Years ago I had a period of time where my income was cut in half, it was a crisis, my own type of government shutdown / budget crisis. I was spending everything I was making and had no savings to speak of. Those times were so bad that it caused me to do the unthinkable, live on a budget. They say only two types of people live on a budget, weird people and people that had a dramatic financial event in their life. Depending whom you talk to I may fall into both categories.
Over the years of being a volunteer budget coach I realized that most of the people coming in to see me were in crisis, there was not a great deal of time to get them on a full blown budget. They had to make some financial decisions to keep from going under and I had to develop a plan to help them survive.
When Mark Baird from Hire Patriots asked me to write a chapter on budgeting for his new book “An American Crisis – Veterans’ Unemployment”, which is on Amazons Top 100 in three categories, I decided to write about the crisis budget instead of the full planning budget. A full budget is important and I encourage everyone to do one but if you know someone that needs help now the crisis budget is for them. Here is the short version.
Your Triangle Needs – like a triangle you have 3 sides to protect. You need a place to live, food to eat and transportation. Those are the first items you need to protect with the income you have coming in. In the book there is a link to a free web where you can print out as many of these budget forms as you like and much more. Many people go under because they try to keep all their creditors happy and spread around partial payments which results in angry creditors, phone calls and prolonged decision making. Here are the basics of the crisis budget.
– Calculate every expense that is involved in your home such as insurance, taxes, payments and so on. Do the same for your modes of transportation and spending on food.
– Add up these three expenses and subtract them from your “take home” income and see what is left.
– Visit www.credability.com and view a video about DMP – “Debt Management Plan” to take care of the rest of your obligations with the money you have left over. Credability is a non-profit agency I have referred many people to for help. They charge $35.00 administration fee to set you up and that is it. They have connections with most every creditor and will work with them on your behalf to take the money you have left over and keep everyone happy. Usually a three year plan is put in place but it will keep a family afloat while they regroup.
For the sake of this blog this is the simple version. If you know a family in need tell them about the book it can be found on Amazon or http://amzn.to/Xgvwcp
Proceeds go the Patriotic Hearts non-profit.
For other resources including finding a job, a day job, home business opportunities and much more visit http://hirepatriots.com/heroes