Re: Help getting back on track

From: AINITGR8@aol.com
Subject: Re: Help getting back on track
Date: Wed, 6 Jan 1999 20:55:04 EST

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First and foremost, you need to sit down and write EVERYTHING out.
Creditor, full balance due, minimum monthly payment, how much you are behind,
etc.  Secondly, NO MATTER WHAT YOU THINK, you need to put 10% of EVERY SINGLE
paycheck away into an emergency savings to help you when the unusuals pop up.
You may insist that you can't afford to do that but I'll bet my salary you
can.  #1.  Keep track of everything you spend, every single penny for 30 days.
Do you eat out at lunch?  Do you eat dinners out?  What do you do for
entertainment?  How much are you spending each month on groceries? Etc.  You
can cut huge amounts out of your spending by simply cutting back or even
cutting out meals out.  Set yourself on a grocery budget.  Spend a few extra
minutes each week looking at the newspaper ads for sales at grocery stores.
Make yourself live by this budget by putting cash in an envelope each month.
You'll find that if its the 20th and you only have $40 left in the envelope,
you begin to immediately assess what is necessary and what is not.  Your
spending can be curtailed in that area.  If you are seriously in trouble, do
you really need cable tv?  Do you really need more the basic phone service?
Gym club memberships, auto club memberships, consider selling any automobiles
you are making payments on and purchasing something a little older without
payments.  It all depends on how seriously YOU want to get ahead.  It's a long
hard process but you can do it.  Both my husband and I work full-time jobs and
make considerably less than the national average.  BUT, we have managed to cut
our spending and live very comfortably.  We have no credit card payments, no
car payments, contribute over $7K/yr to our retirement and contribute 10% of
each paycheck to emergency savings.  We own 2 homes, with mortgages of course
(we are currently working on fast paying these) and own 2 cars.  We live in an
area that is an average cost of living and make average pay.  We are
considerably farther along than others we know our age because we hunkered
down early and decided what was important. (we are in our late 20's).  We go
on vacations once every 2 years, but get away for weekends by going camping or
visiting friends in other areas.  We have decided that finances will NOT
dictate our lives.  Besides, most people with "fancy" cars and homes have
"fancy" debt along with it.  We have the freedom to change jobs, move across
the country, etc. And we have acted on that freedom.  Anyway, you can do it!
We did it!  Yes it's hard and it sometimes still is.  Just remember where you
want to be and realize that it is VERY MUCH worth the "pain" now.  NO PAIN, NO
GAIN as they say!
Christina

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