Monthly bills got you in a bind?
Do you ever feel as if all your money is spoken for before you even get paid? Are you worried that you may not make all of your payments this month? Let's find out exactly how much you've already committed to.
Make a list of all those payments you're obligated to pay every month, (rent/mortgage, car payments, insurance, loans, credit cards etc). Just the things you HAVE to pay. If you joined us in the first blog, you should already have this.
Now, add it all up and divide that by the total amount of your household take home income. Now multiply by 100.
What did you get? This number is the percentage of your money that is spoken for. Is it more than you were expecting? Is it more than half? If you are like most of us, it is. In fact, it's way more.
And what's left is what you have for savings, emergencies and just everyday spending like movies, shopping, weekend getaways, even a down payment on something you've had your eye on. Life.
So what do you do? Before you sign on that dotted line and commit to any more monthly payments, think twice. Next, work toward reducing the payments you have. Your goal? Let's get that percentage down to 50%. So when you get paid, half is yours to save and spend.