Budget Update

Since this is Monday, it is time for a budget update as a part of my new leaf on life.

As I stated in my previous post, i got an overdue check for a freelance gig and have have earmarked it for my car fund. Only $5895 to go.

I also started my budget planning in earnest as I had said I would. I use propane to heat my house and right now propane is at a cheap cheap price. I have asked my supplier to fill the tank and sort of get a jump on the winter.

I also got a bread machine on freecycle and made my first two loaves of bread. One a french bread and one an herb bread. The herb bread was pretty good, the french bread a bit damp (too much liquid?) but so easy to make. I'm hoping to use the bread maker at least once a week to make a fresh loaf. I figure it cost me about 60 cents to make the bread (including the electricity for the bread maker). It costs me about $3.29 for a loaf of any bread at the grocery store.

My list of needs and wants is actually very small, I don't have much to ad to the previous post at this point. I need slippers, I want a new TV. I don't think I"ll need too much in the way of winter clothes at this point, (socks, a new pair of gloves).

Now you may say, What has budgeting got to do with Bankruptcy and bouncing back from it? It's all about planning and being fiscally responsible. I need to start now making those changes that will help my credit score and allow me to be the responsible person I was. Planning a budget and sticking to it is the first step.

I reccommend you use some sort of software. Quicken, Microsoft Money all have budget worksheets. Do some research and check out the various budget sites. Below is the snowball method of paying down your debt (taken from the web site, http://www.personalfinancebudgeting.com/). If I remember correctly, Suze Orman uses this method as well. According to my cousin, this is how her son was able to pay off all his debts in less than two years and buy an amazing home as well.

Use the snowball technique.
Identify your smallest debt (debt one).
Pour every available cent each payday into paying down that debt. Pay the minimum payment on the other debts.
Once you have paid off that first debt, identify the next smallest one (debt two).
Add the amount you had been paying on debt one to the minimum of debt two, and pay that amount.
Let the snowball grow with each debt you eliminate.
As you continue, your snowball will get huge, and your progress will seem to multiply.
Keep a chart of your progress.
Plan ahead how you will celebrate the successful elimination of each debt along the way. But don't celebrate in ways that would slow your progress. Be tenacious. Don't let anything get in your way.