a fun experience. Everyone out there wants to pay their dues, wants to be a model citizen and not cause a hassle but with the economy the way it is, sometimes we simply do not have the money. In situations like this it can be extremely stressful as you fall behind, wondering what you are going to do to avoid losing your home.
However not all is lost, there is still hope out there. There are ways you can avoid have your home put on a list of pre foreclosure homes. If you act early and utilize the following tips you can keep your house and continue making the payments necessary.
1. Do not avoid creditors. Nobody likes having creditors constantly call them. You may get to the point where you do not even bother to pick up the phone, knowing it is them. Instead, make contact with them and tell them your situation.
Ask about ways they can modify your payment plan so that you can actually make your payments. Creditors want you as a borrower as it makes them more money, and they are not interested in entering the foreclosure process if they do not have to.
2. Start early. You know whether or not you can pay your bills long before creditors start hounding you. Get a jump on the problem by contacting them first to try and talk about ways of modifying the payment plan before you fall too far behind. As well you can talk to a Department of Housing and Urban Development agent about pre foreclosure homes and how to avoid losing your home.
3. Prioritize your mortgage. Out of all your bills your mortgage is easily one of the most important, as such it should be the first thing you pay off. You can live without television or cable, but losing your house is not something you want to go through. So make sure you give it the utmost priority when doing bills.
4. Learn about the problem. Knowledge is power and the more you know, the better you can protect yourself. If you are having foreclosure issues then it is advised you re-read through your mortgage documents and looking up what rights you have and ways you can protect yourself from having your home foreclosed on.
5. Seek help. Ultimately, there is only so much you alone can do. If it does not seem to be enough then you should seek out professionals who can help you out. In your current situation you may not want to have to pay any added expenses but the fee required may well be worth it if you are able to save your house.
Housing counselors are professionals and know the ins and outs of the trade. Utilizing their expertise, connections, and knowledge can make all the difference. So as much of a hassle as it may be, it is better then having your home tossed on a pre foreclosure homes list and being forced to live on the street.
The holidays are a wonderful time of year, often heralded as the greatest time of the year. It is a time of happiness and joy, where you and your loved ones can come together. But the holiday season is not without it's downsides either. As fun as it can be, it can also end up being quite expensive and so a lot of people find themselves Going in debt for the Holidays because of this.
Christmas is the main culprit for this financial fiasco during the holiday season. It is a time of gift giving and celebration. And people often spend way more then they realistically should. They want to get all their loves ones tons of presents, the biggest and the best. And because of those desires they end up going beyond their means and fall into debt.
In order to help you avoid debt during the holiday season, you should try to change things up. There are several tips you can follow that might help you keep your bank account in good order throughout the holiday season.
1. Make a budget. A leading factor in holiday and christmas debt is the fact that people find themselves not having as much money as they would have liked. They want to buy all these presents but find themselves strapped for cash, so they use money they do not have and end up Going in debt for the Holidays.
You should look at how much money you are making and budget out how much you can realistically spend without going into debt. And as much as you may want to go over that, you must ensure you stay firm and abide by your budget.
2. Create a list in advance. Many people wait until the holidays are upon us before going out and buying everything. They try to get the best deals and are drawn in by all the buzz. Instead of allowing yourself to be pulled in like that, take a step back and make yourself a list of everything you want to get this holiday season. Once you know exactly what you want, you can work with your budget to actually get it, ensuring you get the best deals.
3. Save up. In the months leading up to the holiday season you should try to save up. Using your budget to determine how much you can afford to set aside. This money should be kept safe until christmas time rolls around and it is time to go gift shopping. This way you know exactly how much you have to spend, and will not end up going over and falling in debt.
4. Avoid credit cards. Credit cards an annoying little thing that trap a lot of people in debt. This is especially bad during the holiday season as it allows Going in debt for the Holidays to happen even easier. If you do not have the cash on you, you should not buy it. Credit cards are there for emergencies and if you rely on them just to get a bunch of presents, you will end up with credit card debt.