One of the most essential things to do as an adult is to come up with a budget, but it is also one of the most difficult tasks to complete. And even if you are successful in putting pen to paper or whipping up a quick spreadsheet of income and expenses, there is no guarantee that you will be able to stick to your budget. For a budget to work, it has to be reasonable and it has to be something that is within your financial power to follow. Without a workable plan there is little to no change that you will be able to stay on track with even the best of plans.
Two tips to having success with your budget include:
• Make sure your budget covers all of your expenses. Many expenses are hard to identify because they are not part of your regular recurring bills. It is easy enough to write down your house and car payment, but things that fluctuate like eating out or gas are harder to pinpoint. It is a good idea to write down all of your expenses for an entire month before you try to develop a budget. That way you will have a blueprint for what you typically spend and can categorize those expenses when you write up your budget.
• Make sure your budget leaves you a little bit of wiggle room, either for a little bit of entertainment or for an emergency. No one likes to just go to work and come home, so if you don’t account for a DVD rental or a night out with friends you will become frustrated. That frustration all too often leads to throwing the budget out the window and that is when debt is incurred. The same is true for an emergency. If you fail to plan for the expense associated with an emergent car or home repair, you will have to resort to loans or credit cards for these costs, and that does nothing but add to your debt load.
Even with a budget we understand that things can come up without warning. And when they do, we are here to help with options. One option is to file for bankruptcy. Other options include refinancing, mortgage modifications, or settlements with your lenders.
For help with your questions about finances and how to keep them in check, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that help get you back on your feet.