The Most Costly Expense Of All

Written by Terry Rigg

Do you think you have a lot of bills? If so, you are probably right. But have you consideredrepparttar bill that costs yourepparttar 143873 most each month?

On average your housing costs probably run about 30% of your take home pay. Your other bills which include utilities, credit cards, etc. also run about 30% of your take home pay. It probably takes another 30% to run your household and if you are lucky you can stashrepparttar 143874 remaining 10% in a savings account.

What are your percentages? Do you know? That'srepparttar 143875 problem. Most people run their budget out of their wallet.

There is that hideous word "Budget". Many people compare operating their finances with a budget to having a ball and chain attached to their wallet. They won't be able to get anything they want forrepparttar 143876 rest of their lives.

Let's see ifrepparttar 143877 following scenario fits you:

You get paid. You write out your bills. You give your spouse some money. You wait for next payday to get some more money so you can dorepparttar 143878 same thing.

You may not realize it but if you are doing this you are spending a lot more money than you need to.

Most ofrepparttar 143879 people I work with have no idea how much money they make or how much they owe. While money may be important to them it is way to much trouble to learn how to manage it. This isrepparttar 143880 very reason there were $1.5 million bankruptcies in this country last year.

I can almost guarantee that if you are trying to run your finances likerepparttar 143881 scenario above at some point you are going to run into problems. It simply can't work.

The main reason for this is that you never get a broad picture of where you are financially. You payrepparttar 143882 bills and hope you have enough money to buy your groceries and put gas inrepparttar 143883 car until next payday.

Most people can add and subtract. That's all there is to a budget. If you aren't willing to takerepparttar 143884 time then living paycheck to paycheck will be with yourepparttar 143885 rest of your life.

I call this "Financial Complacency" which simply means that you know you need to manage your money better but aren't willing to do what's necessary. Here are a few excuses I hear to justify this:

I don't make enough money. I owe too much to set up a budget. I'm not good with numbers. I just don't haverepparttar 143886 time to keep up with a budget. I can't get my spouse to work with me.

Living On What's Left

Written by Terry Rigg

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 maderepparttar 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 ofrepparttar 143872 other stuff that it takes to run a household. Do you have enough to pay this bill?

All to 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 aboutrepparttar 143873 same, you will always need aboutrepparttar 143874 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 andrepparttar 143875 money comes out ofrepparttar 143876 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.

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