Financial budget on time. Check out 10 tips to escape debt
Who has never spent a little more and at the end of the month came across an empty wallet? If you find yourself in this situation every month, it’s time to check out these tips to optimize your financial budget.
Before we see the 10 tips, let’s advance that doing Financial Planning is a very important start to getting out of the red. And here on the blog, we already talked about it. Read here!
Did you know that there is a difference between financial budgeting and planning? The financial budget is for you to know exactly what goes in and what goes out of money in your home; making planning possible. Planning is where you are going to apply the revenue you have, whether it’s renovating, building, buying a car, etc.
For this you will need to write down everything! Our tip is to build a little plan on the computer, making your life easier. Write down everything that goes into the family budget. All salaries, bonuses, etc. Then all the family expenses. Then you will know where you spend the most, which can save you money and start making future plans.
Check out the 10 tips to stay with the Financial Budget in blue
How much do you owe?
This is the first thing you should know clearly. If you have no idea, it is time to start putting at the tip of a pencil or in a spreadsheet, all your expenses, what you have paid in installments, how important each one is and whether you are paying high interest. If so, time to follow the next tip:
Many people running into debt rush to look for credit to try to pay off debt. But first, how about looking where you owe it?
Debt negotiation can be a good way to improve your financial budget, either by lowering interest rates or even exempting you from overcharging. Remembering to negotiate at the time of purchase is also important; any discount is very worth it.
Where do you want to get?
Create goals. It looks more like those economist speeches. But it’s true! When we create goals and try to reach them, our behavior and discipline change a lot.
Your challenge can start in saving a percentage of your salary. Next month increase this value. Set a goal of how much should be left by the end of the month and strive to achieve it.
Which account to pay?
Lost with accumulated accounts? Know which one to pay first. Use the criteria which is most important to you. If your car is a source of income, this could be an account to pay off as soon as possible, for example.
If the debt is older and contains more interest, choose to pay first. Otherwise, the snowball tends to grow bigger and bigger. If you don’t have one as a priority, you can still choose the one that gives you the biggest discount on a single payment.
Control your expenses
If you don’t know how much you spend each month, how much balance you take into account, it’s time to start paying attention to this very important detail to get your financial budget up to date. Our tip is: Be part of the digital world.
Use the applications from your credit card, checking account, etc. With them, you know how much you are spending, limit, balance, among other important numbers. And it keeps the financial life up to date.
To put the financial budget in blue, start the month knowing what you need and how much money you have, it helps you a lot in tip 3, for example. Planning allows you to have an emergency fund and not stifle the unforeseen.
The credit card is great for helping with financial control, but at the time of squeezing it is best to overlook it. As we said, the situation may be temporary, so spending only on the necessary is indispensable at this time.
How will you pay?
Stay tuned, if you have the money paid off your debts at once, choose this option. In addition to stopping paying interest, you get credit back in the square. If you need another way to settle the bills, evaluate what is best for your pocket.
A good example is the card statement. If you are unable to pay your credit card, avoid splitting the bill or paying the minimum. The revolving card usually has high interest. In this situation, it may be best to choose the personal loan as it contains the lowest interest rates. Look for different financial institutions and run simulations. To get credit, there are several options, one of them for example is home or vehicle secured loan.
Beware of installment
Parceling your purchases can give the impression of paying less. But from $ 20 to $ 20, the account is unmanageable. Parcel out only the indispensable and try to do it a few times.
Paying your cash bills is the best thing.
Want a card tip for your purchases? How about applying for the Federal Credit Card Savings Bank.
If you can even save a small amount on your own, congratulations! Guard on savings? So stop losing money now. There are other investments that yield more.
Just like the Treasury Direct. Take the time to learn how to invest and make your money yield far more than savings.