| Terry Rigg is the editor of the Budget Stretcher Newsletter. The
Budget Stretcher Newsletter is published monthly and is loaded with
information that will save you time and money everyday. Go to
http://www.homemoneyhelp.com for more information. |
Are
you one of those people that pay your bills no matter what? That is
an admirable trait to have when managing your money. You made the
bill and you feel you are responsible for paying it. Good for you.
Now let's talk about how much money
you have to cover your household expenses after you pay all of those
bills. Your household expenses would include your groceries, car
gas, school lunches, and all of the other stuff that it takes to run
a household. Do you have enough to pay this bill?
All too often, people tend to pay
their bills and try to live on what's left. This never works unless
you have enough money left to cover these at home expenses. The
grocery bill will always run about the same, you will always need
about the same money for gas, etc. In other words, you need enough
to live on.
I have seen this time and time again.
Another bill is made and the money comes out of the household budget
because there is no money available in any other category. Then what
happens?
Many people resort to using their
credit cards to cover their regular expenses. Since there is no
other money available to pay their increased credit card payments,
that also has to come out of their household expenses.  This is how
many people find themselves in over their heads.
There is only one way to change this
cycle. You have to allow enough money in your budget to cover the
things you need. You must do this even at the expense of your other
bills. That could put you in a position that you can't make some of
your payments, but at least you won't be increasing your debt,
except for possible late fees. If this is your situation, you need to
seek help to reduce the payments on your other bills.
Naturally, there are many ways to cut
your household expenses that will allow you to pay more toward your
other bills. You can save a lot of money on groceries by using
coupons, buying generic, not using processed foods, etc. The
internet is full of ideas and tips to help you save. I would start
by visiting The Frugal
Shopper.
When you develop or revise your
budget, always put the emphasis on your household needs. Once you
have determined how much you need to get by, then you can see what
is left for other bills.
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