I need help making some decisions, is there anyone here who can take the time to help, someone who is NOT in debt… someone who has recovered from debt.. thanks!
Hi, I am currently debt free except for my home. I have lived through mounds of debt and using most of the principals that Dave Ramsey teaches, I was able to get my life, and the life of my family straightened out. I would be happy to help you with any questions. Besides, it also gives me some practice.
I would love advise on how to stretch my paycheck to start saving money every pay day.
The best advise I can give you is the dreaded B-word! Budget Budget Budget.. or a cash flow plan if that makes it easier to swallow. But really, the best way to make money go further is to have a plan for that money. Back in the day I would use my debit card, my credit cards, or cash on a whim, with no idea where it went. Sit down for dinner at a dinner, stop for taco bell the next day for lunch, buy a new game here.. next thing you know, I’m like huh, where did my money go???
You have to sit down before each month begins and decide where the money is going the following month. I had tried to sell the idea to a young guy I used to work with and I’ll try to make the same point here. A budget doesn’t mean you can’t do what you want. On the contrary, it means you can do whatever you want as long as plan it out. If you wanted to put $200 a month towards comic books, you could do that, as long as you can afford it which leads me the next point, you have to be honest with yourself. You have to realize what is do able and what is not do able.
I don’t want to see a budget with $200 in restaurants when you’re only savings $50 a month and you have no emergency fund built yet. The next part is about discipline. If you have no disposable income, (income after you meet all needed expenses) then you have to look for ways to cut corners. Do you need Starbucks coffee every morning? Can you only eat lunch out once per week? I don’t know your situation, but I think those two examples can get you rolling. I play a game called City of Heroes which cost me $15 month, not much, but when coupled with Netflix, that saved me about $35 per month when I stopped them both while getting out the hole.
Now for the last part, you must making savings a priority in your heart and mind. It should be taken right off the top, almost like it’s not part of your income. If each paycheck is $600, make pretend it’s $550 and have that $50 automatically put into another account. I love those auto transfers, they really help! Well, I hope that helps you and if you have any questions about what I typed or of any other nature please go ahead and ask.