Determining Wants vs. Needs while Budgeting

 Posted on June 13, 2013 in Bankruptcy

It has been reported that unemployment rates are improving and that people are spending more money than ever. Bankruptcy filings are falling in number in many parts of the country. Even though it seems that Americans are doing better financially, you can ensure continued development by creating a budget. When preparing your budget, you have to determine what the necessities are for you. Some basic necessities that must be included are food, shelter, utility service for that shelter, clothing, and transportation. The problem with budgeting these necessities is the degree to which each is carried out. Everyone needs a place to live. However, a place to live must be affordable within your budget. For example, if you have a small family, you don’t need to have a large home. Instead of spending the additional money on space that you do not need, you can be setting that money aside for savings. This also means that you do not have to have 75-inch television sets in every room. You also need to have utility service but, that does not mean that you have to have every single channel that your TV service provider offers. Considering a Netflix subscription in place of cable, or opting to open the windows and run fans instead of an air conditioner are responsible options for sticking to a utility budget. We all need food to survive. This does not mean living on fast food or fancy restaurants is necessary. Fix just enough food to ensure that all of it will be consumed by your family instead of being wasted. You can also shop at stores that are less expensive, such as a store that doesn't have employees to remove shopping carts from the parking lot or one that does not provide plastic bags for free. When considering clothing and transportation, again, be cost efficient. You do not have to have a Ferrari when an inexpensive car will do what you need. Secondhand clothing stores are less expensive and often have quality clothing. The point is to live within your means. Stick to your budget and do not spend money that you do not have to spend. If you find yourself considering bankruptcy, an experienced San Antonio bankruptcy attorney can assess your situation and advise you of the options available to you.

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