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Guidelines for a broke person

what to do if we are broke? what steps we must follow to get back on track.? I live in an inflationary economy not in the US. I pay pretty much all the bills and my husband is very disorganized with the money he earns. We need help I´ve reached my limit. Right now I´m paying little by little and mostly on time and a bit more than the minimum required by the credit cards companies. Please guidelines, Thanks coaches!


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The journey to an improved lifestyle begins with the first step.

Confident Lifestyle 

Confident Lifestyle Blog 

Tiptop Server 

 

The first thing you need to do is to set up a budget and stick to it. Yes it will be hard in the beginning, but if you stick to it you will see results before you know it.

I am going to provide you with a couple of free e books that will help you set up a budget, how to legally improve your credit score and how to raise some cash in an emergency.

Please feel free to read as needed and download if you so desire.

Here are the links for you:

http://confidentlifestyle.com/Documents/family_budget.pdf

http://confidentlifestyle.com/Documents/fix%20credit.pdf

http://confidentlifestyle.com/Documents/emergencymoney.pdf

And for good measure I am giving you one on setting goals.

http://confidentlifestyle.com/Documents/goals.pdf

It is tough, but I have complete confidence in your ability to follow through. Just asking for help is the first step to becoming succesful at what youu need to accomplish.

Good luck and best wishes.

 


Posted 11 months ago ( permalink )
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467 thumbs up
I am your worst nightmare. An intelligent smart arse.

i agree with tip and must say that i have reviewed the links he mentions above and they are well worth reading. i have even downloaded a couple for my own personal use. thanks tiptopmanager for sharing those

the key is to set the budget and really stick to it and to also pay down those credit card debts as fast as possible along with setting some funds aside for an emergency.

take care


Posted 11 months ago ( permalink )
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Ok, you have to take all the credit cards and just store them away.  In your safe, put them in a cup of water and freeze them, whatever it takes to make it inconvenient to use them.

Next, you better learn to live on pure cash.  Here's why: if inflation is brutal in the country where you live, the credit cards interest will always be higher than the rate of inflation.  You will never catch up if you can't learn to survive on pure cash.

The best way for cash-living is the following:

1.  Go over your finances for the past year...such as what you spent everything on for your credit cards, debit statements, etc.  Find out what was a fixed or variable cost.  Fixed is what you have to pay no matter what:  rent, mortgage, heat, etc.  Variable is stuff that just seems to fluctauate week by week, month by month.  Then tag each expense with what seems to make sense as a general category:  a restaurant is eating out, clothing is clothing, the movies are entertainment, etc. 

2.  Eliminate from 1 what you can.  Do you really need new earings?  Reduce what you can.  If you know you spend x amount on clothing, do you need that much clothing?  Can you just cut the amount down, and even better, buy it used.  -

3. Take a deep breath.  Take 10% of your paycheque and put it aside in an account you will not have access to.  Chances are you use the credit card for emergencies that you need to pay for the next day, etc.  Or you might want to retire.  Who knows.  But here's the part that is important:  you will use this "float"  for the emergencies of life that come up. 

4. Everything that is remaining, put towards the credit cards.  Even better, get a line of credit, and transfer the balance to that.

 

5.  Live on cash only:  draw that budget it up, and put the money in each budgeted area, whether the money are stored in jars, or in a folder.  Live straight cash for all your expenses, excluding mortgage and credit card payments.  Feel the money and feel it slip through your hands as you have to pay for things.  You will certainly be less willing to spend if it isn't made as easy and you can see it disappearing right from your hands. 

5. Start your spending journal for yourself and ask your husband to have a spend journal as well.  Everytime you spend something, record it in the book.  At night, put in your entries of what you spent that day and review it.  Ask your husband to review his too.  You will probably come up with some great feedback for yourself.  You can even write down goals for the next day.  But remember: record every penny:  coffee bought in the morning, bus fare, gas, etc.

6.  If you have a house, apartment, or large goals: project how much that would cost you right now.  Want to go around the world?  2 years of not smoking will pay for it.

7.  Have fun with it.  It's money.  Value your friends and family. 

 


Posted 11 months ago ( permalink )
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