Getting out of debt, and saving money.
 

anyone have any tips on this? Any online sites that can help me create a budget or tips in creating a budget myself? Right now I live with someone and so rent and utilites are cut in half, but that may be changing and I'm pretty scared about how I will pay for things when I'm barely making ends meet now. ( I have a CC bill sitting at around 2000.00 ) Will I be able to set a budget and stick to it, and be able to live on my own AND pay all my bills, will I have to look into a 2nd job ( I hope not, but I may have to, and have been thinking about it )

Guess I'm kinda looking for some responses from ppl who know of sites that may be helpful, or may have gone through it themselves, had to get a 2nd job, etc?

Thanks everyone.

Your local library should have some Dave Ramsey books. He's a bit brash, but gives good advice/ideas for getting and staying debt free. I'd definitely recommend reading anything of his you can get hold of.

Online, try googling for a site called "organizedhome". If I'm remembering right, there was some good info on that site for budgeting/financial planning.

Good luck!

Suzie Orman always sounds encouraging... I think she has a new book out.
I took a 2nd job specifically to pay down debt... its worth it... re: a 2nd job, I would get out there now before the 'kids' get out of college etc... part time jobs are becoming very diff to get, because everyone is snapping them up... they're in the same boat we are, I've been looking to change my PT job, not much around.... at least that's the way it looks around here in New
England ... Good Luck

My hubby and I are just about to start envelop budgeting. That is where you budget a certain about for groceries, entertainment, clothing etc. etc. and put that amount into each envelop. Once the envelope is empty then you have no more money to spend for that month (or week...depending on how you set it up).

I have also heard that Dave Ramsey has some really great book with great advice too.

My husband and I are currently going through Financial Peace University. It's part of Dave Ramsey's financial training. I'm loving it and we're finally seeing a bright future (We're about $85,000 in debt including student loans). Doing a google search for him should lead you directly to his website. Although, I should warn you. His radio show and tv show are fairly "unbiased", but his books and training courses are biblically based and he references it quite a bit. I know that is an negative for some people. I also like Miserly Moms and Stretcher for free money saving tips and tools.

We operate on a monthly cash flow budget that balances at $0 at the end of every month. We use the envelope system for pretty much everything that isn't fixed or a "bill".

For my "second job", I operate a direct-selling business. That's nice because I make as much money as I want to work for and I also get to set my hours. It may be worth looking into, but I wouldn't get involved in anything that requires you put a bunch of money up front. I paid $10 to start my business and make an extra $200 - $600 a month.

Good luck finding something that works for you!

I miay be interested in the direct selling business. Can you tell me more?

I HIGHLY recommend this site. It is a group of people following the Dave Ramsey method of getting their finances in order and it is FREE unless you want to contribute. Everyone is very helpful and will tell it lke it is...they will answer questions, give advise etc. You can post your budget and they will help you find ways to cut back so more can go on your debts.

http://www.livinglikenooneelse.com/

Originally Posted by Sweetcaroline:
Suzie Orman always sounds encouraging... I think she has a new book out.
I took a 2nd job specifically to pay down debt... its worth it... re: a 2nd job, I would get out there now before the 'kids' get out of college etc... part time jobs are becoming very diff to get, because everyone is snapping them up... they're in the same boat we are, I've been looking to change my PT job, not much around.... at least that's the way it looks around here in New
England ... Good Luck

Can I ask what kind of 2nd job you took? How many hrs a week is your 2nd job? How many days a week? Right now I"m trying to find something around 15 hrs and a couple days a week and maybe one day a weekend. Oh, and one I don't have to put forth too much thinking. I do that a lot at my full time job. :) I"m thinking like coffee house, book store, video rental place, movie theater, sales clerk at target, or some other store. Kinda a place where I can work with ppl around or close to my age.

and that you all SOO much for the input so far. I'm going to look into all of these things. I feel like right now I am able to keep my head just above water, but if I end up living on my own, I'm gonna need to either get a 2nd job, or create a very tight budget, cause I'd like to save money as well.

My dh & I have thje save the "5's" method. We save every $5 bill we get. We put a down payment on put house with 5's, we went to vegas for a week with 5's we took my mom & her BF on a 3 day trip just on 5's and yes we have used them to pay off debt as well as buy something we really want. To me they are a small enough amout that you want miss to badly yet big enough to add up over time. We are currently doing the 5's method for our Keys vacation in may.

I was given this method by my real estate agent when first started looking to buy a house 5 years ago.

You will find what works for you. Good luck!

Are you still creating debt?

One thing to do is stop using credit cards unless you can pay off the balance every month. I've heard of freezing your credit cards in the freezer (grape juice so you can't even see them). Pay cash for everything for a while.

Definitely write out your income and then write out your fixed expenses. Try to minimize expenses as much as possible.

One cute and simple book is 'The richest man in babylon'. It tries to tell an anecdotal tale on how to deal with debt and saving.

Write down every single expense, every single day, at least for a month. Be honest. This will help you track down where all the money is going.
Are you buying any fast food? Paying any banking fees? Paying fees for withdrawing cash from an ATM that is not your bank's? It all adds up.
Any Starbucks (or other coffee stores)? If you cut all those expenses, it could mean a significant boost to your budget. Make all your lunches / snacks so that you always bring your food with you so that you don't have to buy anything.

I would concentrate on repaying the $2000 CC debt, because it is costing a hefty interest.

Originally Posted by nelie:
Are you still creating debt?

One thing to do is stop using credit cards unless you can pay off the balance every month. I've heard of freezing your credit cards in the freezer (grape juice so you can't even see them). Pay cash for everything for a while.

Definitely write out your income and then write out your fixed expenses. Try to minimize expenses as much as possible.

One cute and simple book is 'The richest man in babylon'. It tries to tell an anecdotal tale on how to deal with debt and saving.

I do still use my card. It's more of a handy thing though. Get gas, just swipe the card, get groceries, swipe the card. I have taken steps towards paying it off, I have sold all my books and all my CD's and a lot of clothes on ebay. I have even found myself going to goodwill to find books I want to read, read them, then sell them on ebay. This has helped when I was low to pay rent. I do have a small savings, and really don't want to take another hunk out of it to pay off my CC. I just took 3500 out to pay off a big chunk of it. But maybe it would be better to take out another 2000 and just pay the sucker off.

My worst stress I have right now is when my roomy comes to me and says she is moving out and finding a way to pay dbl I am now when I can barely make ends meet now.

Originally Posted by BornToFly:
I do have a small savings, and really don't want to take another hunk out of it to pay off my CC. I just took 3500 out to pay off a big chunk of it. But maybe it would be better to take out another 2000 and just pay the sucker off.

Unless the interest you are earning in your savings account is *more* than the interest you are paying on your credit card, it makes no sense to not pay off the debt if you can.

And if the savings rate is higher, please let me know what bank this is LOL!

I would suggest maybe using a debit card rather than a credit card to pay for stuff. That way it is like using cash - and there won't be any temptation to put off paying the bill when it comes. This is what I do. Credit cards are for emergencies only (serious emergencies), if I don't have the cash to cover something in my bank account - I don't buy it.

Originally Posted by fiberlover:
Unless the interest you are earning in your savings account is *more* than the interest you are paying on your credit card, it makes no sense to not pay off the debt if you can.

And if the savings rate is higher, please let me know what bank this is LOL!

I would suggest maybe using a debit card rather than a credit card to pay for stuff. That way it is like using cash - and there won't be any temptation to put off paying the bill when it comes. This is what I do. Credit cards are for emergencies only (serious emergencies), if I don't have the cash to cover something in my bank account - I don't buy it.

I feel so guilty whenever I take money from my savings. That isn't for regular day things. I worked so so hard to build it up, and had a pretty nice cushion for someone my age ( at least I thought I did ) and then I had to take 500 here, 500 there, then 3500 to pay down my CC. Whenever I trasfer money from it I just feel like such a failure cause it's not there for that.