You want to feel in control of your money, especially when you have bills like credit card debt or personal loans. Sometimes, thinking about a “budget” can sound like a chore, or like it means you can’t have any fun. <\/p>\n\n\n\n
But resist the urge to write off budgeting. When you\u2019re working your way out of debt, a budget <\/a>is actually your best tool for feeling in charge of your money!<\/p>\n\n\n\n Let\u2019s walk through creating your own debt-payoff focused budget. Feel confident about paying your bills and achieve a feeling of overall peace about your finances<\/a>. It’s about making your money work for you, so you can live with less stress (and more freedom!)<\/p>\n\n\n\n Your budget is more than just a picture of your money. It helps you direct your money to attack your bills and build a better financial future.<\/p>\n\n\n\n Your budget helps you see clearly how much money comes in each month and how much goes out. Seeing the lifecycle of your paycheck helps you find money you might not even know you have \u2014 a perfect opportunity to pay off bills faster.<\/p>\n\n\n\n When you track your money, you can easily spot places where debt can creep in. Maybe you use your credit card for small purchases without thinking, or perhaps all using a Buy Now, Pay Later<\/a> program is costing more than you\u2019d initially imagined.\u00a0<\/p>\n\n\n\n Collect your paystubs, your bank statements and all your bills. Ensure you find all your bills for debts too, whether they\u2019re credit card, personal loan, car note, mortgage or any other open account.<\/p>\n\n\n\n Figure out how much money you can count on to earn each month. This is your “take-home pay” after taxes. If your pay changes sometimes, try to figure out your average pay over the last few months. <\/p>\n\n\n\n These are the bills that are usually the same amount every month. Write down:<\/p>\n\n\n\n These are the costs that change each month but are still important. You need to watch these carefully.<\/p>\n\n\n\n You can track these using a notebook, an app on your phone or a simple spreadsheet. Tracking<\/a> helps you see where your money goes without you even thinking about it.\u00a0<\/p>\n\n\n\n Now for the fun bit \u2014 add up all the money you make in a month. Then, take away all the money you spend on your bills and other costs. The amount left over is your surplus. <\/p>\n\n\n\n This is the secret sauce to getting out of debt. Use these excess funds to tackle your most annoying or distressing debts first. Even if you\u2019re in a debt consolidation program \u2014 like this excellent service<\/a> \u2014 devoting extra funds can help you expedite a process already designed to get you debt-free faster. It\u2019s like supercharging your payments!<\/p>\n\n\n\n Your budget works best when you are honest with yourself. It’s okay if you spend more than you thought in some areas. The goal is just to see the truth about your money, so you can make better choices.<\/p>\n\n\n\n Look at your budget. Can you find small ways to spend less?<\/p>\n\n\n\nWhy Your Budget is Your Secret Weapon<\/h2>\n\n\n\n
Where does your money go? <\/h3>\n\n\n\n
Where is your debt hiding?<\/h3>\n\n\n\n
Creating Your Debt-Busting Budget<\/h2>\n\n\n\n
Step 1: Gather the Data<\/h3>\n\n\n\n
Step 2: Know Your Income <\/h3>\n\n\n\n
Step 3: List Your Fixed Bills<\/h3>\n\n\n\n
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Step 4: Track Your Spending <\/h3>\n\n\n\n
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Step 5: Find Your “Extra Money” for Bills<\/h3>\n\n\n\n
Food for Thought: Importance of Honesty <\/h3>\n\n\n\n
Step 6: Find Places to Save<\/h3>\n\n\n\n
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Step 7: Go on the Offensive<\/h3>\n\n\n\n