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 When we get excited about saving money there are many things we can do to make a
big difference in saving our dollars.
First, the goal this next month is to spend less than that month's income.
For instance, Jerry earns $2,000/net per month. The couple's short-term
goal, therefore, is to spend less than $1,999.99 during that same month.
The next goal is to put enough money in savings over the next year (twelve
months) to be able to use last month's money to pay this
month's bills. This habit means that you are living on less
than you earn, are ahead of yourselves by one month, and are at the
beginning of financial stability. The second goal is to stop using any sort of credit cards now!
This can be done with "plastic surgery" (i.e. cutting up all the cards
but one which can be saved for emergencies). For the reluctant spouse, it
can be done differently. Put the cards in the bottom of a plastic carton,
fill the carton with water, and put in your freezer. The cards are
available, but only with great effort. The habit of paying cash for goods will save more financial problems than any
other discipline on a family's part. Just because we want it, doesn't mean
that we have to get it. When the pain of payment and the
pleasure of acquisition happen at the same time, responsible financial stability
has begun. Third, another goal is to set up a "standard" for spending.
In this way, much of the past financial stress will be eliminated. No
purchases are made without following the standards which have been agreed
upon. For example, a couple might set up the following standard while they
are in school. Each of them will get $25.00 in cash per month which they
do not have explain to anyone as to how it was spent. Each of them may
spend up to $10 without consulting the other (except for groceries which budget
money is spent within the allowance they have agreed upon). They will not
spend more than $100 without coming away from the store, discussing the purchase
in private, and agreeing upon where the money will come from . They will
not spend more than $500 without considerable research (i.e. consumer magazines
and summaries), seeking the advice of others who have used the same
product, and sleeping on it overnight. Fourth, the goal with the most work and a great deal of reward is to
learn to maintain a budget. Fifth, the final big goal is to begin a determined plan to rid yourselves of all
debt, including consumer debt, vehicle debt, and finally housing debt.
See Debt Reduction. Find more helpful ideas about budgeting and eliminating debt in Chapter 3,
"Finances" of "House
of Order" Handbook.
Also see:
Budget Binder, Debt
Reduction.
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