(Don't) Create a Budget
The simple approach to managing spending is understanding where you are so you can change your behavior.
10/10/2011 08:12:36 AM
The approach described in the article can be followed if you have 1 checking account or no checking account. It's how you divide up your funds once a month or with each paycheck. I would also recommend, if you can do this, get credit card debt paid off as quickly as you (don't just pay minimum payments). Fees can get tacked on so easily and increase card debt balances pretty rapidly -- if a payment is late, if you go over the card limit, etc. Also figure out a way to build some kind of emergency reserve or "rainy day savings" fund -- even if it is putting away only $15 here or there, having a garage sale and putting that money into your savings fund, living on one spouse's income and banking the other spouse's income, etc. I do know how hard it is to be poor, alone, scared and struggling to make ends meet! But I do agree with the author and I think many people are so accustomed to using their plastic and buying with a "need or want now" mentality, they really don't know where their money actually goes. Those that have no money and who are trying to find jobs or start a business -- know where EVERY penny goes, i'm pretty sure!
10/10/2011 02:46:40 AM
There's one major problem with that plan: How many people these days can afford checking fees for three accounts when they're struggling to feed their children and keep their homes?