2. This is the money you have after all the
mandatory deductions happen:
--Such as withheld income tax, Social Security
and Medicare taxes, and disability taxes.
3. "Must-haves" include all the basic expenditures you really need to make
each month: housing, utilities, transportation, food, insurance, child care,
tuition and minimum loan payments. If you can delay a purchase for a
few months with no serious consequences -- for example, clothing or
dining out -- it's not a must-have. If you're contractually obligated to pay
something (a credit card minimum, child support or a cell phone bill), it's
a must-have, at least for now.
4. If you can delay a purchase for a few months with no serious
consequences -- for example, clothing or dining out -- it's not
a must-have.
If you're contractually obligated to pay something (a credit
card minimum, child support or a cell phone bill), it's a must-
have, at least for now.
5. Vacations, gifts, entertainment, clothes, eating out and
other expenses are all "wants."
Some bills you pay might overlap the two categories. For
example, basic phone service is a must-have.
But features such as call waiting, texting, data, or unlimited
long distance are wants. Internet access and pay television
are two other expenditures that can feel like must-haves but
usually are wants, unless you're on some kind of long-term
contract.
6. To achieve financial independence and
minimize the chances of disaster, you need
to get rid of consumer debt (such as credit
cards), save for retirement and build your
emergency fund.
Any loan payments you make above the
minimum requirement belong in this
category, as do contributions to your
retirement and emergency funds.
7. Getting your “Must-Haves” down to 50% can be tough. So
really think about choices.
You must have a place to live – but it doesn’t have to be a
place with a pool!
You must eat- but you don’t have to eat out all the time.
What are other ways you can get your “must-have” amounts
lower?
8. Controlling the “wants” is a little easier.
Before you make a purchase wait a day.Try to
avoid impulse purchases.
9. Try to avoid racking up a lot of debt and when
you do have debt DO NOT avoid getting it
paid.
Once you have your debt paid continue to
“save” that money.
You never know when you may need an
emergency fund.
