I hope you have all enjoyed your weekend!
In addition to being in more than $8,000 of credit card debt, which I discussed here, I also have absolutely no budget, and am living beyond my means. I eat out, more than I should, I make expensive purchases, and have taken out several loans to make ends meet.
Before payday, I write down all my bills and total them up. At that point I determine if there is money left over. If there is great! Most of the time there is NOT.
Afterwards, I go back and determine what bills I can afford (but not really) to pay at a later date. Usually this is my utility, cable, and cell phone bill (which are also almost NEVER included in the bills that I have calculated).
As for this past pay period, my bills totaled about $1,500. I got paid about $1,600. I spent $372.39 on back to school shoes and clothing and now I’ll be pushing my light bill to the end of the month and putting my cell phone and cable bill on a payment plan. All of which will include late payments fees.
Each month I’m literally robbing Peter to pay Paul and it sucks. Not to mention, I usually do not have any money left between pay periods. Thank God for the side hustle that provides a little money on the weekends.
This has definitely been a wake up call.
Things I’m doing to improve my finances
- I’ll be developing some kind of budget sooner than later.
- Evaluate the “budget busters” and attempt to lower or eliminate them
- Incorporate “no spend” days to save additional money
- Pay bills on time to avoid additional fees
- Create a different approach to paying bills
- reduce money spent on eating out, I can’t afford it anyway
What was the wake up call for you? Do you have a budget? If so how is it working for you?