Be sure there is a line item in your budget for groceries, gas, healthcare and medications, childcare, savings and entertainment. If you haven’t been following a budget, take time to create one, no matter how simple, to track your expenses so that you can go back, review, and adjust as needed.
Take a Look at Debt
Many people find it hard to manage housing costs when struggling with high credit card balances or other debt. The longer you carry a high-interest credit card balance, the more it takes a bite out of your available monthly income. You will save the most money by starting to pay as much extra as you can on your highest-interest debt first, and then once that’s paid off, move on to your second-highest interest debt, and so on.
If you are feeling stressed by debt, exploring options such as a debt management plan or working with a trusted financial counselor could help you reduce monthly payments and reduce the overall cost of your debt.
Look for Ways to Reduce Expenses
To achieve a healthy housing budget, where might you be able to cut costs? You may be able to save money by doing things like planning your meals to reduce grocery bills, canceling streaming services you’re not using, or reducing your electric bill by cutting energy usage.
Are any major purchases on the horizon? Can you postpone major purchases like a new car or other large item? So often, when it is time to make a major purchase, it catches us off guard and we immediately turn to credit to pay for it. If your washing machine will need to be replaced in the coming months, try to set aside cash now. When the time comes to replace it, you may be able to minimize the use of credit.
Connect with a Housing Counselor
Whether you are experiencing budget challenges as prices continue to rise or longer-term financial challenges, a housing counselor can work with you to figure out your plan.
You don’t have to go through the process alone! MEMBERS1st has partnered with Greenpath Financial Wellness to equip you with the tools you need for financial success. It’s free, confidential, and no pressure.
