I've heard to use no more than 1/4 of your take-home salary for a house payment. Shelter is #1, quickly followed by basic foods, clothing, then transportation. Utilities come next (which I don't really understand, I'm just restating something I heard). I guess the point of it all is to have a budget and stick to it. It's hard to do, but necessary.
Christinaof IL7:50PM June 29, 2010
We learned the hard way about credit cards and years ago paid them off. Because of the need for a credit card for airline tickets, car rentals, etc. we took advantage of our banks debit card offer. Now if we don't have the money in our account we don't fly. We still have the "credit card" name but aren't spending non-existant money.
Jennifer Hardyof KS6:14PM June 29, 2010
You need a credit card for flying and renting a car, sometimes for unexpected expenses. Just be sure to pay it off each month, two at the most in emergencies. This keeps your credit open and your FICO score benefits.
b.g. Siegmanof CA2:52PM June 29, 2010
I have a family member who is swimming in debt and because of the interest rate, the level of debt increases daily...even if she buys nothing! The worst thing anyone can do is buy on credit which is just another word for high interest loan. There is nothing worth buying on credit except for a house...all the rest you can reasonably save up the money before you buy....being tied to credit is a form of enslavement....you have NO CHOICE but to work to make someone else wealthy (via the interest)...proverbs says, "Neither borrowers nor lenders be." The wisdom of that proverb comes from knowing the result of borrowing--a heavy burden that never seems to go away....
So, cut up your credit cards, except for one (to be used only in the most dire of emergencies. Otherwise you are a acting the fool, and you know the other proverb: A fool and his money are quickly separated. Smart people live beneath their means, whereas foolish people live above their means. (Hint spend only 3/4 of your income, the other 1/4 you can save or pay off your bills. Or better yet, live on 1/2 your income to pay off bills...if you owe anything at all, you should not be buying or spending anything beyond the very basics: Rent, utilities, food, and car expense...better: sell it and use the bus or walk. Simple...
Wendyof CA2:12PM June 29, 2010
You could not be more spot on than stating that over and over again(no pun intended). People accept edicts from companies, yes, most all are companies, even gov't. officials do business w/companies all the time. Most people won't pay more for quality food, nor change their food habits. Instead, they will watch those pounds roll/pack on and accept that "over" eating and eating the wrong foods will take their life. Those hard choices, being responsible for oneself, caring for ones own health rather than turning it over to another are symptomatic of "over" syndrome. Too bad. It can be fun to do this creatively.
The "easy" life is the hardest. Hard choices make life eventually, easier.
Reader Comments
Back to blog
Christina of IL 7:50PM June 29, 2010
Jennifer Hardy of KS 6:14PM June 29, 2010
b.g. Siegman of CA 2:52PM June 29, 2010
Wendy of CA 2:12PM June 29, 2010
Diana Brooks of CA 11:23AM June 29, 2010