i feel like i need a financial rescue plan.

[Astrid]

Frugal and Thriving is a pretty good blog for budget tips, savings, along with some really good posts about actual budgeting and debt reduction.

Whilst we are in a better financial position now, it is helpful to have a plan in place for debt reduction. So have that goal and to see the affects of payments. Write all debts along with what you have already done with your day to day expenditure.

[Gigi]

understanding what a WANT is, and what a NEED is, is what my financial education class began with. It sounds so basic, but it's so important.

i THOUGHT me buying a carton of Iced Coffee, every time i went out, was a NEED, but it actually was a want. I traded in my "habit", and changed it to "taking a bottle of tap water with me when i go out EVERY TiME" and it's worked. Took time, but it's working now.

I saw a financial counsellor for free, and she made me a spreadsheet. Looked at all my bills for the last year, worked out the fortnightly amount i needed to put aside, for each bill, to make sure they got paid. Then the credit union helped me work out how to set up automatic fortnightly BPay deductions, so that every fortnight for example, $30 gets put on my Electricity Account. Did that with other bills as well. No more late fees, no more worrying about coming up with the money, much less stressful.

When you get any government bonuses (family yearly bonus) or other bonuses e.g tax rebate, spend it wisely. Pay off most pressing debt e.g electric bill and start up an auto deduct scheme with your electric supplier. On a daily basis, you rely on electricity alot. You don't need the stress of being cut off, and having to beg from relatives when it happens. Not as much fun as blowing the money on something fun, but you'll be glad once you've done it.

Get creative about things you can cut down on. I keep my heating bill low by wearing two jumpers inside my home in winter. Sit down to telly/computer, put a rug on your lap instead of turning on heater.

Let rellies/friends know you are after 2nd hand kid's clothing.

When friends/rellies say what do you/the kids/dh want for your birthday/xmas etc, have ready a list of stuff you/kids/dh actually NEED. Or a general voucher from a big store, so you can get what you/they/he needs.

Whenever you go out, take food and drink from home - it's guaranteed, you always are thirsty and hungry when you go out. Would your relatives have your family over for a weekly meal?

work out your financial leaks - track your spending for a week
i had to do this in a financial education course, i worked out how much i spent on Iced Coffee cartons FOR A YEAR!!! What i thought was a LITTLE extravagance, was really costing me a bomb. I now take a bottle of water with me everywhere.

Get financial advice
You need to know, bottomline
WHICH is the best (cheapest) option?
Sticking with the mobile plan til the contract expires - which would cost $???
Breaking the plan and paying it out - which would cost $????
you can't choose, until you have the info in front of you.

Financial counsellors see people every single day, that are in financial doo doo, due to mobile phone contracts - they are used to dealing with this type of thing, it's ok.

You WILL get out of this mess, cos you are asking for help. You've taken the first step, on a long journey. Good on you.

all the best hon.

[Gigi]

Frugal and Thriving is a pretty good blog for budget tips, savings, along with some really good posts about actual budgeting and debt reduction.

thanks for that Astrid, i will look that site up.