Fact: Most people have to admit at some point in there lives that the later of the two and thats not a great place to be.
- Are you being forced deeper into debt?
- Having to make unwise financial decisions, ie. pay day loans, pawn brokers?
- Inability to save?
- Conflict in your relationships? Stressed out?
All you need to do is employ some simple tactics to start a u-turn on your road to debt, get started saving and know your finances. Get back in control of your money. Your probably thinking how can the words simple and budgeting possibly exist in the same sentence. Don't stress budgeting is very simple we are the ones that make it hard on ourselves by using basic budgeting method's and planing for the long term as well as the short term. What we want to do is tailor a solution that is specific to you but flexible so as your life changes so dose your budget.
Back to the basic's
Always spend less then you earn. seems pretty simple but a lot of people either choose to ignore that advice or there expenses simple just keep adding up. Lets face it, its human nature to want more but living beyond your means isn't sustainable. You might get buy for a year or even two but it eventually catches up with you and the hole you dig yourself into can sometimes be insurmountably.
Avoid unsecured debt's
It's unrealistic to think you can make it threw life with no debt what so ever and honestly some debts are good. What! Don't shun me yet. Some debts can have a positive effect on your overall financial health because they help your secure capital assets like your home. However the type of debt's we want to avoid or keep to a minimum are, credit card debts, pay day loans, high interest unsecured loans and others of the like. i can pretty much guarantee they will keep your personal budgets from balancing.
Be Prepared.
I know I've said this before and ill say it again. Be prepared for anything, life's ever changing and we both know when something something starts going right then there will be something to throw a spanner in the works.
What you need is what my Nan calls a rainy day fund. Money you save and don't touch unless there is an emergency or unexpected expense. I sometimes add a little extra and buy a big ticket item but there must alway be enough there to cover me is anything goes wrong. For example, i just bought my partner and i two brand new laptops, nice and expensive ones, now even after taking those out of my account i was still left with 4500 dollars of rainy day money.
Make the Most of what you Have
Again this means living within your financial means and keep in mind your long term financial goals, other wise is like just having the money sitting there. Why would you work so hard for your money just for that, instead put your money to use. My suggestion is pipelines, but ill cover that off in another post.
Now budgeting has the tendancy to uncover some unwelcome truths, that can make it a little scary or painful. Unfortunatly you'll just have to deal with it, a budget is only as good as the info its based on. So be honest with yourselves and paint a clear picture of both your income and expenses. Simple ways to do that include keeping a expense journal, keeping a detailed record of all your expenses gives you a look at where you can cut back, or collecting your receipts. They are bith great ways to work out where all your money goes.
Till next time keep these in mind they help,
Emily,
