BUDGETING YOUR MONEY
Do you find that your paycheck is just never enough? Is it becoming harder for you and your loved ones to have any sort of social life because you have no money left once all of your bills and expenses are paid? If you find yourself in this situation, or something similar, you need to re-evaluate your spending habits and better manage your money.
The best way to start regaining managing debt and getting control of your finances is to develop a budget. No matter how much money you make and spend, there is always room for change! If you are able to develop realistic spending limits for you and your family, and you keep them, your money will go much further, without having to eliminate everyday amenities.
The first thing you need to do is
examine where and how you spend your money. It may or may not come
to a surprise to you that a large portion of your hard earned cash
is being spent on items and services that are not necessities for
survival. For example, suppose you spend $8/day on lunch at work.
Multiply $8 x 5 days/week x 52 weeks/year. That's $40/week and
$2080/year! You can easily
your work related expenses by bringing lunch from home instead of buying. It may not be
practical for you to go from buying lunch everyday, to not buying
lunch at all. However, even if you bring lunch in 3 or 4 time/week,
its a start! Learn more about
expenses vs. discretionary expenses.
Control Credit Debt
According to IndexCreditCards.com, last year, the average amount of credit card debt for families in America was over $3,000. Credit card interest rates averaged around 18.5%. Therefore, it will cost around $6,000 to pay-off your $3,000 balance with the 18.5% interest when making only the minimum required payments. A good idea would be to use a credit card calculator and determine the length of time it would take for you to pay off your debt and how much money it will wind up costing you.
When developing your budget, try and eliminate your credit card debt as fast as you can. Eliminating this debt will free-up money that was previously being spent on interest; allowing you to save and/or spend your money elsewhere.
Once your credit card debt is eliminated, try and avoid incurring any more debt by not buying on impulse. Using a credit card wisely is difficult, but not impossible.
Cheaper rates for loans and
Financial planning for retirement
Good Debt vs. Bad Debt