1) My advice is that you need to evaluate your budget? Do you even have one? I would start evaluating your feelings about money. Our feelings about money can determine how we treat money. If money is consisted dirty or unimportant, that we tend to have less of it. If money is very important, that we tend to have more of it one way or another.
<u>The average consumer's budget</U>:
Category-% of take-home pay
Housing: 30%
Utilities: 7-10%
Food: 15%
Essentials: 2-4%
Medical: 5%
Savings: 8%
Transportation: 15-20%
Clothing: 5%
Recreation: 3%
2)Then, start tracking where the money goes. I mean every penny! Both you and your husband carry a small notebook around and everytime you buy something write it down along with what it costs. This includes lunches at work, sodas from the gas station, gas from the gas station, get the point? Everything and how much is costs. Do this by the week over a period of time to determine where your money is going. People tend to spend money on impulusive shopping and this will help to acknowledge that type of spending. I would also consider writing down what you were feeling when you made your purchase. Were you tired, stressed, happy, hungry? This will help put an emotion on your spending habits when you evaluate them.
3) Decide what you can cut from your budget. Make a a family goal to cut so much of unnecessary purchases. It could be you cut back on having the top of the line Internet service, or cable package, or to cut down on getting sodas and cigarettes at the local gas station every time you fill up on gas to spending more time at home and less entertainment out. Check for free entertainment in your city vs. spending to go out. Example: check out the library vs. paying to rent a movie at the video store. Or wait for the new release to come out on DVD for rent instead of going to the movie theatre to see the new release ASAP!
Look at budget cut through another's eyes. What is important to you carries emotional ties that realistically MAY be able to be cut if the emotion wasn't there. I know I find it easier to cut money off of someone else's budget than my own cause I'm emotionally tied to whatever I have. If you would like more input, email me. I have taken a budget class recently and could probably give you some more ideas if we were to talk.
There is consumer credit counseling places out there that can help, but much of it you can do on your own.
Oh and check out some of Suze Orman's books from the public library for FREE. She has some to fit you.
"Young, Fabulous & Broke" by Suze Orman
"Women & Money" by Suze Orman (her new book)
"The Courage to be Rich" by Suze Orman
Website: suzeorman.com
She is on CNBC every Saturday night. Check your local listings for when it airs in your area.
Another financial book I recommend is:
"Mentored By a Millionaire" by Steven K. Scott.
Look forward to hearing from you if you need anymore feedback.