Maxed Out Credit Cards

Credit cards have been the financial downfall of many people.  These little squares of plastic make it so easy to have those things we want even if we don't need them.  Before we know it, we have maxed out the card and now have a huge monthly payment to make.  If past payments have been late, your interest rate has gone up causing you to pay even more for those things you purchased. 

That interest rate might scare you at first but there is a way to lower it again. Making your payments on time is one way to show you are serious about repairing your credit score. After a time, you can make a call to your creditor and ask for your interest rate to be lowered.  You will find some companies will work with you and others will not. Be persistent and call again after making on-time payments.  Eventually you can get them back down so you have lower payments. 

In the mean time you can change your spending so you can pay more toward your bills. Saving money can be done by using coupons and discounts when you purchase things so you don't pay full price. Begin with a search on discountvouchers.org to find discounts on things like food, clothes, books, electronics and many other items. 

Preparing for Unexpected Expenses

Life is actually pretty predictable once you’ve looked through all the possibilities it can give you. In other words, expenses are only “unexpected” when you’re naïve or in denial.

You can plan your life on a strict and straight cut budget that fits your income like a glove. This can work for a few months until you encounter “surprises” along the way. How do you think you can dodge them?

You can’t. The thing is you’re unprepared for “unexpected” expenses in the first place because you’ve failed to face them head on. All you can do is to be realistic: these are not surprises at all. They’re only overlooked aspects in your budget plan.

Emergency Funds

Every time you draft your budget, you need to set aside a little something for “maintenance” so to speak. This can be a fraction of your income that’s reserved for sudden hospital bills, car maintenance, and house repairs.

Life Events and Seasonal Expenses

Birthdays and weddings aren’t exactly unexpected. These are things that you usually plan ahead for. This means that if you see them coming around the bend, you need to find extra sources of income to fund the occasions. Christmas comes every year, so you should have already thought about saving enough for gift and holiday funds for the family.

Consider insurance plans

It’s impractical for you to entrust your family’s hospital bills on savings alone. A great way to cushion the impact of medical emergencies is to get your family members health insured.

They don’t have to be sickly to need a medical insurance. Accidents happen all the time, and as negative as this may sound right now, you need to be prepared for the worst at all times.

Financial Planning with an Unstable Income

Budgeting can be difficult for a commission-based individual who lives on pay check per pay check. It’s not impossible though, because living on commission only makes it all the more necessary for any individual to prepare a budget plan.

Compute your monthly average income

Even if you’re not living on a fixed salary, you have to at least have a minimum income goal every month. This has to be checked against your more-or-less fixed total of expenses. The trick here is only to live well within your means.

Ditch the credit card and use cash whenever you’re spending for food or rent. If you must send for any sort of luxuries, make sure that you’re not touching your emergency or bill funds. Keep a close eye on your financial accounting every time you earn and spend money.

Prepare lists

It’s always good to prioritize. Make two kinds of lists: a priority list and a “time-to-pay-up” list. The first list ranks your financial obligations over your little luxuries. The second list is more of a calendar for you to keep track of all the bills and taxes you need to pay for.

If you find that you’re having a hard time fitting your average income to pay the bills, refer to your priority list. Look at the things you can do away with, like cigarettes or alcohol. Weigh your needs for cell phones and internet connections at home.