Quote:
Originally Posted by tada
But let's be real. Even with a written, tight budget I try to keep, I find expenses that I did not count on, that limits my payments to the credit cards.
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Two years ago I read Total Money Makeover by Dave Ramsey. Dave is one of the financial gurus that people either love him or hate him. Anyway, his plan is in "baby steps" and the first baby step is to put $1000 in the bank as an emergency fund. This would be used to cover expenses that are EMERGENCIES, not "ooooh, there's a Wii! I better get it while I can!". This would help in the situation you mention above.
Another thing that would help is if you create a budget. I'm a HUGE fan of Quicken and using it to track how all my money is spent. Regardless of how you do it, you need to see where all your money is going. Once you have a trend (about 3 months would be a good start) then you can use that information as a solid basis for a budget. If you have bills that occur less frequently than monthly (quarterly, annually, etc), remember to put money back for those bills too.
What I've done is when my husband gets paid (monthly) I send my budget money to HSBC. That way it's out of my hands, harder to get to, and earning 5.05% while it sits and waits. But when the bill arrives I know I have the money already saved and simply move it back to my checking account. The peace of mind this provides is priceless.
Good luck and keep posting!
kelly