Chapter 1 What Is Budgeting
And Why Do I Need to Do It?
Realizing What a Budget Is 2 --
Recognizing What a Budget Isn't 2 --
Understanding the Financial Goals 3 --
Determining Whether You Need a Budget 4 --
Looking at a Sample Budget 4 --
Thinking About Your Long-Term Goals 9 --
Chapter 2 Prioritizing Your Spending 15 --
Understanding Why Not Spending Is the Key to Budgeting 16 --
Totaling Your Daily Expenses 16 --
Categorizing and Prioritizing Your Daily Expenses 20 --
Assessing Your Monthly Expenses 21 --
Categorizing and Prioritizing Your Monthly Expenses 34 --
Prioritizing Which Items You Want to Spend Money On 34 --
Chapter 3 Assessing Your Current Financial Situation 35 --
Understanding Why Your Financial Situation Is Important 36 --
Determining Your Income and Other Assets 36 --
Calculating Your Financial Obligations: Debts and Living Expenses 39 --
Putting Income and Financial Obligations Together 44 --
Identifying Potential Cash Flow Problems 46 --
Taking a Break if You Need It 47 --
Chapter 4 Creating a Livable Budget 49 --
Making Your Financial Goals a Reality 50 --
Spending Less than You Make 51 --
Spending Money Only on Budgeted Items 52 --
Saving for Unexpected Expenses 53 --
Revisiting Your Goals and Priorities 55 --
Generating a Budget You Can Stick To 57 --
Chapter 5 Freezing Your Spending for the Short Term 65 --
What Freezing Really Means 66 --
Reducing Temptation During a Freeze 66 --
Establishing What's Really a Need 67 --
Putting Away Your Credit Cards 70 --
Tucking Away Your Debit Card 70 --
Creating a Wish List 70 --
Chapter 6 Saving Money on Groceries and Incidentals 75 --
Preparing Your Own Food 76 --
Not Letting Perishables Go Bad 78 --
Getting the Lowest Food Prices 81 --
Avoiding Extended Warranties 82 --
Buying Reliable, High-Quality Products 84 --
Not Buying Trendy Items 85 --
Shopping Tag Sales and Resale Shops 85 --
Chapter 7 Cutting Your Expenses at Home 87 --
Turning the Thermostat Down (or Up) 88 --
Reducing Your Long-Distance Phone Bill 88 --
Getting Rid of Cable, Phone Extras, and Cellular 91 --
Shopping Around for Car Insurance and Reducing Your Deductibles 94 --
Growing a Garden, Even a Small One 97 --
Reducing Gift Expenditures 98 --
Avoiding Dry Cleaning 98 --
Getting Your Books and Videos from the Library 99 --
Chapter 8 Cutting Your Biggest Expenses 101 --
Moving to a Smaller House 102 --
Buying a House Instead of Renting 104 --
Renting Instead of Buying 106 --
Taking Cheaper Vacations 112 --
Chapter 9 Restructuring a Heavy Debt Burden 115 --
Understanding How Debt Is Restructured 116 --
Getting Credit Counseling 116 --
Consolidating Your Debt 118 --
Selling Some Assets 120 --
Using Your House to Pay Off Your Debts 124 --
Declaring Bankruptcy 124 --
Chapter 10 Refinancing Your Home and Tapping Your Equity 125 --
Finding Money in Your Home 126 --
Refinancing Your House 126 --
Understanding Equity 127 --
Refinancing Your Home and Taking Out Equity 128 --
Qualifying for Refinancing 130 --
Understanding Home Equity Lines of Credit 133 --
Chapter 11 Adding Income 137 --
Recognizing What Additional Work Can Mean for You 138 --
Getting a Second Job 143 --
Freelancing for Your Own Company 145 --
Starting a Small Business 145 --
Chapter 12 Surviving Unemployment 151 --
Sorting Out Severance Packages and Unemployment Insurance 152 --
Locking in Your COBRA-Defined Coverage 153 --
Seeing to Your Other Insurance Needs 154 --
Paring Your Expenses Down to the Bone 156 --
Looking for a Job As Soon As Possible 157 --
Starting a Consulting Firm or Small Business 160 --
Holding Down a Couple of Part-Time Jobs 161 --
Considering Another Geographic Location 162 --
Chapter 13 Sticking to Your Budget in an Emergency 165 --
If Your Car Breaks Down 166 --
If You Incur Extensive Household Expenses 168 --
If Family Medical Bills Overwhelm You 171 --
If You Become Sick or Disabled
If You Lose Your Job 173 --
If a Friend or Family Member Has a Special Need 174 --
Chapter 14 Getting Government Help
There Actually Is a Free Lunch!
Using Government Food Programs 176 --
Locating Housing Opportunities 178 --
Applying for Insurance 179 --
Getting on Welfare 181 --
Applying for Government Loans and Grants 182 --
Requesting Bankruptcy Protection 182 --
Chapter 15 Changing Your Budget for a New Baby 187 --
Making Time to Think About Your Future 188 --
Estimating Expenses for Your New Baby 188 --
Creating a Nine-Month Savings Budget 194 --
Choosing a Daytime Care Provider 194 --
Living on One Income 199 --
Creating a Budget for Your New Family 200 --
Chapter 16 Changing Your Budget to Include a New House 203 --
Figuring Out the Financing Details 204 --
Choosing Your Mortgage Length 204 --
Deciding on a Down Payment 207 --
Reviewing Your Interest Rate Options 208 --
Shopping for Your New Home 209 --
Selling Your Existing Home 211 --
Understanding Closing Expenses 213 --
Managing Unexpected Household Expenses 215 --
Creating a Budget That Includes Your New Home 216 --
Chapter 17 Saving Money for College 219 --
Understanding College Costs 220 --
Determining How Much You Can (or Want to) Help Out 221 --
Seeing How Much You Can Save 222 --
Taking Advantage of Government-Sponsored Savings Plans 223 --
Finding Other Ways to Pay for College 226 --
Creating a Budget That Includes College Expenses 229 --
Chapter 18 Changing Your Budget After Age Fifty 233 --
Determining How Much You Want to Assist Your Grown Children 234 --
Taking Care of Your Aging Parents 238 --
Helping Your Grandchildren Financially 240 --
Doing More for Yourself 241 --
Assessing Your Retirement Income and Expenses 243 --
Creating a Fifty-Plus Budget 245 --
Chapter 19 Saving for Retirement 249 --
Figuring Out How Much You'll Need 250 --
Finding Ways to Set Money Aside Now 251 --
Looking at Tax-Deferred Ways to Save 253 --
Letting Your Employer Help You 256 --
Investing on Your Own 258 --
Making Up for Lost Time 259 --
Chapter 20 Staying Motivated 261 --
Sticking with Your Budget Through Thick and Thin 262 --
Making Motivational Signs 262 --
Getting Back on Track When You Blow Your Budget 263 --
Finding Sneaky Ways to Spend Money 264 --
Building a Support Network 267 --
Reviewing Your Budget Periodically 268 --
Appendix 1 Debt-Restructuring Resources 271.