When you spend more money than you make each month you are bound to have money problems very quickly. Sometimes we don’t realize till its too late!
How many times have you used the credit cards to buy a TV, school clothes and supplies, fixed the car, or any number of things and not realized that you just exceeded your monthly income. You may have even realized it but thought there is always next month.
Credit cards are the biggest culprit but they aren’t the only way to spend more than you make. Ugg, and Payday loans, don’t get me started! Paying the “minimum” of $15 a month, at first, doesn’t seem too bad, but when you consider that you are paying 400% interest of a years time–well, you do the math!
When you want or need something, you must first ask yourself…CAN I AFFORD IT?
First, make a budget. Analyze the cost of your expenses vs. income. After you do the math, see what is left over. Do NOT forget to include an amount per month for MISCELLANEOUS items–which most people forget.
I have seen people with as little as $500 a month income manage their finances very well while someone else with $5000 income can’t make it last the entire month. It all boils down to planning. If you plan your bills and purchases each month with the goal of not exceeding your income, you can make it on almost any income. Sometimes, the more you make, the more you spend….PLANNING is KEY!