Your Ultimate Financial Management Tool

Budgeting Money tools budgeting

A Boy Scout uses a set of drawings to build a bird house. If he didn’t the roof might not be the right size.

Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all.

Not very smart of us, is it?

A money plan is called a budget and it is crucial to get us to our desired financial goals.

Without a plan we will drift without direction and end up marooned on a distant financial reef.

If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are…long term and short term.

Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.

A budget should never be a financial starvation diet. That won’t work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.

Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the internet. Just use any search engine you choose and type in “free budget forms”.

You’ll get lots of hits. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it’s something you can stick to.

If you don’t remember anything else from this post, remember this one thing: A budget is not a “you can’t have that” tool, it is a “you CAN have that if you budgeted for it” tool. Just think ahead a little, and you will put yourself in great financial shape in no time!

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Get Out Of Debt In 3 Steps?

card debt1-Make List of Your Debts
First of all know how much deep you are in debt. Many credit card holders are shocked when they know the total credit card debt to be paid. They avoid compiling this list. However, you will have to know your total debt status. List down lender name, date of debt, total amount to be paid and interest rate. Arrange list according to the amount owed. List the lowest balance first.

2-Pay Minimum Payments
Next start paying the minimum payment on all debts except the smallest balance. After your budget, take everything leftover and throw at that debt. In no time, it will be at zero, and then you move on to the 2nd on the list. Keep this routine up, and you should be debt free in literally months! The average time after getting on this plan is 2.5 to 3.5 years.

3-Start Frugal Living
For as long as you are in debt, start frugal living. Cut off your credit cards. Ask companies to not offer you more credit cards. Discard impulsive buying. When you get on a budget, and give every dollar a name at the beginning of the month, you will take control of your money instead of your money controlling you. Try to save every penny if possible. These few dollars added to minimum payment amounts will create a snow-ball effect towards your credit card debt payments.

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