Let’s Make a Budget
Having trouble developing a budget? You’re not alone. Millions of Americans try to handle their finances without listing their expenses—and get into trouble. A budget helps you establish your options, see what exactly you are spending money on, and see what you will be able to afford.
Start with a list of your total income. Include income from your job after taxes, alimony, child support, benefits, pensions, etc. Any source of money that is guaranteed should go under this list.
If you are taking money from your savings, include this in your income too. Only include money you have to take out; it is best to keep your savings for emergencies.
Now, it is time to face the truth. Your expenses are often shocking, especially if you have not kept track of them at all. You can start by reviewing your credit card statements and your check book. Make a realistic estimate of your monthly expenses and write them down. You can also add your payments on any debts you may have incurred in this column, but make sure you know which ones to pay first.
Ok, the hard part is over. Look at your budget and see if you are spending more than you are making. If so, look at your expenses and see which ones can be cut. Maybe a few less pairs of new shoes or a cheaper grocery store will do the trick. If your debt is more serious, it may be time to ask for help.
Making a budget is a learning experience. You must anticipate your income and expenses for the month and stick to specific spending habits. The first month you make a budget may be an experiment. Once you have stuck with your budget for a month, adjust it to a point where you feel comfortable—but don’t allow yourself to get into trouble!
Tags: debt relief attorney, expenses, Get Out of Debt, income, learning about debt, making a budget, serious debt