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Where Has All Our Money Gone? Shrinking Paychecks and Budgeting by Nikki Willhite I admit, I am puzzled every payday. I have been left "lost" and "bewildered" by many things in life, but the lack of money in today's paychecks has to be on the top of the list. Sure, I can add up the numbers, and subtract the deductions. However, no matter how many times I do it, I just can't wrap my mind around the fact the the actual amount of money that ends up on the paycheck and in the bank is just a fraction of the actual money that has been earned. WHERE HAS ALL OUR MONEY GONE? Deductions, deductions, deductions! Every year they take away more money for everything. Health insurance and other company benefits, while they are nice, just continue to rise. We are simple folk. We only have a couple of what I would consider large expenses each month. Why is it so hard paying our bills? Some people don't even have jobs. How are they getting by? One of my sons has 4 children. When he changed jobs, he had to wait 4 months before he qualified for his new health insurance. I have to tell you, I was holding my breath for those 4 months. There was no way they could afford Cobra insurance, so they just did without. One major healthcare incident could have put them back for years. Healthcare is expensive. My husband has stents in his heart. Each one of them cost around $100,000. No, not a misprint. I can't even imagine going without health care insurance.  SO HOW DO WE MAKE ENDS MEET IN THIS CRAZY ECONOMY? First of all, you have to keep your expenses down. If you have a shortage of money, you have to give up things that you do that are unnecessary. Forget about eating out.  Eat at home, and learn to enjoy simple food. Typically people spend 15-20 percent of their income on food. You can do much better than that. Quit buying so many changes of clothing and quit wasting money on your fingernails.  Scale down vacations, and do more free things- like visiting the library and walking for exercise. If you have repeating expenses you cannot afford, get rid of them. Cars are for transportation, not status symbols. You should not be paying more than 20% of your income for car expenses.  Again, you can do better. If you have to move, do it. If you are paying over 40% of your income for your housing, you are in trouble. Your financial security and peace of mind are worth more than a bunch of space that you have to heat and pay the rent or mortgage on each month.  Do what it takes to accumulate an emergency fund, even if it means getting up at 5:00 in the morning to scrub floors. Get rid of your debt, and pay cash for everything. If you pay cash for your purchases, statistically you will spend 40% less money. I use to love my credit card, just for the rebate, but now I only use it in emergencies. Once you start paying cash, you will change your spending habits. When people don't change their behavior, they end up thousands of dollars in debt. You have to wonder why,  somewhere along the way, they didn't recognize if they didn't change things, it would only get worse.  Why let $10,000 of debt become 20...and then 30... and just keep growing? Face the situation, and do what you have to do to stay within budget. No one likes giving up things that they are use to having. It is hard for all of us. Once you have had something it is extremely difficult to give it up. Make the tough calls, even if you have to move into your parent's basement.  You will survive. It may hurt a bit at first, but in the end, you will be happier. There is nothing wrong with starting over. Sometimes that is what it takes. About the Author: Nikki Willhite, mother of 3 and an interior design graduate, has been writing and publishing articles on the topic of frugal living for over a decade. Visit her at www.frugalhappyfamilies.com - where you will find hundreds of frugal living tips and articles. Frugal Happy Families- more than just money!

 

 

 

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