Starting A Budget
Budgeting is essential part of being a grown-up, there I said it If you want to live a comfortable life and achieve your financial goals, you are going to have to establish and maintain a household budget. Regardless of whether you make six figures or have a one person’s income to manage, a budget is a necessity.
When it comes to creating a budget it can be a bit of a hassle and a little intimidating. No worries, I’ve listed the steps to get you on the track to the financial freedom.
**Always know your credit score. Get a copy of your Credit Report online to learn your credit score.**
The first step is to gather all your bills and due dates. Also decide how you want to keep track of your budget. You can go the out fashion route and use paper and pen, tracking everything you pay out each paycheck. Just be consistent and honest with yourself. You can use Microsoft Excel or an accounting program such as Quickens. For me I am an iPhone user and since I’m such a busy mommy, having everything at the touch of a button was the easiest thing for me.
Mint.com has been great for helping me organize and manage our bills all in one place. I downloaded the app on my phone to keep track of all of our due dates and it has helped tremendously in keeping up on how interests we are paying, due dates, etc. It budgets all your bills for you and allows you to pay directly through the app. I have tried other tools in the past, but this is what is working for me right now.
After you have gotten all your bills in order, and due dates in line, the next major factor is to pay them on time! This is crucial to establishing a good credit score.
Since we have the basics in order, let’s begin to take control.
Find areas you can cut back
If you look at what you’re spending in the past 30 days and you find that you are spending money in areas for fast food and lattes and it is on something that you don’t need, please considering cutting these areas first. You can begin by reducing slowing. Take your coffee and lunch to work or school for 2 out of 5 days. Eventually you may get to 5 days, but you will see the savings add up.