![]() It will reflect on your credit report that you have chosen to close those accounts with a balance. Go ahead and call those credit cards companies and ask them to suspend your ability to use those cards while you pay them off. What you have earned is the right to have a financially secure future by making wise choices today.įreezing those credit cards in a block of ice might seem like an effective way to stop overspending your budget but in reality, ice melts… and so does willpower. ^^^That thought process landed us in bankruptcy!^^^ Oh, and while we are out, why don’t we charge dinner too? Haven’t we earned it?” Why don’t we take the credit card and you can blow $50 and I will blow $50. ![]() My husband and I would say, “Hey, it’s Friday night and it’s been a long week. As a result of the time you spend earning the income you receive each month, sometimes the temptation is to splurge on something. But, keep a focus on the future and the rewards that will result result from your hard work now.Īnother trick your mind will play on you… you have to reject the “I deserve it” lie. Yes, you might be stuck with a tight budget due to overspending habits in the past. If you have actually created a budget, that is AWESOME! Good for you.īut now, are you scratching your head and wondering how you are going to remain faithful to it. RELATED: How to Save Money on ElectricityĮvery family has “other” items that are unique, but these “other” or “personal” expenses should not eat the majority of your budget. You may not have all of these but include each that applies to your family budget. Include gas, water, electricity, garbage, and phone services under the utility category. However, debt consolidation is also an option. <<– That’s always my first recommendation. If you find yourself living with debt payments exceeding 10% of your income, it’s time to increase your income. As you consider using credit cards or making purchases with a loan, use this percentage to dictate the monthly payments you can afford. Make the decision now to start using credit cards wisely. What does that mean? We cannot afford additional debt. RELATED: 8 Simple Ways to Start a Savings Fundįor the majority of our marriage, our required debt payments has exceeded the recommended budget percentage. Whether you are saving for a college education or just building an emergency fund, have room for savings in your budget. But, regularly putting money into savings is a necessity. The idea of investing might be intimidating. Like going out to eat? Love the movies? Planning a date night? Stashing away money for vacation? Or do you like having cable television? Ouch! That’s a lot of entertainment in a small category, but living on a budget often means making tough choices. However, this category can also include gifts for special occasions such as birthdays and Christmas. As parents, my husband and I are striving to teach our children to be generous. We tithe to our church and give to the community as we feel God’s leading. The medical category is another expense than can vary greatly based on your family’s health, pre-existing conditions, eye glasses/contacts, braces, and regular prescriptions. If you need daycare, pay child support, or have tuition costs, choose a budget percentage that covers all of these childcare costs. I tend to lump home insurance with housing and car insurance with transportation, but you can interpret this as needed and can include life and/or health insurance. RELATED: 10 Best Tips for Saving Money on Groceries RELATED: 12 Free Apps to Save Money on Groceries I also include Amazon Subscribe & Save, cleaners, toiletries, paper goods, and school supplies in this category. This expense will vary greatly based on the size of your family and any special needs in your diet. If you are buying a car or just take the bus, all of your transportation expenses – including oil changes and gasoline – fall under this category. ![]() If your budgeted percentage for housing is surpassing 30%, you might consider refinancing your mortgage. Whether you rent or have a mortgage, the housing category should include all fees, taxes, and maintenance required for your living accommodations. Please notice that these percentages include a range since your family’s needs will vary greatly depending on size, location, and income level. If you are new to budgeting or just wondering how your family budget stands against the average US household, these budget percentages establish a guideline. It means that you need to start building savings so that you can withstand any emergencies that might arise. Oh, and just a note about budgeting… a surplus does not mean to go on a shopping spree. We even had to get rid of cable and smart phones one time because we could not afford them. Be ruthless if necessary and believe me, I understand the pain. If your expenses are higher than your income, make cuts.
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