Ask:
Hello all!!!! I am really needing to sit down and work out my finances. I need to get my car paid off and I don't owe very much on it. I have not much racked up on my credit card (less than $500.00). My daughter has big medical bills that I am STILL paying on from when she was about a month old and now she is 2 1/2! I need to start some real savings. I am just so lost right now. Being a single mommy isn't easy, especially when her dad is so wishy washy. Advice? Help please.
Answer:
I am not great with $ but I would say the first thing that I have been doing to get on track is write down on paper all your bills and expenses and your monthly income. Write out the due dates and figure out how much you pay out of each paycheck toward each expense. For example, I pay $210 each paycheck (every other week) for childcare. After you do all that, see if you have money left over, if not, figure out where you can cut down expenses. Then decide how much if any you can allot to paying extra on your car, cc, and savings. Some people pay extra on the smallest balance, others on the highest interest, or maybe just divide your extra money by 3 and put 1/3 in savings, 1/3 to the card, and 1/3to the cc.
You will find a million and one good ideas to cut back on expenses just reading these boards.
As far as medical bills, are you paying to them now, or on a payment plan? If they ask too much, tell them you can pay X dollars a month and that's it. Usually as long as you are faithful in making even small payments, they won't hassle.
Good luck to you
Answer:
I watched an Oprah special one time about a Debt Diet. Maybe she has some advise on her website.
What they did was list all their debt, and pay the one that had the highest interest payment first. Of course you still needed to pay the minimum on the others. When the first debt was gone, add the extra money to the next largest etc. etc.
Maybe make yourself a chart and tick off each bill as you go. It's a great visual reminder.
Answer:
I am a big Dave Ramsey fan and I recommend reading his book Total Money Makeover.
Like a fellow post, I tracked every cent I spent then I outlined a budget, refined it, then refined it again. Quite shocking to find out where I spent my money, a real eye opener. Now I budget every cent of my money. I know where every cent is being spent and it has really freed me. I know longer wonder where all my money goes each payday and for the first time in my life I have control over my money instead of my money having control over me.