Budget Is Not A Dirty Word!

I know budgeting your money can be a real pain - it's no fun and it's a sure dose of reality. But, you need to do it.

Why? Because if you are not employed, or close to being unemployed, you need to know where your money is going, first. And, second, you need to discipline yourself to live within the money you have. Since you don't have the same amount of money coming in that you had when you were employed - you don't have a pay check coming in - you need to determine what your current expenses are and then determine what you need to reduce.

I know I have written before about budgeting - but even if you are employed, you need to do it because you never know when you will be without a job.

Start with a clean sheet of paper. Divide it into four columns. In the first column list all of your bills from mortgage to insurance to food to EVERYTHING. Include it all. Go through your bill to insure you don't miss anything. Look at your bank statements to catch those atm withrawals and debit card payments.

In the second column - put in what your monthly obligation is to every debt. Even though you like paying more than the minimum amount, put in the minimum amount you can pay. Include food, dry cleaning, medication is you have any and on and on.

In the third column put in what you need to reduce the amount by in order to survive. Remember, we are talking about survival, here. If you need to, contact your credit card companies to determine what you can work out with them. Most of them will work with you, just make sure you call them - don't wait for the companies to start calling you. Just about all of them have a wide range of options to help you, and to make sure they get their money.

In the fourth column put down the new amount you are budgeting for the bill, obligation of item. Add it to see if you have reduced enough so you can cover your expenses for the next six months. If you still can't make it, go back and do it again. Look at food and insurance. When it come sto fod, start buying the store brands and use coupons when it makes sense. If you are comfortable with it, increase your deductible on insurance. By increasing your deductible, you will lower your rate.

Look at how much you put in for entertainment. Soemthing has to be there - you really will need the diversion. But, you don't need $100 per week - you can get out and have fun on $20 per week.

Keep at it until you get to a number in the fourth column that you can meet each month. It's not easy, and it's a reality check. Remember, you are in a new reality - you no longer have a job.

Budget worksheets are available for free on the internet, if you don't know where to get started. Google 'free budget sheets' and you will find several to look at. Find one you like and start using it.