Always broke


		Always Broke
		Do we always have to be like this?	Back

You need 3 things: Plan Budget & Commitment to get through	Plan
	Have a list of goals: both short-term and long-term. Buy what you need only. Pay with cash, before using Credit Cards. (No huge interest) If you have to use the Credit Card, pay balance ASAP. Maintain good credit. (This can help if you need a loan) Write a list of Needs and Wants, eg "Do I need the latest magazine? I could save that $7.
	Budget
	It's difficult to make the money go round in life. so have a Budget for each week. Roof over your head ( rent, mortgage, rates, power, gas, phone) Insurance (household, life, car, health) Travel (car expenses, inc registration & petrol, commuter costs) Household (food, clothing, haircuts, credit cards, pocket money), Education (school fees, lunches, outings, commuter fees, uniforms) Pets (registration, vet fees, special food, toys). Entertainment (outings, DVD hire etc) Family celebrations (birthdays, special events, holidays) If possible try to have some surplus for Savings. Set aside funds to pay bills. (See the 'envelope strategy') Envelope Strategy: When you receive a bill, write the total and the due date on the outside of an envelope and put the bill inside. File the envelopes in something like a shoe box in the sequence that they need to be paid. Each week, review the envelopes and add some money to each envelope from your surplus savings. Deduct the amount you add to the envelope from the balance owing, written on the outside of the envelope so you can quickly look through the shoe box of envelopes and know where you stand and what is the most urgent. (Keep your shoe box in a secure place) Envelope Strategy - BPay alternative Clip the bills together & include a summary page with the due amounts & payment dates. Each week set aside extra funds plus what you have already included in your bank account to make payments when due. Try not to use these funds for other purposes, particularly things like going to the movies or the pub. If you cannot make a payment, phone the accounts department who wants money and negotiate a part payment and/or extra time.
	Commitment by all in the family
Simple ideas to help get through.....	Shop around, could you get it cheaper elsewhere? Do you really need something? Look at your expenses. What can you spend less on? Be realistic about what you can afford. Reduce luxuries (like wine, chocolate etc) for awhile. Maybe ask for increased hours at work. Take a packed lunch to work or school. Make burgers or pizzas at home, getting the family involved. Get a DVD and popcorn, more comfy at home than at the movies!
	Warning
Expensive money	Be wary of Payday Loans or Cash Advances. Their application process only takes a few minutes, and the money up to $1500 is usually available in 24 hours. Biggest disadvantage example: you have 2 weeks to pay back $115 for every $100 borrowed.
A better alternative	It maybe better to make a phone call to those you owe money, before the due date, and negotiate a mix of part payments & short delays, that you really CAN DO.


What is it .... and How to find it ...	Short summary ...	Scoreboard
Yes you can be debt free. (Phone 1300 658 662)	This is a commercial finance service but may have some ideas to work your way out of debt.	6/10
Wesley Financial counselling Services	Wesley financial counselling has skilled counsellors who can help through services like Creditline, Lifeline, Legal and Gambling services.	7/10

Other useful stuff ....

Consumer Credit Legal Service:
Do you need help with financial difficulties, ph 08 9221 7066.

Check with Centrelink for Government entitlements.
It takes some 4 weeks to receive benefits. (Phone 13 10 21)

If you have any money left over after paying bills etc,
you are definitely on the right track!
You could use the extra to pay off your debts faster,
or have a special treat.
Or you could split it 50-50 and compromise!

Having limited funds is difficult,
but if you plan your spending carefully,
you can get through the hard times, & get back on track.
Try not to let it get you down, it won't last forever!


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