Overspending while in debt is a recipe for financial disaster

AS a bankruptcy attorney and financial recovery counselor, I see a lot of people who are spending way beyond their means. They are always struggling to make ends meet and yet they do not have a clear plan on how to spend their money. In other words, they do not budget.
I know most people hate the word “budget” because it sounds like being on a diet. Some people also equate a budget to failure or lack. Some see it as a sign that they’ve failed in managing their finances and now must be “punished” by a restrictive spending allowance.
But let me ask you this question: Would you rather have a plan in advance on how to spend your money or be simply left wondering as to where it all went after your money is gone?  You see, a budget is nothing more than a written record of your financial reality. People who don’t want to look at the numbers are in denial about their situation so they would rather bury their head in the sand and pretend that the problems don’t exist.
Having a budget is the first step in gaining clarity about your financial situation and will help you prioritize your spending.
To create a budget, first you’ll have to write down everything that you think you spend every month. Include the rent, groceries, gas, eating out, clothes, etc.  If you are not sure, give it your best estimate.
Next, you need to track your expenses for at least one whole month. Write down all your expenses every single day, no matter how small. Once you have an entire month’s record of your actual living expenses, compare these with your estimates. When you do this for the first time, you may be shocked to see how much you are really spending on certain things. As you compare actual expenses to your estimates, now you can start setting goals for yourself. Should you trim down expenses so you can have a surplus that you can start saving every month? What expenses can you cut back on?  Maybe you are spending money on things you don’t even need.
Having a monthly budget can be a good first step in regaining control of your finances if they are out of order. Without a budget, you are likely to borrow money just so you can meet your monthly living expenses. And of course, if you are already overextended on debt as it is, you can see how this can easily escalate to a serious financial crisis.
If you are in debt and struggling financially every month, I would like to help you get your finances back in order. For a free consultation, call Toll-Free 1-866-477-7772. Let us evaluate your situation and recommend possible options. We have offices in Glendale, Cerritos, West Covina and Valencia.
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None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray Bulaon has successfully helped over 4,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call  Ray Bulaon Law Offices at  TOLL FREE 1-866-477-7772.