Thousands of wage earners and single business owners live on borrowed money until a drastic change in earnings forces them into a downward spiral of mounting debts and missed payments that budgeting wisely could have prevented in the first place. Getting out of debt is not easy but it can be done by consolidating credit card payments into one payment and only using it for extreme emergencies freeing up some much needed cash.

Fixed Expenses

Fixed expenses are subtracted monthly from the net deposit such as: a mortgage payment or rent, auto insurance, cable or satellite dish network, a newspaper, a loan or one credit card payment, an automobile payment, internet services If at possible these payments can be set up automatically at the companies source or at the banks where they have automatic bill pay deducting them automatically from the net deposit. Using a checking account or debit cash card instead of a credit card.

Other Expenses

Utility payments fluctuate and it is better to pay them monthly online or automatically by telephone for timely payments Gasoline and groceries are budgeted weekly and hopefully using a debit cash card instead of a credit card or a gasoline card where a high interest rates adds to the purchase. These expenses can be curtailed by shopping wisely and maybe finding other sources of transportation. Tracking each expense is important and the budget will reflect how much cash is left after the fixed expenses and the other weekly or monthly expenses are subtracted.

Usually, two pay periods a month are where wage earners can budget their fixed expenses and other expenses by splitting them. For example: The mortgage payment, a fixed expense, a loan payment( from debt consolidation) or a rental payment is budgeted at the first of the month. The rest of the fixed expenses and the other expenses are budgeted at the middle of the month and there should be some extra cash left over. Opening another checking account and putting fifty dollars a month into it and by the end of the year it will add up to six hundred dollars. By the end of two years twelve hundred dollars. It will be enough for some major purchase with charging it or just some extra cash for emergencies.

A budget is a form of discipline that most everyone finds restricting. However,it does not take the brain of a financial wizard or an accounting expert to set up a simplified form for a budget sheet. It is just a matter of fixed expenses and other expenses minus a net deposit. If a wise man or a wise woman walks with a purpose then it is a wise budgeter who always has some extra cash.

The author has found that by consolidating credit cards and wise budgeting she has some extra cash left over during the month.