Budgeting Suggestions?

ninnymary said:

Many years ago, we had a small debt. According to Susie Orman, you are to pay the card with the lowest amount as soon as you can by making larger payments and smaller payments on cards/debt that have higher balances. Once you pay that card off go on to the next lowest ones and so forth. That is what we did and it worked for us. Now the only debt we have is our home which we should pay off in 5 more years.

Mary

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The idea behind Mary's post is that you pay all minimum charges and put as much extra as you can on the smallest bill. When that is paid off, continue to pay all minimum charges, but put the amount that went on that smallest bill and anything extra to pay off the next smallest bill. Keep using the money "saved" by not having those smaller minimum payments to make bigger pay down the next bill until they are all paid off.

In the mean time, put the credit cards in the freezer or cut a few up so they are not used. New debt is not what you want or need.

The flaw here is needing a regular income for planning. Dave Ramsey has a lot of great ideas for step by step freedom from debt, but self control is a vital part of his program.

There may be community assistance for getting bills under control -- do not go to a 'for a fee' credit consolidator -- that are free. This may be a good resource for your son.

Does he have a family -- wife, girlfriend, children? Enlisting a S.O. to get on board any debt elimination plans is easier than going it alone.

A lot of questions. You did give a lot of good advice.

Nyboy said:

Seed can you take the wasted food home for your chickens?

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No. Illegal. Goes to land fill to feed rats

seedcorn said:

Just because they get food at school doesn't mean they eat it. I'm amazed how picky people are.

I'm lunch buddy at school (BB/BS program) and I see all the wasted food.

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Around here the law prevents us from taking wasted food home. We once had a janitor who did, but when the District found out he was stopped. Something about losing funding?

Red, this is the son who, with his girlfriend, is expecting next month. He has two other children in the home. She is on board with trying to get solvent, but is not a good money manager, either, apparently.

It might be helpful if they had someone to be accountable to. Somebody they could give their payment schedule to and then call when the payment has been made.

So Lucky, I thought about this thread a couple of times today. The first, of course, was when I read your list of well thought out recommendations in the first post.

Next time was when I parked between what was probably 2 very different young ladies at the supermarket. Before I got out to go in, a very neatly dressed (denim and sweater) young woman drove up in a modest, newer car. A cheap model but brightly clean - unusual around here at this time of the year. She looked carefully at the fender of that little car before going in the store. I looked both on my way in and out couldn't see any problem with that fender.

However, returning to the pickup, I was joined by the young lady who parked on the other side. She was wearing a hoody and what was likely pajama bottoms. She was talking non-stop on her cellphone.

I sat there in the pickup for a few minutes - wrote a post to a garden forum there in the parking lot . She was there all that time, having quite a good time by the laughter, and all.

The other time I thought of this thread was when I passed a young guy coming out of a place of business. I guess he was coming out - he looked almost homeless and may have been. Immediately inside the door was another young guy, exiting. He was dressed in a suit, no tie but carefully groomed. As he passed, I noticed the very pronounced odor of alcohol ... well, it was 1pm. He must be on his martini lunch ... I guess.

I wonder how much we lose by confusing instant gratification with happiness in this country. And, if happiness is just gratification, is that a meaningful life? After awhile, do those burned packs of cigarettes really indicate fun? Do the games and casual friends indicate that these young people have "a life?"

On your list, you have saving as #2. I think it is good to have it ranked so high. Help both of them understand that the opposite of savings is debt.

Self-employment? We hear that offered as an alternative often but how many people are independently successful, how many fail? Nearly every successful business person is not in it alone. He or she has employees. They are in business together in mutual dependence, a team. "Independent sub-contractors" are so often living from one unemployment period to the next. I don't know what your son does but my advice is that he should find a team as soon as possible. Either hire one or hire onto one.

Steve

I like this guy. I've only skimmed his blog, but he is all about finding happiness in the little (free) things and saving.
http://www.mrmoneymustache.com

I like listening to Dave Ramsey on the radio and on pod cast. He's a bit of a all or nothing kind of adviser, but much of what he suggests in his show is spot on. And would be helpful to your son.