‘Financial Help’ Archives
Are You Letting Expenses Rise to Meet Income?
By MARY ELLEN KALUZA I once heard the phrase: Expenses rise to meet income. Not me!, I thought. But, to be honest, even a pathologically frugal person like me lets expenses rise with income. Case in point: For most of my life (we”™re talking quite a few decades) I watched broadcast television and library videos on hand-me-down TVs. Cable was not in the budget as a single parent. After my nest emptied and I had only myself to support, I envied friends and the great stuff they were watching on internet streaming sites. So, I started to pay for streaming. But, because my TV was so old and dated, I had to move off the couch in the living room to a hard chair in front of the computer screen to watch streaming video. I was okay with that, but my cat was not. We had a lot of disagreements about what was comfortable and what wasn”™t. So I finally paid money for a new TV for the first time in my life. (Don”™t worry - I didn”™t completely [...]
YOUR FIRST APARTMENT!
By MARY ELLEN KALUZA It's that time of year ”“ moving vans are everywhere. Eighty percent of moves happen between April and September. A significant number of those moves are young people leaving the nest for the first time. Many life lessons await them! Some lessons will be painful. Avoid the pain with a little bit of knowledge. CHOOSE YOUR ROOMMATES WELL Everyone will be equally liable for the whole rent, not just their portion. Are the roommates dependable?Do you share a similar lifestyle?What about smoking or drinking? Frequent guests?How will you resolve conflicts? IS IT AFFORDABLE? The rule of thumb is to keep housing expenses at 30 percent of your income. But, this is just a guideline and not necessarily the best measure of affordability. If you have a decent income, the remaining 70 percent of your income can be substantial. If you are earning minimum wage, the remaining 70 percent isn”™t much. Spend some [...]
But I Don’t Wanna Budget!
By MARY ELLEN KALUZA I understand. Having a “budget” sounds restrictive, like a punishment. What if we call it something else, like a “spending plan”? Does that seem more palatable? Planning the money you have coming in and going out is really all about being in control. YOU are choosing where your hard-earned dollars are going, not the estimated 6000 to 10,000 advertisements we see each day! (That's double what it was in 2007, by the way.) With that much pressure on us, it takes some effort to keep that control. Where to start? Know how much money is coming in. This is the net income ”“ after taxes and other deductions. You'd be surprised how many people don't know that number. (Frequently, they also carry expensive credit card debt.) Subtract your Must Pay expenses ”“ housing, utilities, loan payments, insurance ”“ think of those things that will result in something bad happening if you didn't pay [...]
