Budgeting and Controlling Finances

**SomiticPit** · 10-03-2010 11:10 AM

Wow that title sure sounds BORING!

And I did not know where else to put this thread besides "Home and Garden" lol.
But really needing some advice on this!

I'm 22 years old, and I moved out of my fathers when I was 19. So I have been on my own for three years or so. Since I have moved out, my finances have started becoming more of a problem!
I used to have mad control over them, but now I feel like I can never pay a bill on time!

Since I have moved out, I have accumulated an uncontrollable amount of debt, or at least uncontrollable to me. I owe the cable company $630. I owe the electric company $550. I've taken out about $4,000 dollars in student loans, although I haven't had to pay those back yet because I am still going to school. I owe my dad $600 or more. I have a cash advance out in which I owe $330.

I managed to total my car which threw me way out of whack when it came to bills and money because I lost about 1,500 when it came to getting a new car and paying for towing and all that kind of stuff. And just here recently I had to break a lease, and so they will be charging me fees on that, but haven't received anything in the mail over it yet.

Soooo, I'm a little worried about it. It kind of stresses me out sometimes.
Good news is I just moved into a new apartment with my brother, where I only have to pay $187 a month in rent. It's the cheapest rent I've ever had to pay. And I have never owned a credit card and never will!!!

I just need some advice on how to maintain a budget without it being a desk job, and maybe some tips on frugality or how to pay off all this debt without feeling like my life is going to be deprived for the next few months. How do you take control of your finances when you feel like you are drowning in them?

**jns** · 10-03-2010 01:12 PM

Make sure you stay in school to finish your education, even if you have to reduce the number of classes and extend the time to graduation. The degree will make higher paying jobs easier to find. Make sure your grades are good, as that opens the door in interviews. Use the school resources for finding an employer. Staying in school also keeps loans from becoming payable until you have the resources to pay them.

Work out repayment with the cable company and the electric company. You have to pay a small amount each month to keep them from going to collections. They don't want to send them to collections, as they lose a lot of money that way. Make sure the interest they charge is reasonable. Try to keep your credit history clean for when you are back on your feet, you will be able to buy things on credit, like a new car or a house.

Talk with you father and ask for more time to repay the loan. Even give him a small amount each month so he knows you are not forgetting it. Maybe about $5 or $10.

Repay the cash advance as soon as possible if it has the highest interest rates.

Limit the money you put in the car for gas. Take public transportation places, if it is cheaper. Try to carpool with others.

Limit your budget for clothes, shoes and cosmetics. Go to used clothing stores and find never worn or lightly worn stuff for a deep discount. Even there limit how much you spend. Limit cosmetics and other personal care items except for essentials like soap and toothpaste.

Limit your food budget, by replacing brand names with generic or store name items. Figure out a less expensive cuisine of food you like. Don't go out for fast food very often. When I was unemployed for 4 months more than 20 years ago, I ate a lot of cream of tomato soup, since it was cheap and I liked it a lot, still do.

Cut and use coupons to reduce prices on name brands. Sunday papers usually have a lot of coupons. Get the paper a day old from a friend or neighbor. Be sure you still don't overpay and sure the item fits within your menu.

Shop for most items only when they are on sale, then buy a few more and have a stock of especially canned and dried food items. Only get some fruits and vegetables when they are in season.

Limit your entertainment budget, but don't eliminate it. Save up for what you want. It will be more special if you have to save for it.

Make good choices about everything. Be comfortable about your new life and you will not worry about money in the future.

**SomiticPit** · 10-05-2010 10:03 PM

Thank you so much for your response. This is the kind of stuff they don't teach you in school!

**jns** · 10-05-2010 11:09 PM

It's taught in school, the school of hard knocks. But it should be taught in public school.

**hoops** · 11-22-2010 01:43 PM

I like what jns had to say.

Great news that you do not have credit card debt. For many, it's a high interest rate that makes for a difficult hole to climb out of. Is there any chance for job at school? Sometimes working at the school library or something is a good way to make a little extra cash while in school. Other than that, just be mindful of spending during the holidays. Now is the season for people to splurge and too easily forget about budgets. Just be careful.

Good luck!

**CHANDLERS WISH** · 11-23-2010 02:55 PM

I always think, you view the total debt, in this case let's say $6000 and work out what that is per week, so around $120 per week, then work out how you can obtain that extra $120 per week, you've already downsized your rental, I don't know what you were origionally paying out but it was obviously beyond your means.

So, let's assume you actually have to earn $120 per week more now, with your other income what ever that is, to pay for your current rent and expenses..

Find a job that can assist in gaining that, open a new bank account for those monies to go directly into that account and divide each debt over a year, ie) $4000 debt equals ie) $80 a week, $500 debt equals $10 a week, and have the companies organise a direct debit to deduct those amounts on a monthly basis, s0 $40 for the $500 debt, directly from your bank account for a period of 12 months, off course if you earn more, you will pay across extra along the way to clear the debts quicker..

Most institutions will assist if something is set up in place...

CW

**sourpuss** · 11-27-2010 09:56 AM

Can you transfer your credit card balance to a card with a lower interest rate card? If you're like everyone else, you get a bizillion offers in the mail every week for new cards. Most offer 0% transfers for about 6 months. Transfer your balance but be sure to transfer it again before the rate goes back up.
Have you canceled your cable? I think you're going to have to hunker down for a year and do without some 'luxury items', cable being one of them.

**busy_mama_of_4** · 03-01-2011 09:46 AM

Good for you with no credit cards!!! That's great and keep it that way. I'm no financial expert, but I really like the advice that Dave Ramsay gives. Why not give him a call on his radio show? He might have some advice for you.

**rcoreyus** · 03-01-2011 10:35 AM

Look carefully at your monthly bills - they can really add up. I think of a monthly bill averaged over 10 years to be an equivalent purchase. So a $10 monthly bill is like buying something for $1200

Do you use your cable for internet? If not - do you really watch things on TV that you can't stream to your computer? Do you have any premium channels - if so would it be cheaper to rent movies?

Do you have a cell-phone and do you have the cheapest service for what you really need? Do you have cell and a land line - do you need both?

Are you careful with electric use? Turn off your computer and lights when you aren't using them?

What do you spend money on for entertainment? Everyone needs leisure in their lives, but are you getting good enjoyment for your money? You can rent a DVD for a lot less than going to a movie - may need to wait few months for the move to come out, but you still see it.

As far as managing the budget: you can make a spreadsheet that just has broad categories. Keep track of monthly costs. Then just divide other things into the big items: car, food, clothes, entertainment. See where your money is really being spent. The trick is not to try to track every penny, but to figure out where most of your money goes, and whether that is what is important.

Most important - finish school so you can get a better paying job and then this amount of debt won't be an issue at all.

**Seeker_Advice** · 03-01-2011 01:02 PM

Dave Ramsey dot com He also has a syndicated talk radio show where he talks to people just like you every day all day. I will STRONGLY suggest one of his books "The Total Money Makeover". You might also consider finding one of his courses that are normally taught at local churches. Find the talk radio station in your area, call them and ask them if he is on their station, if so, what time and listen, listen, listen all that you can.

He suggests, and so do I, that you put your debts in a row from smallest dollar amount to the largest (he calls this your debt snowball). Pay minimum payments on everything else while ATTACKING the smallest debt. ATTACKING means throwing ALL of the extra money you can at that first debt until it is paid off. Once you get that one paid off...attack the next smallest debt...get that one paid off then attack the next one.

Each time you pay off a debt, you "roll" that (payment) amount of money and any extra into paying off the next one, etc.

Forget interest rates and family vs non-family, etc. Pay the smallest debt off first...you feel a certain amount of relief knowing that one is gone, then two then three, etc. Call the high interest you are paying "Stupid Tax"...you were stupid and now you're paying the "tax".

The only time you're going to see the inside of a restaurant is if you're working there as a second job.

Find his talk show, check out his site, read his book by checking it out from the library (NOT buying it) and follow what he says.

He has helped millions of people and he can help you too.

Good luck!