Jenny--you are right, get a budget and stick to it! Then budget as much money as you can towards getting rid of debts!
Actually, I believe a good plan is to get a budget, preferably something that is all-cash, so you can see where everything goes and FEEL the money slipping out of your fingers
(easy to track credit purchases, harder to limit) Use envelopes! Beginning of week/month/whatever, put in your budgeted amount. When it is gone, it is gone. If it's left over, either put some away in a "my special reward spending cash" envelope, or pay off debts! (perhaps split it up?) Make sure you budget money for an emergency fund. Once you have about two months salary in the emergency fund, start paying off debts as ridiculously fast as you can!
Goals:
-set a limit by putting only so much cash in each envelope, when it's gone, it's gone. Any money you spend under budget either keep as a reward for spending cash, or put towards debts, etc. Come up with a plan for it.
-emergency fund. 2 months salary minimum, when you can, bump that up a little. This is saved money that is very very easy to get at. Maybe put it inthe bank, but you want it liquid!
-pay off debts!
-invest 11 percent. If you invest 11 percent of your income, statistics say you will be rich one day. Seriously, the dividing line between millionaires and wannabees is about 11 percent. Save more if you can, save less never! 11 percent. 11 percent. Stocks, bonds, IRA's, T-bills, whatever, but invest it! Groups like Vangaurd make it easy, just write them a check every month and they invest it in many places for you. Don't only invest in one thing--"divide your investments unto seven, even unto eight, for who knows what tragedy may befall the land?" -Solomon. Invest some in foreign currency, some in stocks, some in bonds. If stocks go up, bonds fall. If bonds go up, stocks fall. Invest a set percentage in each. When stocks go up (example), then you make money, and now you have more money in S than B, consequently, a higher percentage of your savings in S than in B. Use that extra percentage to buy B, becuase they will be cheaper, and then will appreciate. Then reverse
simple concept that no one understands. 11 percent!!!!!!!!
Catherine, I really wish you wouldn't change your avatar so often. On one hand, your pictures are beautiful but on the other hand I never know who the new picture is!
Guessing you are over the flu which I used as an oppurtunity to rant about my own family's past illness, and glad for it. I wouldn't wish a stomach flu on anyone, not even Bin Laden! (I'll wish many other things for him but never the stomach flu!) The only thing worse than a stomach flu is someone who retires with debts whose never saved in his life and has no emergency fund and his budget begins with V and ends with A.
