How do I even begin??? Please help!

lexiemery · **How do I even begin??? Please help!**

My husband and I really need to make some changes as to how we spend our money. Right now we basically live pay check to pay check with no savings to speak of. Our bills are paid each month and there is always extra money left over that we usually spend on eating out and doing fun things with the kids.

We rarely use our credit cards except when there is an emergency like the car needs repaired or to pick up whatever financial aid does not cover for my husbands school. We have been trying to pay off our credit card balance but just never seem to get it below our immediate goal of $3,000. Our real goal would be to have no credit card debt.

Other then our mortgage, car and student loans which are in deferment for another year, we don't have any other debt besides the credit card. The mortgage, car and student loans do not bother us, it is the credit card that hangs over our heads!

We have a budget with all of our bills. I don't itemize "everything" but any money that is not designated towards a bill goes in our "whatever" category and whatever is left over from that each month goes towards the credit card bill (along with the monthly minimum and at least a hundred or so dollars extra).

How do we get started???? I don't want the burden of this debt any longer and I need help in getting on the right path!

Thanks
Beth

crazykelly · 09-07-2007, 07:42 PM

well, as you said there is money left over that you're spending on the kids and eating out. i think you would really benefit from tracking your money....meaning really tracking - down to the last quarter where that "whatever" money is going.

i beg of you to start doing that so you can have some savings. i am a poster child now of why an emergency fund (1,000) and savings are critical...no we dont shop alot but we got 2 shocks of our lives in the past 6 mos money wise. my hub's paycheck one week didnt come - the company told its employees that there was a computer shutdown and that we would have to wait till the next pay period - so we had to wait a month to be paid. that threw us into financial chaos. thats a clear example of why living paycheck to paycheck when you really dont have to - is such a wake up call.

the second was when hub and i were on vacation and didnt communicate - so we BOTH paid the mortgage! so there was a double payment made, they wouldnt credit it for the next month and let me tell you, there was widespread panic in my home.

those are two classic reasons why you need backup - financial emergencies dont necessarily happen when one loses a job or gets sick or hurt. things out of the clear blue sky can happen and if you're not prepared, you'll be calling up family in tears and completely embarassed.

track your extra money and start putting some away! go to the lib and get dave ramseys book. good luck!

jen4 · 09-07-2007, 08:18 PM

It can be very difficult to know where to
start when you are in a tough financial
situation.
I was in credit card/ student loan debt
when I met my dh. He helped me get
it all straight and we have been very
good financially for several years.
First, every penny we made, we accounted for.
All credit cards were cut up and we will NEVER
own another credit card, EVER, not one!
We stopped going out to eat completely until
finances were under control. ONLY necessities
were purchased and only after all bills were paid.
It will take time and patience to "whittle" it all down, but
believe me, it works and it is worth it!!! Just don't let
it get you down, and don't give up on it! It will be
frustrating, but know that when you gain freedom
from the debt you will feel sooooo great!

Good luck!!

Kim · 09-07-2007, 08:20 PM

if you have money left over at the end of the month for "fun" stuff you're ahead of most in this game. The key is to start PAYING YOURSELF FIRST.

If you currently carry a balance on your credit card, figure out how much you can comfortably put towards paying it down and pay that bill first and foremost; no more eating out or splurging on the kids until it's taken care of. You're stealing from your own future and financial well-being when you do this. There are plenty of ways to enjoy quality family time without spending money (this site has plenty!).

It will be hard at first, but hopefully you will see how liberating not having the debt hanging over your head feels and you'll want to do more to pay it down. Once it's paid off, make it a priority to never carry a balance on your credit card from month to month ever again -- then you can start to build savings. Having an emergency fund does wonders for your stress level.

Best of luck to you!

ember15 · 09-07-2007, 08:57 PM

I guess the first step for me would be organization. I know where every penny goes. It is nice at the end of the month to look and compare. The whole tracking every thing gives me the information I need to decide where I need to cut back. I can look back for any time period and see just how much I spent on clothes for me, On food for the month.

Food is a big area I now save in Since joining Mommy savers I have cut $200-$300 off my food spending

For me I like to start with want vs need. Ask yourself at every puchase is this a want or a need. Even with little things Its I want to buy a bag of cookies and I need to buy a gallon of milk. Cut out the cookies

n_vizion · 09-11-2007, 04:48 AM

The things that jumped out at me when I read the post was:
1. Eating out
2. Spending money on the kids
3. Whatever category

I think that you can certainly find additional income to put towards credit card payments from these three things. You just need to tighten the spending up in these areas. Avoid eating out at all costs as much as you can until your credit card is where you like it to be. As you may know, eating out gets to be costly especially if there are four of you.

I'm not sure the age of your kids, but I think that you and your husband should get creative and find fun, free things to do with them. They will remember the experiences much more than the tangibles.

That whatever category scares me. See if you and your husband can budget that whatever caterogy into subcatogories of necessary expenses. Try hard to find additional money from that catergory to allocate to the credit card. As long as it is thought of as a whatever catergory, you will be more likely to spend it on whatever.

Last, think about how gooooooood it will feel to have no credit card debt. Use that as your ultimate motivation :happy dance: as you change your spending lifestyle.

Be blessed.

Cookie2 · 09-11-2007, 11:49 AM

I want to echo the advice on 'pay yourself first'. The reason you still have credit card debt is because you are still charging to the credit card ...

"We rarely use our credit cards except when there is an emergency like the car needs repaired or to pick up whatever financial aid does not cover for my husbands school. We have been trying to pay off our credit card balance but just never seem to get it below our immediate goal of $3,000. Our real goal would be to have no credit card debt."

Instead of paying extra on your credit card debt - for the short term - put a bulk of your 'whatever money' into a savings account. THEN DON'T TOUCH IT. When your husband has school expenses that financial aid doesn't cover, use your savings. When the car needs to be repaired, use your savings. THEN BUILD YOUR SAVINGS ACCOUNT BACK UP AGAIN.

At the same time you'll be paying at least the minimum on your credit card. As you continue to not use it, you'll be in a better position to pay it off.

It must be very nice to have a deferment on your mortgage and car payment while your husband is in school but those are both serious debts that are hanging over your heads. While you're not making payments, the interest debt is still accumulating - and compounding. Once you get rid of the cc debt, I strongly recommend that you eliminate the car payment - quickly. You may be in more financial trouble than you're willing to admit right now.

And do you have enough insurance? Auto, life, homeowner's, medical, dental, disability? You're investing a lot in your husband's future earning power but what is he can't earn that money in the future? There are all sorts of life events that can interrupt his ability to be fully employed, or even finish school. Make sure you have a safety net built around you. Insurance is a part of that. A healthy savings account, with investment portfolio is another.

Lastly, consider where you are in life. You're married with children. Even though your husband is in college, you're not young and just starting out either. Have you started retirement investing yet? If not, you're behind the 8-ball. The younger you start, the less you have to save later.

Adda15 · 09-11-2007, 01:30 PM

I agree with most of the comments that have already been stated.

There is one big issue that so many people have a problem with, although they don't always admit it. Please don't think that I am assuming you have this issue, but want to bring it up to possibly help other people.

So here goes: ATTITUDE.

I lived for years thinking that I did not have the cash to pay off my debts. I also thought that I deserved a certain amount of luxuries, standard of living etc. because we had good paying jobs. During this time the debts increased and snowballed again and again.

Once I finally got my head on straight, and REALLY decided enough was enough, bills were payed off, car debts gone, credit card balances gone. I changed my ATTITUDE to GRATITUDE and realized that material items weren't what mattered in my life.

I still use a credit card for EVERY possible purchase so I earn points, but pay the balance off in full several times a month.

I track EVERY CENT that is spent and could tell you in a matter of minutes how much I've spend on groceries, gas, entertainment etc. etc. since January 1st. This is a real eye opener. Don't assume that you know how much you are spending on groceries.

So, if you aren't already there, find the commitment, get your spouse on board (this is a must) and your off to the races....uhm but not to bet, only watch the horses hehehehehe.

GOOD LUCK!

Sarah_Mom2BrodyNMason · 09-12-2007, 05:41 PM

Quote:

Originally Posted by Adda15

I changed my ATTITUDE to GRATITUDE and realized that material items weren't what mattered in my life.

I LOVE THIS!!! That is just great!

Jellylou · 09-12-2007, 06:02 PM

I like these threads, they keep me motivated.