Now that the economy is in an upheaval and everyone is worried about job security, rising gas and food prices, and trying to make ends meet I find my situation no different. I have looked at my life and found myself in debt (around 50,000) to totally clear myself of debt, that does not include my husbands debt. I was never taught to watch my credit report, how to manage money properly, or how to manage a budget or bills. I have received two pieces of advise: one from my grandmother "give God 10%, give the government their 10%, and save your 10% ever paycheck and you will never have any problems" the second from my father "Never take out a credit card". Now, neither one have I listened to, and I am struggling to pay my bills and have a family total of 7.
With this said, I am dedicating the next 6 months of paychecks to the above statement by my grandmother and digging myself out of the hole. Right now, I am behind in my rent and I am having to hand over my entire paycheck for the next 4 weeks to catch it up. That means I fall behind in my car payment, don't have the money to feed my family, don't have gas, don't have the money for electric bills, ect. So I am picking up extra hours to balance out the extra bills. Here is the breakdown of what needs to change:
It costs money to have cable or dish services. I cut out television about 8 months ago, I have found that my children have more of an imagination, the play more with their toys. I have more time to clean my house and spend time with my children. I also have more time to spend in hobbies I like such as cooking and doing crafts.
It costs money to drive a car. I have two bicycles sitting in my garage. This week, starting monday I will be taking my son to school via bicycle. Our house is about a mile and half from his school and I usually drive him, then take my daughter (her school is about 6 miles from our house) to VPK, and then my step daughter I take to school. If I eliminate taking them to school and use the bicycle I think this may eliminate my need for as much gas. My step daughter can ride her bicycle to the bus stop back and forth. I am also obese, this will help with my weight.
As far as groceries are concerned: Walmart will honor any flyer of a local competitor. I have begun using this and I have saved a lot of running from store to store, also I have saved money. Also coupons are a great deal, the paper cost 1.50 each but I save at least 20 dollars on my grocery bill, so it pays off. I buy my meat at a butcher, this ensures better quality and I find I am spending little more at the butcher (about 50 dollars a month) for healthier option. The place to cut the money is instead of going out to eat as much as we do, opting to do fun meals at home. Because I no longer have t.v. service, my children are interested in helping me in the kitchen. This means they are learning responsibility and how to cook. It is a fun way to spend time with them.
You have to enjoy life as well, even though I may not have the money to go out and do a lot of things, I have to make my own fun! So I will be looking for opportunities to create fun.
Bottom line: I have to change my lifestyle, but already I think this is going to be a good thing. My life is too preoccupied with modern convenience and I am paying a terrible price for it. I am loosing time with my children, I am obese and my health suffers for it.
SO here is where I am starting with my finances. No one likes to talk about how much money they get and where their problems are, but here I am happy to lay them out. You never learn what works until you openly state you have a problem and try to work on it. This is no where near all our bills that we owe, these bills are just the ones we have to pay in order to function. My goal is to be able to pay all of my (what I will call function bills) without difficulty and be able to have a little money left over in my pocket.
This week:
We owe rent - $1000
We owe car payment - $200
We need gas for the week - $80
We will get paid on Wednesday because Thursday is Thanksgiving. So our paycheck needs to be at least 1280. Our checking account is at $4.
My goal is to not overdraw my account this week as we have been surviving by over drafting the account but we are now handing fees to the bank, which sinks us into a larger hole. I don't think I am the only one who is dealing with this situation, but I am bound and determined to find my way out. The entire goal here is to be self secure and teach my children how to manage money, not to be rich or gain more money than I need. Money is just a tool.
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