Huh?
How much you make? $62K a year
Where is your money going? My house note.
How much is that? $1300
Utilities? $300
hmmmmm
I don't get it, that's only $1600 a month
Where is the rest going? car, clothes, credit cards payments
How much do you think you spend on that? about $2000
a month?
Yeah
LOL
Holy Smokes.
My friend is a tax agent for HR block, and she does counseling for an organization 2 days a week, She told me she does not have the patience for it anymore.
I asked why and she said.. because when you tell them to cut their lifestyle to have more money saved, they tend to give you a puzzled look!
My take---had she avoided her lifestyle for 5 short years and just save maybe 10% and invest some funds for retirement, she would have fat cash cushion instead of a fat debt load.
I doubt if I can counsel people because most people do not want to hear the word "NO" you can't have that.
You cannot make a person stop spending money. PERIOD.
Monday, April 7
There is no money left over for saving, vacation, or entertainment
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8 cool comments:
hmmm...well....i dunno....i volunteer as a financial counselor and most of the folks i meet with want to change, it's just encouraging them to do so.
But, yep, i have had some folks who just wanted me to pull a rabbit out of a hat.
$2000 for car, clothes and credit card payments... Does it mean for this person $2000 isn't enough to cover clothes and car that she/he needed to spend even more on CC? Is it a single mom with 5 kids? Does she/he buy clothes every month? Wear super-fancy suits for a Wall Street job or is it a singer/actress that needs clothes to perform?
How much can one earn counseling these people? Might be a good retirement job. High entertainment value too - your friend should probably pay them for the entertainment she gets.
Ouch, Money! You are hitting close to home. You speak the truth. I started blogging because I knew if I didn't, I'd be wondering what happened to my money. Restraint can be hard, but there's no other way.
kitty- I think it's High entertainment value !! LOL
She just gets frustrated when they do not oblige. They expect her to give them a pill so the debt can go away.
For as the $2,000 a month in payments, I'm sure she has a new car and a nice wardrobe. bottom line she has not heard the word NO in ages.
@frugal- We are all human, I have made mistakes and had my fun with money in the past. Most people have to get in a rough spot to stop the spending.
@ finance girl- I'm a cut and dry person when it comes to advice. I doubt if I have the patience to deal with a client like that.
You have more patience than me to be a counselor.
I feel that way and we make six figures. So I get what they are saying.
I'm baffled when people put clothing into a monthly budget. I mean unless you are growing or shrinking or constantly gaining or losing weight, your clothes should last. For me its about priorities. I'm in grad school and I'm fine with eating rice and beans if it means I can buy some shoes eat out at a nice restaurant. Who can really have it all and stay afloat?
yeah - i don't get having clothing in a monthly budget either unless you mean laundromat/dry cleaning.
but those monthly credit card payments can add up if you owe too much money - it makes it hard to save, and hard to pay more than the monthly minimums. when you get to that point, it's all damage control.
I think you can have it all and stay afloat. The key is, you can't have it all from the very beginning and the same time. Most people can't have it all fresh out of college but a few years later, they are probably able to.
I believe in having monthly budget categories for anything you spend money on. Surely, most people buy some clothes over the course of the year so why not budget for it?
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