Creating a budget, and sticking to it, is essential to a healthy financial position. Understanding and knowing where you money goes will help you to make responsible financial decisions. This is true even if you are not primarily responsible for paying your household’s bills. The key is to take your income, subtract your expenses, and then spend only a portion of what is leftover. When you spend only part of the excess, you will then be able to save for when unexpected expenses surface.
When developing a budget, be sure to take the following expenses into account:
● Mortgage or rent.
● Car payments.
● Student loans.
● Credit cards.
● Cell and landline phone expenses
When considering your car and mortgage payments, don’t forget about insurance and real estate taxes. If you rent and pay renter’s insurance, this amount should be included in your monthly housing figure. With automobiles, you need to include a figure for gas and maintenance. Also be sure to account for what you spend at the grocery store, and on entertainment. Be careful not to exclude any recurring monthly charges such as a gym membership or a toll road account. The benefits to budgeting your money are that you can avoid late fees and high interest rates, as well as easing the anxiety that comes with living from paycheck to paycheck. If you are able to identify places where you can cut back, do so. Even if a cut back is only temporary, you can begin a savings by cutting out your morning coffee or by taking your lunch to work a few days of the week.
If you need help with your budget, contact our office. Even if you are considering bankruptcy, a budget is still required for that purpose, we can help you put your expenses down on paper and figure out where your money goes each month. Call a Plantation, Florida debt relief attorney today for more information.