Consider putting all your debts into a debt consolidation agreement -
Stop buying on credit, and then put all debts into one consolidated loan. A debt consolidation company helps individuals pay off all loans in a matter of two to four years. They are experts at financial planning and budgeting and work out a more affordable payment plan on your behalf, which could be approved by all your creditors. This method not only relieves you of stress, but also saves fees, additional penalties, or accrued interests. These charges tend to surmount due to your inability to pay–off debts as they become due. However, it is best to ask the help of a company or professional that comes highly recommended or with good feedbacks elicited from forum sites.
- Put your bills under a system of automated payments -
Check banks for the availability of this service. In using this system, checking accounts or savings accounts are automatically debited for monthly bills like electricity, gas, cable, water, insurance, and debt payments. The system automatically earmarks fund deposits, thus giving you a form of restraint from spending money set aside for fixed expenses.
- Find ways to reduce the costs you incur on your property -
If you are currently paying a home mortgage, consider having it refinanced so you can work out lower monthly amortizations. Some homes increased in value recently and yours might be one of them, which could entitle you to lower interest rates. Check with your lender to see if you are entitled to rebates in case of early or prompt payments. This way, you can further reduce your amortizations. If on the other hand, the market value of your property decreased, check if your property was revalued by your tax assessor. You might be entitled to a reduction of real estate taxes.
If you’re renting and the cost is eating up more than 25 percent of your monthly income, consider finding a housing option that fits your earning capacity. According to the Census Bureau, the average housing cost experienced by households is 20 percent; hence, to go beyond this, means you’re paying more than the average.
- Find ways to reduce your car expenses-
If your car seems to be eating gas and generating high maintenance costs, consider sellingit. In budgeting, every dollar counts, and maintaining an automobile is recommended only for those who have a lot of cash to spare. This simply means feeding yourself first instead of spending money on a car.
- Find ways to reduce your insurance costs -
If you’re paying for several types of insurance, make a direct deal with an insurance company in the form of a package policy that combines all your insurance needs. Instead of passing through different insurance agents, reduce your insurance premiums by the amount of the agent’s commission added by the insurance company as part of your insurance costs.
- Be wary of memberships in wholesale stores, gyms and other subscription-based service facilities -
The key here is frequency of use and availability of products in order to benefit from this marketing scheme. However, if your use is limited by choice, by availability, or by the terms and conditions, you may be realizing a limited discount benefit. In fact, you may not even be realizing a total annual discount that would at least equal the annual membership fee you're paying.
If the younger family members feel deprived and still cannot grasp the importance of financial planning and budgeting, be patient and find cash to buy some of their wants by selling unused clothes, shoes, bags, equipments, gadgets, furniture, and so forth at auction sites. Manage finances further by divesting closets of things that have not been used for quite some time and make some money out of them. That way, instead of fretting about the small closet space, make more room by weeding out useless space-eaters.
Please be sure to check out the other tips and strategies in Bright Hub's collection of personal and household budgeting guides.
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