This reference article outlines the obvious, but it’s important to understand how often people over look these 5 things when concerns of their credit score is thrown into the mix.
We have 5 essential expenses every month that we must take care of first and foremost, and they can be mixed up into any order of priority as long as they are all handled.
- Eat. You have to eat. You’re a biological creature and you need food to live.
- Clothe yourself. Don’t want to be caught out in the cold or exposed to the sun, and the rest of society without some basic coverage.
- Sleep. You need to keep a roof over your head.
- Lights. Make sure the household has the proper utilities, at minimum, electricity so you can iron your clothes, and see.
- Transportation. Whether it’s a car or bicycle or walking shoes to get to the subway, make sure you can get to and from work.
These 5 things are at the very top of your budget. If your income doesn’t even allow you to fulfill these basic requirements, then you either have an income crisis, or most likely, your housing expenses are too high. I could also be some other form of unnecessary extravagance, like shopping for your food at a high end grocery store or driving too much of a car. You’ll have to reduce your lifestyle or improve your income. There’s no other way to do it.
A pilot flies the plane. He doesn’t fix the engine. The technician installs the indicator lights, but the pilot needs only to know one thing. What does it mean when it’s on, what does it mean when it’s off…