3 Budgeting Tips For The Financially Challenged

Posted by Ladawn on August 3rd, 2021

Budget, budget, budget! You hear about this all the time. Why? Because it is so important that it bears being repeated over and over again. If you have a family, formulating a family budget is in order. For one, a budget gives you an accurate preview of the money coming in and the allocation saving money for necessary expenses like housing, food, utilities, health care, insurance and so many more.

Bad habit one:spending more than you earn. Perhaps you think this can't be possible but if you find yourself dipping into savings or using credit cards to pay for bills this is a sure sign. Beware, as before you know it your savings will be gone and credit cards debt laden.

Always Be Able To Manage Your Debt - Even though you have credit cards for small businesses, it does not mean that you can go on a shopping spree right away and max out your cards. Business cards are the same as personal cards in terms of controlling the amount you place on them.

For the next month, you need to keep every receipt so that you can track every penny you spend. Have a special folder or large envelop that you stick every receipt in as soon as you walk in the door.

If you are looking for a way to reduce your credit card debt, then a few Budgeting Tips can help you. The first thing that you should do is make a list of all of your accounts, the amount that is owed, and the interest rate you are currently paying. Although your account may have been "zero interest" at one point, it more than likely is not any longer, so make sure you use the current interest rates.

Set Goals & Rewards - If you're not measuring your success and failures, then why are you doing it? If you can set goals for how much you want to spend and/or make that month, you can set rewards that will motivate you to stay on top of your budget! Rewards motivate all of us! Maybe next month you can give yourself an extra to spend for leisure if you can keep you "misc. expenses" to a certain minimum.

Other budgeting tips that you should be aware of are to not use anything but cash unless what you are buying will last longer than it will take to pay it off. So, that means not to use your credit cards for meals, clothes, or a movie. Also, try to resist applying for more cards when you are already in debt, or your troubles will just multiply.