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When Budgeting, Focus on Goals, Not on Deprivation


Being told that you need to make a budget and stick to it is as pleasant as being told that you need to go on a diet.  You are already spending your every free moment engaged in one or more income generating activities, and you spend as modestly as you can, but everything is so expensive.  The idea of allocating every penny before your paycheck even comes in sounds downright depressing.  You prefer to pay the bills that are due and then take your budget one day at a time.  Even though such a strategy would cause many a personal finance expert to suffer any a conniption fit, it can actually work if you make some minor adjustments.  If you are open minded enough, it is possible to budget and to fly by the seat of your pants at the same time.  For that matter, if you are open minded enough to do that, you might also be amenable to advice from a Plantation debt lawyer about long-term debt repayment strategy.

Think of It As Raising Funds for a Prize That Is Only Visible to You

Your current strategy is to pay the bills first and see how close the rest of your paycheck gets you to your next payday.  The category of “the bills” does not match up perfectly with the category of “necessities,” although they overlap somewhat.  The bills include your rent or mortgage and your utilities, but they don’t include groceries, which is your world are a fly by the seat of your pants expense.  Credit card payments are “the bills,” even though the impulse purchases you charged on your credit card over the preceding months and years were not, strictly speaking, necessities.  When you are trying to make what is left of your paycheck last until the end of the month, there is never a dull moment.  Most of the time, you are charging groceries on credit cards or BNPL by the end of the month, and taking home leftovers from a luncheon at work feels like winning the lottery.

How can a small change help you pay down your debts if your budget is already this tight?  All you have to do is increase the amount of debt repayment in the “bills” category at the beginning of the month.  Instead of paying the mortgage, utilities, and minimum payment on your credit card, pay the mortgage, utilities, and minimum payment plus fifty dollars on your credit card.  Then go back to flying by the seat of your pants like you have been doing.  It will make you more mindful of your spending, and even if you run out of money and start swiping the plastic before payday, you will start the month with a lower balance.

Work With a Debt Lawyer About Paying Down Debts

A South Florida debt lawyer can help you determine whether gradual debt repayment will work for you or if you need a bigger intervention.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.



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