Are you ready to find financial stability by setting yourself a budget challenge to meet and meet? What are the challenges you currently face?
Are you spending too much every week? How do you know how much to spend and save? It’s time to dig deeper and find out exactly what’s going on with your finances and achieve a positive outcome.
How do you start your budget challenge?
Thinking about the budgeting process can be overwhelming for you, and understandably so. If you’ve been spending money without planning ahead, this may seem like a daunting task, but it’s a much more accessible task if you sit down and get yourself together.
There are so many things to look at; it helps to brainstorm and think about the financial goals you have for yourself. If you have goals, you can create a game plan and set a goal!
Step 1: What are you currently struggling with financially?
Now that you’re focused and ready, it’s time to think about what you can change about your financial situation.
It can seem like a lot to think about if you don’t approach it in an organized way, so here are a few things to start with when organizing your budget task:
– Make a list of your bills
-Make a list of your weekly expenses
-Make a list of what you can cut out to free up more space in your budget.
-Collect all your gift cards and coupons to see where you can save.
-See how much income you have and how much you spend monthly. Are you spending more than you earn?
-How much do you save each month?
Now create your lists so you can move on to step 2!
Step 2: What are your goals?
Are there things you want to do but don’t have liquidity? Once you have established your spending habit goals, you can also plan to set your savings goals.
An emergency fund is critical to financial security. If you don’t currently have one or want it to be higher, this is a great goal to set for yourself. Even if you only have room to save $5 for your paycheck, it will grow over time and get to where you want it to be if you stick with it and save!
The same goes for anything else you need to budget for overtime. How long have you been gone? Build a vacation fund and save a little from each check so you can finally hit the road!
Try starting your list of goals with three savings goals and three cost cutting goals. This will help you stay organized and help you get what you want with your finances.
Keeping a spreadsheet with your goals to document how you’re doing each month also helps you keep up with your budget goal.
Step 3: Time to get started!
Now that you’re organized and have a plan, you can get started! Keeping up with your goals can be difficult at first because you’ll be breaking old habits and developing new ones.
You must work on your old habits while creating new ones and not revert to old habits. Do you usually stop at Starbucks on your way to work? I love Starbucks too, but does this expensive cup of coffee fit into your new budget? Or can you make coffee at home and put that $5 into a vacation fund?
What else do you spend on weekly? Are you spending too much on lotteries, restaurants, bookings, shopping, etc.? Now that you know what you need to cut, stay consistent.
Once you reach your new goals, you can set new ones and continue your financial growth!
Do you think you can’t create a budget problem because you’re in debt?
You can deal with debt in this way as well! Add the amount you owe to your monthly expenses list to make sure you pay at least the minimum each month. As you clear your budget, you can make room in your new payments to overpay the minimum amount and reduce your debt.
Depending on your situation, you may also go into debt consolidation or negotiation. There are several ways to approach debt consolidation and negotiation. Keep in mind that if you have a debt collection debt, you will be able to negotiate its repayment and come to an agreement if you wish.
When you call to speak with debt collectors, don’t let them bully you into paying right away. You have bargaining power when it comes to negotiating because by the time the debt gets to collection agencies, it’s already bought for less than it was originally worth! Make sure you negotiate the lowest price, and if that’s too much to take care of in one payment, set up a payment plan with a collection agency and add it to your new budget. As with your savings accounts, you can overpay and deplete them over time.
If you have debt but it is not in the process of being collected, you may consider debt consolidation by arranging a balance transfer, refinancing or personal loan. The reason for doing this, rather than holding on to various lines of credit, is to save on minimum payments and interest.
Even if you qualify for a higher interest rate, it will likely cost you less interest payments over time because you will have one payment and one interest rate, rather than adding up all of your minimum plus interest each month. Always do the math first before doing anything. Also, make sure you can keep up with your monthly payment in your new budget.
It’s never too late to start budgeting. Creating a budget challenge for yourself is a great way to set goals for yourself so you can improve your situation and keep growing!
This article was originally published on Hello Sensible