A lot of Americans are suffering the “effects of the economic crisis”, so I would like to share some “tips about how to solve those problems”:
- List all of your spending categories (meal, education, household, gasoline, medical, etc.)
- Think of what is the priority or unavoidable spending.
- Put the monthly amount for each spending.
- Count up the amount and compare with your income. If your spending is being in between 75% up to 85% of your income, you can feel free. If it not, through down the step below.
- Cut the totally amount. Count up only for unavoidable spending. If it be in 40%-60% of your income, it’s okay and you just have 15% up to 35% for other expenses. But if your unavoidable spending more than 50% of your income, feel free to evaluate the cost, maybe you can make any reduction. Beside that, feel free to reduce your avoidable spending. Try to get 85% maximum of your income for your cost living.
- What about the 15% or 25% of your income? I suggest you, don’t think about this, because it will cover your unestimated cost.
- How to save the 25% of your income? Open one more bank account, and deposit the amount as soon as you get your salary and forget that you have the bank account.
- If you have instalment, try to communicate to your creditor to rescheduling your instalment.
- Don’t forget to record all of your spending to compare with your budget.It’s difficult ways, I know! But, you must do this. If not, you can’t enjoy your income. Don’t be ashamed because you must reduce your comfort living.
And finally, think about the New Bankruptcy Laws: filing chapter 7 bankruptcy, could be the final answer to solve your problems.