Smart Spending

By hella hella

October 14, 2008 12:00 PM | Link to this

Making a budget is critical to a money manager(MM). In order to be sucessful the MM must be accountable for the activities (ie making payments by the due date, and being mindful of interest rates, FICO scores and the like.

By keeps money

October 14, 2008 12:19 PM | Link to this

I agree with hella hella but in addition to that I have a question for the CCC What is the calculation used to pay down a mortgage in half the time? For example, a 20 yr mortgage with a fixed rate of 5.5%, PITI is $1,100 per month?

By already down and out

October 14, 2008 12:32 PM | Link to this

I am a widow with 3 kids and I have passed down and out. The light at the end of the tunnel is out.

By Linda McMichael

October 14, 2008 7:39 PM | Link to this

Already down and out - am sending you love, good thoughts and prayers. Please hang on - there is always a glimmer of light that will get brighter, someway, somehow. Am a widow too, raising my grand-daughter. Far from financially comfortable, but hanging in there too.

By D

October 14, 2008 9:18 PM | Link to this

It’s not always just a matter of making a budget. There are people that are in situations that don’t even allow money to make a budget with. They may have had that chance and didn’t, so where does that leave them now? I can speak from experience.

My wages are currently being garnished by the IRS and while I work 40+ hours per week, my take home pay is only $225 bi-weekly. I sent documentation to prove that I don’t owe the amount the IRS claims (although I do owe a MUCH lower amount) and they say they never received it. I’ve re-sent and will just have to wait and see. Of course, they still want to take so much of my pay that I can’t possibly pay my monthly bills. I guess they’ll manage to take my 1993 car that isn’t even worth $500 next. Then how will I get to work?

I never made enough to do more than live paycheck to paycheck, so saving hasn’t ever been an option.

I realize that a lot have it worse than me, but it’s always hard to deal with things such as this.

By catlady

October 15, 2008 6:56 AM | Link to this

It is important to know WHERE your money goes, even if you do not think you have enough to “budget”. I hae a friend who makes a fair living wage but he is always worse than broke, borrowing more, etc. Yet his wife HAS to have cable tv, cell phone, etc. They eat out (not fancy) a lot. If he addedup the little things he might figure out that there is some “necessity” money they could use another way.

I can’t speak too much on this; I am sure I do the same. I have paid down at least half of my old debt over the last 6 months but it is a struggle to stay focused and not want to “treat” myself too much after years of spending all my money raising my 3 children alone. “Already down”, try to chip away at your old bills, even if it is $5 a week. And focus on housing, utilities, food, transportation. Period. Some things everyone expects to have are not really necessary.

By GaNative

October 15, 2008 7:56 AM | Link to this

D, I feel your pain. You are not alone in this situation. I know lots of people that have fallen prey to the IRS. It’s a no win situation, but hang in there. All governments screw their own people. Our Government claims Saddam Hussein was such a bad person in Iraq, yet they do to us basically the same thing by financially killing us with the IRS. They give us Stimulus Checks that we never see because they take that too. And you wonder why Rev. Right said God Dayum America.

By stefanie

October 16, 2008 10:04 AM | Link to this

would it be wise to move some monies from my retirement fund to a new offering from my credit union for a cd with a 7.6 rate?

By stefanie

October 16, 2008 10:06 AM | Link to this

would it be wise to move some monies from my retirement fund to a new offering from my credit union for a cd with a 7.6 rate?

By Running on a half tank

October 17, 2008 9:29 AM | Link to this

Here’s my question: I had saved up about 18 months of living expenses to cover my mortgage and bills in case of a lay-off. Well, I had a family emergency requiring me to spend that this past year to take care of it. I contribute the max to my 401(k) that my company allows — 25% — and also put in $100 a month in a Roth IRA. I want to build my savings back up back to that 18 month level. Should I suspend or lower my retirement contributions? Or should I claim more withholding or both?