Skip to main content

Planning A Budget – Solve Debt Issues


We think negatively when we hear the work “budget” – basically, it is just a simple plan to have a better picture of your incoming and outgoing funds. It is a way of steering and taking control of your money.

Who should budget?

Anyone will benefit from a budget, it is not just i8mited to people who are having financial problems. One will be able to distinguish and realize the difference between feeling in control and being able to plan ahead.

If you are spending less than what is coming in, you can use a budget to work out how much you can “save” each payday. We call it “paying yourself first”.

If you are spending more than what is coming in, you can use a budget to see where that extra fund is being spent with. And you can also check on where to cut down when it comes to additional expenses.

Building your budget

In creating your budget, we simply add up how much fund is coming in and out of the household coffer, then work on the difference.

The result will either money left over (surplus) or not enough money to cover the spending (deficit). Your aim is to “save a surplus so you can have some funds left in your pocket, or to save for your goal/s, or use to pay off debts.

Use a budget planner

There are various budget planner that can be downloaded. Check online which of the budget planner app fits your budgeting needs.

What is needed to have a budget?

Your budget needs to be accurate, or it will not work. We can’t fudge it! Few things to do:

Record your daily spending. – Receipts, bank statements, and bills from the past 3 months. This will show all your regular expenses.

Make a list of annual costs. - These are things we pay for less regularly like vehicle-licensing, medical expenses, gifts and holidays.

Income info. - Any money such as pay, benefits or allowances or interest earned on savings.

Savings. - Details of any regular savings we already have.



Track your spending

Once you’re done in setting up your budget, you need to observe how it is working in reality. You can also keep a spending diary or use an online tool or phone App. Then you can adjust your budget as needed.

Making the most of your earnings

Budgeting is not just about watching our spending. How much we earn or save also affects whether we have excess money for saving or paying off debts.


If your income doesn’t grow, you’ll effectively earn less each year just because of inflation. Hence, you need to plan your needs to include goals for growing or increasing your income, as well.

Comments

Post a Comment

Popular posts from this blog

Fool Proof and Easy Ways to Thousands of Funds

It’s a common knowledge that skipping your daily dose of your “to-go” coffee and eating out will help boost your savings. Let’s be bluntly honest, this can be a real saver, especially for the young ones starting to build their financial bed. But, in order to save, this should not let you dampen all your nights at home eating the simplest of foods. ***You need to set a goal as to how much you are looking at for your savings.  Make sure it should be a realistic goal! Here are some hacks that could save you money but will not at least make you sacrifice your lifestyle too much: > Keep a record of your savings – It will help you pinpoint any waste spending by showing where you can cut back. Seeing the amount of savings increase will also help you to motivate further. > Learn the art of negotiation – If you feel that you are paying too much on your purchases or on your cable/internet subscription, perhaps you can ask for discounts. A 10 – 15% discount taken out fr
Post a Comment
Read more

Seeking Debt Relief from Your Creditors

You can no longer concentrate and sleep properly thinking about your financial problems  .Many people fall into financial trap that leads to  DEPRESSION. One may admit it or not, most often than not, financial  problems or issues play a sensitive part in one’s daily life. Once the  Creditors start calling you randomly even during unholy hours, sending  notification letter/s, or worse, collection agencies will deal with you  personally. When you are really pressed for options, tendencies would be to borrow  AGAIN from another creditor/s or loan sharks! If you give in to another  financial trap, you will never get out of debt in your lifetime, and  that’s a guaranty. You may owe some amounts from Creditors/Banks, but when you are in trouble  paying them off, the best option is to seek debt relief. You can arrange  for a certain period of time to settle your financial obligations with  your Creditor/s, while looking for ways to have additional earnings, such  as: Tak
Post a Comment
Read more

Applying that Brake on Your Debt

What will you do when your debt spirals out of control? Perhaps you no longer know where to turn next. A lot of us spend far beyond our means and cannot save adequately for future’s needs/emergencies. And more often than not, it spells disaster! What if you suddenly lost your job, or any other source of income? And you are in a mortgage, had a medical problem? What would you do now? Before you get trapped in this situation, or worse, bankruptcy. Observe these warning signals and steps so that you can take the right decision: KNOW HOW MUCH YOU OWE. - Some people doesn’t even have any idea how much they actually owe compared to how much they earn. Spending may seem be a satisfying and great outlet to relax, but NEVER forget to think about first on how these purchases are going to be paid. Are there any available funds to take care of them? Think about late payment fees and other surcharges that may be incurred. This can lead late payment fees and incur elevated interest rates.
Post a Comment
Read more