Debt
Management and Debt
Consolidation Part
4
by Clifton
Next
you may want to create a debt consolidation budget guideline,
for example the percentage of what your housing loan will
occupy your take home pay. You may set aside 30% on housing
that includes repairs, power, phone, water utilites etc.
may be 20%, food 20%, medical 10%, clothing 5%, entertainment
that may include smoking, dining with friends, magazines
15% (this is the section where you need to pay more attention
to) and lastly, savings and investments, the most important
part of your plan. I will be writing free book on Investments
soon, so stay tuned!
Now
you can start a New debt consolidation Budget,
this is where most people fail, they jump right into this
part without first tracking their expenses. They start
giving themselves impossible debt consolidation budgets
to stick to; in the end they failed and start complaining
that it don't work. Just imagine if you spend $200 on fuel
and now you decide to budget it to $100, that is almost
impossible and is not realistic. That is the reason why
all the articles that I have written don't have content
table explaining a summary of each chapter, it is just Debt
Management and Debt Consolidation part 1, 2, 3 and
so on. If I were to write Debt Consolidation and Debt Management
Chapter 1, tracking expenses, Chapter 4, new budget, guess
what, people will tend to go right into chapter 4 and skip
chapter 1, that is why they will "fail"!
Next
you have to balance your budget, you have to add up all
your expenses and subtract it with your take home pay after
deducting your emergency savings fund goal you have set.
If your balance is positive, that's good news, if not,
you may want to narrow down your saving funds goal to a
longer period, that may give you a better buffer to work
with. Try to work on the “wants” in your budget,
reduce the wants as much as possible, take it as a game,
you have to play to win right? If not, what's the point
of playing in the first place. <Previous
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