5 answers
Jose
Student
Saluda, South Carolina
1
Question
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How to manage money while paying other stuff off?
If i am trying to manage money and stuff how would i do it if i have to pay rent car insurance and stuff like that?
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5 answers
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6084
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hi Jose!
Balancing your finances while settling other bills can seem like a daunting task. However, with a well-thought-out plan and the right tactics, you can effectively handle your money and reach your financial objectives. Here's a guide to help you navigate your finances while settling other obligations:
1. Draft a Budget: Begin by drafting a budget that covers all your earnings and outgoings. This will help you spot areas where you can reduce unnecessary costs and allocate more resources to settling your debts.
2. Rank Your Debts: Compile a list of all your debts, including the outstanding amount, interest rate, and the due date for the minimum payment. Rank your debts based on the interest rate, with the debts bearing the highest interest rates at the top.
3. Pay More Than the Minimum: If you want to settle your debts quickly, aim to pay more than the minimum payment due each month. An additional $10 to $20 per month can have a significant impact over time.
4. Utilize the Snowball Method: This method involves settling smaller debts first while making minimum payments on larger debts. Once you've settled a smaller debt, use that money to settle the next smallest debt, and so on.
5. Consider Debt Consolidation: If you have several debts with high interest rates, you might be able to consolidate them into a single loan with a lower interest rate. This can streamline your payments and save you money in interest.
6. Reduce Expenses: Find ways to cut your costs, such as cooking at home instead of dining out, terminating subscription services you don't use, and seeking cheaper alternatives for necessities.
7. Establish an Emergency Fund: It's crucial to have some money saved for unexpected costs, like car repairs or medical bills. Aim to save 3-6 months' worth of living expenses in an easy-to-access savings account.
In summary, balancing your finances while settling other bills requires meticulous planning and discipline. By drafting a budget, ranking your debts, paying more than the minimum, and reducing costs, you can effectively handle your finances and reach your financial objectives.
Recommended Reading:
1. “The Total Money Makeover” by Dave Ramsey
2. “Debt-Free for Life” by David Bach
3. “Your Money or Your Life” by Vicki Robin and Joe Dominguez
These books offer comprehensive advice on handling money, settling debt, and attaining financial independence. They provide practical tips and tactics for managing your finances, as well as guidance on how to draft a budget, rank your debts, and establish an emergency fund.
May You Be Blessed Abundantly,
James.
Balancing your finances while settling other bills can seem like a daunting task. However, with a well-thought-out plan and the right tactics, you can effectively handle your money and reach your financial objectives. Here's a guide to help you navigate your finances while settling other obligations:
1. Draft a Budget: Begin by drafting a budget that covers all your earnings and outgoings. This will help you spot areas where you can reduce unnecessary costs and allocate more resources to settling your debts.
2. Rank Your Debts: Compile a list of all your debts, including the outstanding amount, interest rate, and the due date for the minimum payment. Rank your debts based on the interest rate, with the debts bearing the highest interest rates at the top.
3. Pay More Than the Minimum: If you want to settle your debts quickly, aim to pay more than the minimum payment due each month. An additional $10 to $20 per month can have a significant impact over time.
4. Utilize the Snowball Method: This method involves settling smaller debts first while making minimum payments on larger debts. Once you've settled a smaller debt, use that money to settle the next smallest debt, and so on.
5. Consider Debt Consolidation: If you have several debts with high interest rates, you might be able to consolidate them into a single loan with a lower interest rate. This can streamline your payments and save you money in interest.
6. Reduce Expenses: Find ways to cut your costs, such as cooking at home instead of dining out, terminating subscription services you don't use, and seeking cheaper alternatives for necessities.
7. Establish an Emergency Fund: It's crucial to have some money saved for unexpected costs, like car repairs or medical bills. Aim to save 3-6 months' worth of living expenses in an easy-to-access savings account.
In summary, balancing your finances while settling other bills requires meticulous planning and discipline. By drafting a budget, ranking your debts, paying more than the minimum, and reducing costs, you can effectively handle your finances and reach your financial objectives.
Recommended Reading:
1. “The Total Money Makeover” by Dave Ramsey
2. “Debt-Free for Life” by David Bach
3. “Your Money or Your Life” by Vicki Robin and Joe Dominguez
These books offer comprehensive advice on handling money, settling debt, and attaining financial independence. They provide practical tips and tactics for managing your finances, as well as guidance on how to draft a budget, rank your debts, and establish an emergency fund.
May You Be Blessed Abundantly,
James.
Jeff Creen
Customer Service
2
Answers
Ferndale, Washington
Updated
Jeff’s Answer
Hello Jose,
A personal budget is the solution to this problem. It's pretty easy to create a budget for yourself - you'll mostly be using skills you've learned in 8th grade or earlier.
In the broadest sense, your budget is going to be a comparison between two numbers: how much money you make in a given period (1 month for a personal budget is pretty standard) against how much money you spend in that same period. You need the first number to be higher than the second number.
But HOW do you do that? Well, the first step is to make sure you have the right information. For your income, go over your last few paychecks and figure out what your average pay is. You will set your income expectations for the future based on your existing income trends. Many people get paid bi-weekly (every two weeks) and most months have 4 weeks, so expect two paychecks per month. Thus, two average paychecks will add up to your monthly income. This is of course assuming you will only have one job or income stream; if you have more, add those sources of income to this figure.
For your expenses, get to know your bills and add up everything. Unlike your income which will be a few large numbers, your expenses will be a lot of smaller numbers. When you're living independently, monthly expenses you can expect will include:
- Rent or mortgage
- Utilities (water, electricity, garbage)
- Internet and Phone
- Car (actual car payments, car insurance, gas, maintenance, parking)
- Other insurances like renters', health, etc
- Student loan payments or credit card payments
- Food
- Fun (SUPER important that you properly budget yourself a bit of money you can just blow on whatever)
- Savings
You need your numbers to be accurate, so make sure you're counting everything! Sometimes these expenses will vary a bit from month to month (electricity, for example), but like your income, you can make reasonable predictions for the future based on averages from your past.
So: add it all up, your income vs your expenses. If your income is greater, then great! Stick to your budget and save whatever extra you get. If your expenses are greater, you have to start changing things in your life to change your numbers. You could get another job to increase your income, or you could look for expenses to cut to reduce your monthly spending. -- live with roommates to reduce your rent, cook more at home and go out less often to reduce your food and fun expenses, etc.
And that's the easy part. The hard part, which is a subject all its own, is STICKING TO YOUR BUDGET. Go ahead and make your plans, but none of it will mean anything if you don't stick to your budget and live within your means. The hard part is having a big wad of cash available to spend on whatever you please, in a world full of fun and excitement and shiny new everything, and purposely choosing to be responsible with it.
A personal budget is the solution to this problem. It's pretty easy to create a budget for yourself - you'll mostly be using skills you've learned in 8th grade or earlier.
In the broadest sense, your budget is going to be a comparison between two numbers: how much money you make in a given period (1 month for a personal budget is pretty standard) against how much money you spend in that same period. You need the first number to be higher than the second number.
But HOW do you do that? Well, the first step is to make sure you have the right information. For your income, go over your last few paychecks and figure out what your average pay is. You will set your income expectations for the future based on your existing income trends. Many people get paid bi-weekly (every two weeks) and most months have 4 weeks, so expect two paychecks per month. Thus, two average paychecks will add up to your monthly income. This is of course assuming you will only have one job or income stream; if you have more, add those sources of income to this figure.
For your expenses, get to know your bills and add up everything. Unlike your income which will be a few large numbers, your expenses will be a lot of smaller numbers. When you're living independently, monthly expenses you can expect will include:
- Rent or mortgage
- Utilities (water, electricity, garbage)
- Internet and Phone
- Car (actual car payments, car insurance, gas, maintenance, parking)
- Other insurances like renters', health, etc
- Student loan payments or credit card payments
- Food
- Fun (SUPER important that you properly budget yourself a bit of money you can just blow on whatever)
- Savings
You need your numbers to be accurate, so make sure you're counting everything! Sometimes these expenses will vary a bit from month to month (electricity, for example), but like your income, you can make reasonable predictions for the future based on averages from your past.
So: add it all up, your income vs your expenses. If your income is greater, then great! Stick to your budget and save whatever extra you get. If your expenses are greater, you have to start changing things in your life to change your numbers. You could get another job to increase your income, or you could look for expenses to cut to reduce your monthly spending. -- live with roommates to reduce your rent, cook more at home and go out less often to reduce your food and fun expenses, etc.
And that's the easy part. The hard part, which is a subject all its own, is STICKING TO YOUR BUDGET. Go ahead and make your plans, but none of it will mean anything if you don't stick to your budget and live within your means. The hard part is having a big wad of cash available to spend on whatever you please, in a world full of fun and excitement and shiny new everything, and purposely choosing to be responsible with it.
Paul Goetzinger MPA
Academic and Career Consultant and Freelance Writer
744
Answers
Seattle, Washington
Updated
Paul’s Answer
Try the 90/10 formula
Basically, any money you earn, save 10 percent (10 cents out of every dollar) of it and place it in a savings account or invest it.
The remaining 90 percent use to pay bills and other debt.
Basically, any money you earn, save 10 percent (10 cents out of every dollar) of it and place it in a savings account or invest it.
The remaining 90 percent use to pay bills and other debt.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6084
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello Jose,
Here's a practical guide to managing your finances while juggling rent, car insurance, and other expenses:
1. Build a Budget:
Jot down all your income streams and monthly outgoings.
Group your expenses into categories like housing, transportation, utilities, food, and personal care.
Assign a specific sum to each category, keeping your priorities and financial aspirations in mind.
2. Keep Tabs on Your Spending:
Use a budgeting tool, a spreadsheet, or even a simple notebook to monitor your expenditure.
Document every single transaction to gain a comprehensive understanding of your financial status.
3. Rank Your Expenses:
Cover essential costs first, like rent, utilities, and insurance.
Remember to stash away money for savings and emergency buffers.
Tweak your spending habits to align with your priorities and financial targets.
4. Trim Unneeded Expenditure:
Spot areas where you can reduce spending, like eating out, entertainment, or subscriptions.
Explore money-saving methods, such as using discount vouchers, hunting for bargains, or seeking less expensive alternatives.
5. Establish an Emergency Fund:
Aim to accumulate at least 3-6 months' worth of living costs in an account that's easy to access.
An emergency fund can prevent you from resorting to debt or high-interest loans during unforeseen expenses.
6. Strategically Clear Debts:
Focus on high-interest debts, like credit card balances, to minimize the total interest you pay.
Think about debt consolidation or balance transfer options to decrease your monthly repayments and interest rates.
7. Automate Your Savings and Bill Payments:
Arrange automatic transfers from your checking account to your savings and investment accounts.
Schedule your bill payments to ensure they're always paid punctually and sidestep late fees.
8. Keep an Eye on Your Credit Score:
Check your credit report regularly for inaccuracies and stay updated on your credit score.
A strong credit score can help you secure more favorable loan conditions and lower interest rates.
9. Get Expert Advice:
Seek guidance from a financial advisor or a certified financial planner to help craft a tailor-made financial strategy.
They can offer invaluable insights and advice on effective money management.
10. Regularly Review and Fine-tune Your Budget:
Reevaluate your financial standing periodically and make necessary tweaks to your budget.
Monitor your progress and celebrate minor wins to stay driven and dedicated to your financial objectives.
Stay blessed!
James Constantine.
Here's a practical guide to managing your finances while juggling rent, car insurance, and other expenses:
1. Build a Budget:
Jot down all your income streams and monthly outgoings.
Group your expenses into categories like housing, transportation, utilities, food, and personal care.
Assign a specific sum to each category, keeping your priorities and financial aspirations in mind.
2. Keep Tabs on Your Spending:
Use a budgeting tool, a spreadsheet, or even a simple notebook to monitor your expenditure.
Document every single transaction to gain a comprehensive understanding of your financial status.
3. Rank Your Expenses:
Cover essential costs first, like rent, utilities, and insurance.
Remember to stash away money for savings and emergency buffers.
Tweak your spending habits to align with your priorities and financial targets.
4. Trim Unneeded Expenditure:
Spot areas where you can reduce spending, like eating out, entertainment, or subscriptions.
Explore money-saving methods, such as using discount vouchers, hunting for bargains, or seeking less expensive alternatives.
5. Establish an Emergency Fund:
Aim to accumulate at least 3-6 months' worth of living costs in an account that's easy to access.
An emergency fund can prevent you from resorting to debt or high-interest loans during unforeseen expenses.
6. Strategically Clear Debts:
Focus on high-interest debts, like credit card balances, to minimize the total interest you pay.
Think about debt consolidation or balance transfer options to decrease your monthly repayments and interest rates.
7. Automate Your Savings and Bill Payments:
Arrange automatic transfers from your checking account to your savings and investment accounts.
Schedule your bill payments to ensure they're always paid punctually and sidestep late fees.
8. Keep an Eye on Your Credit Score:
Check your credit report regularly for inaccuracies and stay updated on your credit score.
A strong credit score can help you secure more favorable loan conditions and lower interest rates.
9. Get Expert Advice:
Seek guidance from a financial advisor or a certified financial planner to help craft a tailor-made financial strategy.
They can offer invaluable insights and advice on effective money management.
10. Regularly Review and Fine-tune Your Budget:
Reevaluate your financial standing periodically and make necessary tweaks to your budget.
Monitor your progress and celebrate minor wins to stay driven and dedicated to your financial objectives.
Stay blessed!
James Constantine.
Jerome Dees Jr.
Sales Professional and Networking Expert
600
Answers
San Francisco, California
Updated
Jerome’s Answer
Find a simple budget sheet online (you can Google) and start by plunging in what you anticipate making each month. You can start subtracting out your consistent bills and you should end up with what’s left.
You certainly want to save some money in case of emergency, but you want to enjoy life too. Prioritize keeping credit cards paid off and if you have student loans, the more you can pay now, the more you get to keep in your pocket later.
You certainly want to save some money in case of emergency, but you want to enjoy life too. Prioritize keeping credit cards paid off and if you have student loans, the more you can pay now, the more you get to keep in your pocket later.