Today, I started thinking of some of you lurkers out there. I don't know who you are, or what your situation is. I'm guessing you are here for some reason. If you are struggling and looking for answers this is a great site, with plenty of opinions and advice.
I have to tell you that starting an emergency fund was one of our first steps as a married couple. We had our $1000 in gifts from our wedding. Sure we could have spent it, but we saved it. I guess after getting so many gifts, it didn't seem that we needed to buy anything!!
We weren't big credit card users, since my husband had just ended a business started on credit cards. We had plenty to pay off let alone adding money to it! And, boy did I want to get that debt paid off as quick as possible!! It wasn't even mine...well, until the 'I do's', but I wanted it gone.
So, if you are struggling where to start here's my simple advice since it worked for us.
1)Establish a small emergency fund.
2)Stop using credit cards.
3)Pay off debt
Okay, there are some things you need to do to be able to even make those three things work. It's really important to save small amounts of money. Did you get $20 from your mom as a gift? Save it. Did you get a tax refund? Save it. Did you get rebate in the mail? Save it. Get the point?
You also need to go through your spending. Everything you spend money on. Magazines. Caller id. Newspapers. Coffee. Insurance deductibles. Beer. Wine. Cable TV. Do you buy your clothes at the mall? Stop. And stop going to the mall for entertainment. Look at EVERYTHING! Maybe there's an alternative. Maybe you stop an expense for a period of time, until you reach a financial goal. Maybe you need to call your credit card, phone or insuance company for a new rate? Maybe. You won't know unless you call. Lower your spending and save it.
So, you went through your expenses. You have made some changes. Great!! But now, do it again. Really. Keep looking at what you can change. You can change more than you think you can. Think outside the box.
But, remember, SAVE the money from these changes. This money is your safety net in hard times. You have to have it.
Once this money is saved up from your emergency fund you can start applying this new found money towards debt. Yes, even that birthday money...the credit card company gets that too.
Start saving, make a plan, and tweak it. You can do this. You can save money for an emergency fund. You can pay off debt. The feeling of paying off debt is freeing. Really freeing. Just how bad do you want it?
Good luck!! I'm rooting for you.
Are You Just Beginning?
May 13th, 2009 at 04:05 pm
May 13th, 2009 at 04:11 pm 1242231115
May 13th, 2009 at 04:43 pm 1242232985
May 13th, 2009 at 05:13 pm 1242234799
I would also add that the freedom I experienced was a lot less stress and a lot more open communication with my wife.
And for those still thinking you can't do it, this is a great site for support and what's you alternative?
May 13th, 2009 at 05:27 pm 1242235664
May 13th, 2009 at 05:36 pm 1242236183
It was almost kind of embarrassing the way I stumbled around, and yes, these advices will get you started out much quicker than I did. Heh.
May 13th, 2009 at 08:23 pm 1242246204
May 14th, 2009 at 02:54 pm 1242312856
May 14th, 2009 at 06:16 pm 1242324970