Coming to terms with a pay cut

We were struggling with the bills but still making progress when the bad news hit. Pay from my day job is dropping by more than one-third after the first of the year. This would be devastation if it were not for the changes that my family has made. Two changes have had the biggest impact. They are

Dependence

I began the new job last June. Avoiding dependence on the income is one of our wiser financial choices. Losing the income is going to hurt but it's mostly gone on the bills. I would be seriously freaking out if we had grown dependent on the extra income.

Creating space in the budget.

Paying off the bills has been a relief in more ways than one. Once again, I'm giving thanks for having created space in our monthly spending plan by paying off some of the bills. 

Taking the cut is a double edged sword. Although our income is going to be reduced, I still have a day job. This puts me in a better financial position than many Americans. I know that this is a gift and am grateful.

We fell back into the habit of credit cards for a little while but have pretty much climbed out. If those bills hadn't been eliminated, then I would seriously be freaking out about the pay cut. Instead, I'm simply concerned.

Surviving will take some creativity and willpower. I'm not sure how we'll eliminate many more bills. That won't stop me from trying. My family will take it one day at a time and do our best. What other choice is there?

Getting help with bills

People who are drowning in debt sometimes need help with bill. Utilities, rent and other major expenses come due whether you have a job or not. Being in a bad financial position can happen for lots of reasons. Every email I get confirms that bad debts can happen to good people. Illness, the economy, fire, natural disaster or an accident can each put a family in jeopardy.

When you are in a crisis, it can be tough to find help. Almost every community has places that can help with some bills. The key to getting the help is to know where to start looking.

I am writing this article from the perspective of a nonprofit director who has helped people who were in crisis. Every community has a slightly different system and every agency requires different qualifications. This article is a general starting point for people who need help with bills.

If you are looking for help with bills, there are a couple of things to know.

Forget about asking for help with credit card payments or other types of revolving credit. Organizations that offer bill assistance will only help with emergency funding for necessities as funds are available. That credit card bill may be high on your list but it won't make the cut for their list.

Workers usually want to help but funds may not be available.

You may need to have proof of income, rent receipts and identification for every person living in the household and identification for yourself. The paperwork varies so calling an agency ahead of time can save you time and frustration. 

Utility assistance
Call your utility company to see what they will do. They may have programs that can help with bills. If not, the workers can usually suggest places that are in your community where you can look.

United Way
This organization does not typically provide assistance. However; they can be a good referral source and can often direct you to the right agency.

Help agencies
General help agencies in your community may be able to help with bills. A pantry may be able to provide you with a box of food. Obviously, this won't directly help with rent or utilities. What a food box can do is free up funds that can be used in other areas.

Churches
If you go to church, then start there. Talk with your pastor about your situation and see if your church can help. At the very least, your pastor can support you through the process and may be able to make referrals or fax agencies that can help.

Toys
Getting help with the bills at Christmas can mean that you need toys. There are people who can help. Your child's guidance counselor, pastor, day care or agency may be able to get you on an Angel Tree list. Be reasonable with your expectations. Families who are adopted from these trees are typically adopted by a small group of people like you and me. Leave the iPads, iPods and Xbox off of your child's Christmas list.

Think outside the box
Agencies run out of money too. Don't wait until you are in crisis to start getting help with bills. Being proactive can help you make a few dollars here and there. Taking cookies to work and asking for donations, eBay, holding a yard sale, collecting aluminum cans, raking leaves or shoveling snow off of driveways can help. It may not solve all of your problems but it may help buy some time.

Modest Needs
This organization may be able to help with small grants. They are not an emergency funding source and they do ask for documentation. If you are getting help with bills from any source, you almost always have to provide information.

Reducing my Black Friday spending

This year, I am limiting my Black Friday shopping to the bare bones experience. Black Friday is one of my favorite times of year. I have fond memories of going shopping with my daughters and having a breakfast snack of Cracker Jacks. A store named Proffit's gave tons of the stuff away on Black Friday. The prize in each box ranged from some really cool items to deep coupons.

It was also a day for spending money. Granted, everything we purchased was either on sale, bought with a coupon or I used a combination of coupon and sales when possible (sound familiar). We were always sucked into the shopping frenzy and blew our budget.

Things are a little different this time around. Every time I think about overspending I take a minute and evaluate where we are financially (see blog post). It's giving me more confidence to leave the debit card behind. I'm still going to go out to enjoy the Black Friday crowds a little wiser than in previous years and it's giving me more confidence.

Wedding on adjusted track; another bill paid

Good news! I'm feeling better about things than I did two weeks ago. The wedding budget is remaining on the adjusted track. Plus, we paid off another medical bill this month. It feels like we are back to making progress and it is a relief!

We adjusted the wedding budget to reflect the adjusted tastes of the bride. And, I want to add that the increased budget is only possibly because we've been working hard to pay off the debt. This latest adjustment is about two weeks old and is pretty well cast in concrete. 

More good news is that another medical bill has been filed in the "paid" category this month. Unless something else happens, then we are down to three more to go. These are fairly large and will take more time to pay off than I would like. However; we are still making progress and that makes me very happy.

May will be the last monthly payday before the June wedding. Next month could be a little rocky. Fasten your seat belts ladies and gentlemen. There may be some turbulence up ahead. We'll see how it goes.

The wedding is killing our budget plans

The wedding budget killers are overwhelming. They said that the devil is in the details and I am finding that to be true. Some things are only a few dollars away from the budgeted goal. (For example, the invitations were only $25 over what we planned to give our daughter.) However; when the overruns appear on almost every line item it is time to cut back.

Hubby and I want to give our daughter the wedding that she wants but, we wanted to do it within reason. Our reasoning isn't matching up with the bride's reasoning but I'm hearing that our situation is often the case. This cheers me up.

We're going to continue to work to give our daughter a magnificent wedding and have set a new budget. It's expanded, but we hope that it will be a good compromise. Our goal is to get through this without taking out a loan. I've never understood that, still don't and won't do it.

So, we'll see how this goes. Have you experienced a wedding budget explosion? If so, how did you deal with it? Let us know in the comments section.

What would you spend on a wedding?

What would you spend on a wedding? This question is being bantered around my house right now. Our youngest daughter is scheduled to tie the knot sometime early this summer. The preparations are fun but the budget decisions are killing me. It's becoming easier to see why some people elope. (Note to daughter: Don't you dare.)

We are fortunate to have a nearly free venue. The gown and bridesmaids dresses are purchased. Now, it's time to decide how much to spend on decorations, food, the wedding service and the photographer.

Our efforts to get out of debt don't want to be drowned by the wedding costs. From reading articles it's pretty clear that people spend anywhere from the cost of a license up to many thousands of dollars for a wedding.
 I want to keep everything as reasonable as possible, make my daughter happy and still end up with a roof over our heads.

As I type, I'm simultaneously creating a spending plan that will keep us from incurring additional debt.  This is going to be more challenging that it sounds. I'm thinking that an additional $2,000 may be more than adequate to spend on the wedding. However, my daughter questions that decision.

Tell me, what would you spend on a wedding? How much do you think is too much? Leave a message in the comment section to tell me what you think about wedding costs and careful spending.

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After Christmas sales rack up bargains

After Christmas sales rack up the bargains. I hit Wal-mart and some other stores to sift through the clearance tables. This is my favorite time of year for bargain hunting. I can pick up items that help me save money all year round. With practice, it is not hard to spot items for weddings and birthdays.

Remember, spending money on something that isn't needed or won't be used doesn't save money. After Christmas sales hold a special temptation to splurge. All these tempting items are just begging to jump into my shopping card. Lists help keep me on budget and away from getting out of debt suicide.

Wedding gifts and birthday presents are two items that I like to grab on the after Christmas sales. The large bath baskets work for best friends and new brides. I also like buying fragrance kits and kitchen sets to use as gifts. There's nothing like buying them at half price or less during the after Christmas sales.

Holiday purchasing is great. I'm not just talking about Christmas here.  Red is great for Valentine's Day and the 4th of July. How about green for St. Patrick's or Earth Day. Silver and gold are perfect for anniversaries.

The list could go on forever but you get the idea. There is a lot that you can find on after Christmas sales to help save money the rest of the year. A little shopping now can save money that I can use to get out of debt. For me, that's probably the best reason to hit those bargain bins. Want to join me?

Duggar family loses child; has my sympathy

I just heard the news that the Duggar family has lost a child. My sympathy goes out to them. There are people who don't approve of the lifestyle that this family of 20 has. The Duggar family inspires me to push harder for my clan to become debt free. 

Jim Bob and Michelle Duggar share some of their secrets in this MSNBC interview. My family has a hard time saving money and there are just four of us. We're slowly learning how walk the path to become debt free. The road we are on is filled with land mines but one thing helps keep me on track. People like Jim Bob and Michelle who are already debt free have lots of tips for us to emulate. Here's why following the website and blog is helpful for me. 

How to help college students budget their money

Hubby and found out early that college students need to budget their money. It's back to school time and many students are moving away to college for their first semester. Soon, many of them will be phoning home to ask for money. Before you reach into your wallet ask yourself if you should.

We successfully put the information in the next two blog posts to work with our daughters. One is in college the other is in graduate school. Both manage their own expenses.

We love our kids and want to help them. One of the life lessons that has to be learned is how to manage spending. College students need to budget their money. Parents need to help them learn. It is that simple.

It's important to have a financial talk before your child heads off to the university. Prepare for by thinking of what you did or needed at college. Look at the information from the college of your student. Is the dining hall open every day of the week? How much money might your child need for the days it is closed or when the coffee runs out during a 3am study session?
 
Next it is time to talk with your college student about the budget. Determine how much monthly income your college student may earn. Factor in all income streams and any money you may give your student. Once you have worked together to come up with a monthly figure it's time to figure out how the rest of the budget. (more...)

Help your college student create a budget

In this post we talked about the need for college students to budget. Now it is time to draw up a spending plan. These are techniques that helped our daughters live within their means. Both are in school and managing their own finances. This article talks about how we helped them create a budget they could live with.

Help your college student create a budget by asking about his or her weekly life activities. Consider how he or she likes to relax during downtime to how many snacks are consumed in a week. Estimate how much gas may be needed and how many parking meters may need to be fed.

Write down everything that you and your college student can come up with. This budget sheet may help. Expect a few extra necessities during the beginning of the school year. Laundry detergent, dryer sheets and personal supplies have to be purchased. Planning for these expenses will help your college student create a budget but may carry your student through much of the semester.

Once your list is complete, compare it with the anticipated monthly income of your college student. Chance are high that the two of you will trim a few expenditures. This can be painful for both the parent and child. The two of you may need to sit down several times to work this out.

Budgeting may be a new experience. It is always hard to watch your child struggle but try to avoid going into recuse mode too often. When you help a college student create a budget you are teaching skills that will last beyond graduation.