I am proud to say that I FINALLY have my budget set to zero. I set up my Google documents budget to take account of all my expenses and then subtracted that from my salary.
At first I put in the minimum on every account to see what the difference would be. I ended up having some money left over if I put down the minimum on each account so I put in some estimated figures for things like:
based on the amounts I have spent over the last few months.
I then tweaked the expenses to put more than the minimum on each bill and increased the allowed amounts for irregular expenses. I also treated my savings like an expense because it is set up to be automatically transferred to a separate savings account in ING.
I did not include the income from the blog in my calculations because it is too irregular to predict. If I do get any income from the blog then it will be included at the end and will be a snowflake payment to be divided between credit cards and savings.
I am very pleased with the way the budget looks right now and realize that it will only take a few more minor tweaks in the future to keep it going.
I have payments set up in ING to go out automatically every month according to each bill. As my savings account grows larger it will be easier for me to make bigger snowflake payments as time goes by. I might even be able to do a large snowball payment and knock out a large amount of a debt at once.
This is the typical scenario we are facing:
Cost of living going up.
Income stays the same, or is going down.
Credit card debt increasing.
House payment getting harder and harder (as well as other monthly outgoes)
The obvios solution is to cut down on expenses.
There is only so much you can cut down.
Therefore, you must target credit card debt (reduce it) and reduce your house payment.
You can do it on your own, through negotiation.
You can seek professional service.
I tried http://WWW.BORROWERDEFENSE.COM and it worked pretty good.
The more you delay doing it, the harder to fix. Better start sooner than latter.
Thak God there is still a solution.
I love the Zero Balance Budget concept so much I have created a FREE Web application that permits users to create monthly Zero Balance Budget, called BudgetSketch. We’re currently in a closed beta test but the public beta will launch later this month. Nonetheless, feel free to visit http://budgetsketch.com/signup to create a free account and poke around a bit. Also, send us your feedback via the embedded forms if you so desire.
Hmm. Zero Balance Budget is a new concept for me. I didn’t understand it fully
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