Financial Responsibility and You

Tough times make thinking about being financially responsible a hard thing for many. It's a fact that people who aren't comfortable financially, are less responsible with their money, a lot of this has to do not with lack of knowledge, but with the frustration of trying the impossible. If this sounds like you, here are some tips to get you thinking about being responsible with your money. This won't happen overnight, but if you know what you need to do, it will help you work toward a financial goal, so it will be easier to be responsible with spending.

You or all of the working members of your home should make enough income, that you have 50% left after needs. Most people stop here and say that this is impossible. If you feel this way, your first step is to make more money, which is possible for everyone. If you already work too much and are looking for higher pay, try spending money paying off big purchases so you have more of an income later. If your housing costs too much, rent or purchase a smaller place. Most kids are willing to share bedrooms, when they realize that it will eliminate financial stress that is present in the home.

Spend 20% of your income on wants. This is actually a need, even though the money is spend on wants. If you don't have this money each month, every time you want to have fun you will bust your budget. This ends up making you feel guilty for having fun. Spend small amounts on a monthly pass to rent movies online or your kids foot ball games. Have coffee with your spouse on Saturday mornings and take your kids to lunch once a month. These things are necessary for a person to stay sane and responsible.

Save 20% of your income. Yes, 20% of every check needs to be forgotten, not touched at all. Learn to live without it, if you don't have it, then learn to be frugal and take it above anything else. Spend 10% on debt. I don't know anyone who doesn't have bad debt, so start spending money every week to get rid of it, above and beyond regular monthly payments. Once you are out of debt take the 10% you spent on debt and add it to your savings, now you are saving 30% of your income.

Even if it takes many years for you to follow these simple rules of being responsible, there is a pay off to succeeding at making these percentages top priority. If you loose your job, you will have enough savings after a year, to feel comfortable getting another job and taking a few weeks to a month of to find a better position. If you need time off, because a family member go hurt, it won't make you crazy, because you can't pay bills. Getting out of debt always makes a person smile and making enough money to do fun things with family is a great pay off. Work hard to obtain financial responsibility and you will thank yourself for it.