| October 2008 |
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 For those on a tight budget, ghouls and goblins are a real treat compared to the frighteningly high prices out there. Are rising health insurance costs, gas prices, and mortgage interest affecting your budget? Unfortunately, unlike on Halloween, you can't crawl under the bed and wait until November 1. This month, face your fears and readjust your budget in three easy steps.Step 1: Dust off your budget. Those who are serious about minding their money have a budget. Hopefully, you updated yours last January. But if you're like most Americans and don't have a budget, there's probably never been a better time to build one. List all your monthly expenses, including groceries, dining, entertainment, housing, clothing, cars, gas, insurance and so on. Include regular payments toward savings and paying down debt. Total up your outgoing obligations. Then, using pay stubs, calculate your precise after-tax income. If you're doing things right, the two amounts are equal or you have more income than outflow. If you don't have a budget, click here, for a free Adobe pdf budget calculator from your friends at American Debt Counseling, Inc. Step 2: Identify any changes. Perhaps you last looked at yours in the beginning of the year, but unless yours is only a few months old, it's already out of date. If you buy two tanks of gas a month, you're probably paying $30 or more a month than you were in January. If your employer increased the employee contribution $25 per pay period, that's $50 a month. If you have an adjustable rate mortgage, you are now paying more in interest. All of these things can short-circuit a budget. Step 3: Find the money elsewhere in your budget. If you have a blown budget, you need to bring it back in line. The good news is there are limitless ways to squeeze some money from somewhere. You can ask for a raise. You can work some overtime. You can get another job. Or you can adjust some of your spending. We recommend starting right at your budget. Can you buy less-expensive groceries? Can you eat out less? For savings ideas visit this month's Savings Section and past issues of Debt Matters. |
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