The number one thing if you have an adjustable rate mortgage is to shop for a fixed rate. Refinance to lock in a 15 or 30 year fixed rate mortgage. You should be able to find one for close to 5%. Do your homework and get the lowest rate available. If you are paying over 5% rate on a fixed rate mortgage, also look for refinancing. Check in your area and see what is available.
The next thing to do is get money in the bank. If you have a job now and a pay check coming in, know that it might not always be so. People are losing their jobs every day who thought their jobs were secure. Almost everyone can save 10% of their income. Just imagine you don't have that 10% coming in. You couldn't spend it if you didn't have it so go on that premise. If you simply can't consider saving 10% then save 5%. But do get in the habit of saving.
Cut out all nonessentials such as eating out, cable TV, gym memberships, and entertainment. Nonessentials take up more of your income than you think. Take your lunch to work instead of eating out. Don't rent those videos. Take the kids for a walk instead. Go to the grocery store which sells the least expensive food. Don't buy children's toys. I'll bet your kids have more toys than they can play with. If you are like most people you can wear the clothes hanging your closet for years without buying anything new. Do that and put your money in the bank.
Little things like turning off the lights when you leave a room, only running your washer and dishwasher when they are full, and when baking fill your oven full. Bake potatoes, bread, pies at the same time from scratch. This will save on your grocery bill and your utility bill. You can take time out on the weekend to do this and save money. Most people can save money they spend on groceries and eat healthier. Buy fruits, meats, vegetables and prepare them yourself. Prepared foods are unhealthy and are much too expensive. You and your children will be healthier by preparing your own food. You say you don't have time! It doesn't take much time to make salmon patties, steam squash, and make a salad. Simple healthy meals can be easy to make. You don't need to go to extremes.
Use less amounts of shampoo, conditioner, A little is plenty. Don't waste anything. Use it up, wear it out.
If you are already in too deep, don't bury your head in the sand. Call your creditors and explain the situation and try to find a solution. Ask for help if need be, Call the National Foundation for Credit Counseling at 800-388-2227 or go to www.nfcc.org.This is a reputable non-profit organization that will connect you to a member agency to help you sort out your bills and get you into debt management.
If you owe for a house or a car you can't afford, Move into a smaller house and get rid of the vehicle.
Put away the credit cards. Living on credit is what got you in trouble to begin with. Don't use them anymore.
Almost everyone can live with much less and be the better for it. My hope is that we will all learn to do that and make our world a better place to live in. I see so much waste around me everyday and most people don't know any better. That's the sad truth of it. We take so much for granted until it's no longer there. I think we need a picture in front of us that we can't look away from of all the poor people of the world who work themselves to death trying to provide food for their hungry children, and still the children starve. My wish is that we all become more aware and not take for granted what we are lucky enough to have.
