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Yeah Tracy is on the line.
Hey Tracy welcome -- the Dave Ramsey show.
Thank Dave how are you act better than not deserve or -- good good.
Okay I'm you discuss the budget a lot of likely -- all the time and a great but it is in the corners and by the fact that.
Now beginning of the year I expect my real estate license battle maybe a little late for the bottom falling out but throughout the year -- -- -- jobs and my husband and -- carriers but the -- company he works full time.
I really bad budgeting was sitting down and making sure you didn't trail away all your money every night and -- -- What do you do when you get the -- where.
Didn't know my -- it basically after you've paid everything and even when -- -- a little short.
You sit down and basically -- -- confirmed what our email.
Well we usually do that a lot when we were going broke as an example.
And we often had you know.
70% of the budget -- -- -- line where the money ran out.
We were only able to address 30% of what was going on some pretty extreme situation where we ran out of money early.
But there's a couple things you do want is we -- and we don't -- -- a generic perfect month from heaven budget.
Where everything just averaged out ought to do this month's budget.
For instance -- in August and I'm in Tennessee.
Translation lots of air conditioning.
OK -- -- my electric bill is going to be higher than it will be this winter since I heat with a gas.
And so as I've budget for electricity I have to do that have heavier now so.
In the -- what is really going to happen this month now we're coming to the end of August so why don't we go -- and do.
All of September.
With the bills that are actually laying there and the things that we need to do or wanna do in September we're going to spend September's in com.
Own paper on purpose.
Now look at how many paychecks he's gonna get what -- you think you have coming in that's the income.
And then give every one of those dollars -- -- now we're going to prioritize as follows.
The first priority is necessities.
Car gasoline car payment if there's a car.
Food transportation utilities clothes that kind of stuff for -- And you got the money to take care of -- that's not a question so -- blow through those pretty quick on your paperwork that you start to lay out.
Then we're going to try to be current with everyone else that we -- And that's where you think -- coming up a little bit short some months correct yeah.
OK and so you've got to prioritize those people.
And basically unsecured.
Is the last people to get paid.
And so not a necessity payment but if you have a furniture payment for example it would be before master card or student loan.
And then as you prioritize.
You figure out who it is -- -- you first.
And they've got to be first right.
Yes and so you can get a hardship deferral on -- student loan credit cards of damage your credit drive me crazy but they won't so your medical -- so your butt pretty -- That -- and so you listed down like that we're gonna take care of those first and that doesn't mean it will.
All we're trying to do is get a little something to each one of them to keep them somewhat happy okay that's.
First -- here and it sounds like you're just coming up one or two bills.
-- I have enough money to knock all the way to the bottom of that right yeah.
So now you've got to stop and say okay.
What can we adjust temporarily.
Or permanently to get this to balance.
Because we need to get into the gravy so we can pay some extra on these deaths which will be the next -- so we'll -- have a garage sale.
We've got to work more extra jobs or more over time.
If we got a car -- we need to sell the car so we can get rid of the car payments so this -- start to balance.
What are we got we can -- that'll affect these numbers.
No the more you -- -- is obviously the most important thing.
And look what would be your cake while at work paying the mortgage weekly and it needs to be paid -- look at that play right -- break it down or away is that.
It's actually getting an extra payment -- human right.
Because now with the situation we're in right now is that -- that you would recommend.
Because you need that extra payment a year.
You need that extra 112 which would that would balance your budget.
If you got money coming out for 401K.
Yeah stop it OK do you get balanced.
Your first -- can occur.
You get the tax refund last year -- -- -- bag it's something we had just got your W four yet.
And clarity have -- has he adjusted his W Ford affect the difference home now.
Now but it's something we -- that before a phone -- actually on vacation the quake felt on.
How much was the tax refund.
-- and so that's over 500 dollars a month too much coming out of -- -- my.
And so he needs to adjust just take home pay is -- exemptions.
-- deductions until he gets another 500 bucks a month home.
Because all you do is low in the government 500 bucks and I'm paying you interest on it every month.
Nine actually if you stop the 401K.
You put the house moved back on regular and you adjust the W for your balance.
But -- didn't you.
Yes scary you know that that's.
I even if everything that you don't think of crying I Oden when -- look at the public and.
Now what you've done that -- we need to take it to the next step and that's little start working your total money make over we gotta say for that thousand dollars.
The beginner emergency fund and there -- relish those debts smallest to largest to start paying them off.
By the united stated that the emergency fund -- here but there at the Americans became pretty correct.
Yeah well because you've not you've been underwater.
-- you gotta stay above water to keep the total money -- -- And if we do those three adjustments I think you're gonna stay above water for awhile and that will go back over to come back -- the 401K a baby step four and so long.
So listen to copy the total money make over what shall teach you what to do -- your current.
But I think we walk -- some -- here to get your current.
-- by the way run -- work and make sure he's not got a budget gimmick insurance.
Short term disability accidental death cancer insurance I kind of crap coming out of his -- to -- -- cancel all -- and stop all that stuff.
You need basic life insurance and long term disability insurance and basic health insurance -- of the things you need.
And then you get yourself and balance then you can live to fight another day -- a little on this stuff hang on we'll get your free copy of the total -- make over.
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