Yes, I’m in holiday mode already. But even after I Let Santa Help, I need less month or more cash if I’m going to survive the upcoming season. This article offered me 50 ways to trim the budget. I was ecstatic. FIFTY!! Wow! Must offer some new crevices to pull cash from; some new nooks and crannies to wrestle back a few bucks.
And, it did. Air dry clothes, open/shut blinds to regulate temperature, wash only full loads of clothes/dishes, raise your home/auto deductibles – easy fixes I don’t think we’ve discussed. Under food and transportation, we’ve covered most of those. Healthcare and Clothing offered some new insights. Personal insurance and retirement? I’d love to be worrying about saving $ there.
But it disappointed to. The 2006 stats show annual household expenditures of $62k with average income at $82k (gross.) 2006 stats also say 50% of Americans make less than $32k a year. That’s AGI folks, income tax $. That’s joint-return bucks. And, yes, I know all about deduction and shelters etc. that make Rich Robby look poor. But the reality is, the average American is strapped! He’s making $62k, which he doesn’t bring home, and living on $62k. No wonder we’re spending 120% of our income. No wonder the next crisis coming is credit card debt.
Gain what you can from this article, but if you’re drowning in debt, perhaps a free evaluation will be more useful. Debt counselors field questions from 9 – 9 ET Monday thru Friday. Post your question or learn from what others have asked. You might also want to check out this article on budgeting. Getting a handle on your financial crisis requires a multi-pronged approach:
- Know what you make
- Know where you spend it
- Slice and dice expenditures like a world-class chef does onions (yeah, it’s gonna bring some tears)
Until you match dollars out with dollars in, no fix will be long-term. Using credit cards for monthly expenses or 401k loans to pay off the credit cards you’re using for monthly expenses is simply a hiatus from facing the truth: You aren’t rich. You can’t live like you are. This holiday season is a good time to start putting that reality into action.
