How to Manage Your Household Finances Effectively
Not sure how to best to manage household finances? Have you found yourself in seemingly insurmountable debt? Are you swamped with bills and credit card debt? Is the money in your bank account quickly dwindling into nothing? Follow the tips in this article to get your home finances back on track.
Other People Are Reading
Instructions
-
-
1
Stop spending money now. That's the most important thing you can do at this point. That doesn't mean you stop paying for water and electricity; rather, it means, stop spending money on things that are not life-or-death necessities.
-
2
Return recent purchases. Yes, it's embarrassing. Yes, you don't really want to take it back. But that new sweater or waffle maker isn't going to pay your credit card bill.
-
-
3
Get a checking & savings account, if you don't already have them. Check cashing services often charge you a fee or take out a percentage of your paycheck to process the cashed check.
-
4
Stop using cash advances. If you need fast money, then either get a second part time job, if possible, or do odd jobs such as babysitting or mowing lawns. As an adult, it may feel demeaning to do jobs you once may have done as a teenager, but there's nothing embarrassing about working to get yourself out of debt. If you don't have $100 now, chances are, you're not going to have the $125 necessary to pay back the cash advance place when needed.
-
5
Collect together all of your bills. Usually there is a Customer Service phone number printed on the front or the back. Call the number and request to speak to a Supervisor. It's important to speak to a Supervisor because floor agents typically cannot do anything to help you.
-
6
Explain to the Supervisor that you are having financial problems and ask them if there is anything they can do to help you regarding the billing amount. If they can't lower the bill amount or extend the payment date, don't get hostile, and don't argue with them. Simply thank them for their time and hang up.
-
7
Cancel any subscriptions you may not need. If you are signed up to NetFlix, World of Warcraft, etc, call them or go online and cancel your account.
-
8
Write down all of your monthly expenses. This will tell you how much money you need to save out of your monthly paycheck every month to pay your bills.
-
9
Calculate how much is 5% of your monthly paycheck. To do this, multiply the amount you make each month, minus taxes, by .05. For example, if you make $1000/month, $1000 x .05 = $50. This 5% should be put in your savings account every month. If you can afford it, increase it to 10%. This money should be for your retirement.
-
10
Save all of your receipts and deposits. Write down the totals in the register of your check book. This will allow you to keep track of how much you're spending and how much is left in your checking account at all times.
-
11
If you intend on purchasing something, make sure in advance that you can afford it. The key to staying out of debt is to have all of the money you need in advance to pay for something before you buy it.
-
1
Tips & Warnings
Save every penny you have. Don't ever buy anything and tell the cashier to "keep the change". Even 10 cents a day for a year is over $30.
Do your research before using any debt counseling services. A lot of them are scams and will only rip you off.
