Expert Debt Management
Expert Debt Management
Budgeting can seem like a hard task, just the sound of it "budgeting" makes people cringe. It can bring up thoughts of having to squeeze out every last dollar and pinch every penny in order to survive, but it does not have to be that way. Budgeting when viewed differently can be not only pleasant but a great way to save money to be able to pay down debts, use for investments or just using it to purchase other goods.
But where does one start? How do you do this? Sure its easy in grade school to write out a budget of what comes in and what is spent but in real life there are so many more variables. What about that extra dental cost, car repair, yard clean up, roof fix, lost item that needs replacing, chiropractor, broken fridge, plumbing, heating, air conditioning etc... the list continues, of things you forgot to budget for? How does one compensate for such expenses not thought of?
Where My wife and I started was for one month we kept each and ever receipt. If we paid cash for something and there was no receipt (such as a cup of coffee etc) we made up one on a piece of paper. For one month we just lived as we did, we tallied up the amounts, what we spent on groceries, restaurants, gasoline, etc. We then included utility payments, phone, cable TV etc. It became quit evident where we were spending our money. And it also became just as easy to see where you are willing to cut little expenses in order to save. For some, purchasing their morning bagel from the bagel shop is an expense they would not want to give up, but instead could see knocking back the full cable TV package. It becomes a personal choice of the things you want to cut back. You can't have someone tell you. But it is important to realize that cut backs need to be made if trying to budget. You then budget out what you want to let yourself spend in each area. Keep mental and paper notes if need be although it may be a little uncomfortable at first, it become much easier once you have done it a few times. You soon become so used to it that you don't even think of it. You get used to knowing how much you are spending.
- As far as other expenses outside of what you have budgeted, always allow for some savings, whether it is 5 dollars a week or 500, whatever your budget allows. Keep this in some kind of financial account that is making fair interest on it but also keep it flexible in case you need to withdrawal some to pay off those unexpected bills.
Disclaimer: This site is not , nor should it be taken to be, legal, financial or other professional advice. It merely provides a generalized guidance and generalized information only. Consult a financial advisor or an attorney to discuss any legal or financial issues involved with credit and debt decisions.
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