Budgeting Problems and Bankruptcy: Part II

Why is it so hard living on a budget?  I believe it has something to do with the many unscheduled expenses of life. Do we carefully categorize every dollar spent?   Probably not.  As a result, we underestimate how expensive life really is.

Yesterday, I joined my wife for a quick trip to the local supermarket. We only needed a few items and it took about 15 minutes.  I saw what was in the cart.  Basics . . . nothing exciting.

I approached the register with my small cart, and stood confidently with cash in hand. As the clerk continued to swipe the items, I started thinking, “this is where so many people get themselves in trouble.  They just throw the balance on a credit card and worry about it later.”

Let me have the satisfaction of knowing that today’s daily bread (food) was paid for by today’s daily bread (money).  No need for a big credit card bill this month or paying finance charges on orange juice.

Like I said, this was just a quick trip to the store, not a major shopping. I wanted to set a good example to all who were watching this bankruptcy lawyer pay for his groceries.

When the clerk asked me whether I wanted paper or plastic, I knew the deeper question involved more than bag choices.  It was a reminder that I could choose to pay with paper, and not use plastic. I thought my $100 bill might surprise the clerk, but when the register grew silent, I was the one surprised.  There would be no change.  In fact, I needed to pay $.50 more.

As I left the store will lighter pockets, I wondered how many impromptu trips my wife and I make like this every month.  It is so easy to overspend.

Here’s my point.  If you use cash, you’ll recognize overspending.  Because when you run out of money, you’re done.  Credit cards, on the other hand, often fool us into thinking we can afford every purchase.  Just try living on cash for one month and you will start to understand.

Consider whether you’ve become too dependent on credit cards to make up for budget shortfalls. A skilled bankruptcy lawyer can then tailor a solution to help you remove excessive debt and create a reasonable budget for future living expenses.