Coming up with a budget for your monthly expenses is one thing, finding a way to stick to that budget is quite another. Most of us are capable of writing down how much we make and how much we pay out each month in expenses. But all of us can fall prey to an impulse buy or fall into spending habits that deplete our reserve and leave us over budget and unable to pay all of our bills. In order to avoid this problem it is good to know what types of expenses you should give priority to in your budget and what long term financial goals you want to meet.
Three of the most important things to include in your budget are:
- Emergency funds to cover things like unexpected car or home repairs, or medical expenses.
- Realistic monthly expenses, which means if you spend $500 a month on groceries to feed a family of 4 and are running out of supplies quickly, don’t try to cut back in this area but instead find other spots where you can whittle away at your expenses.
- Saving for the future. This is just as important as saving for emergencies because it gives you the financial security needed to cover expenses when you least expect them or when you are no longer of working age. Being able to put something aside for retirement years will allow you to stop working at your own pace rather than at the pace of your savings account.
Doing all of these things can help you to come up with a budget that works, but we understand there are still times when there is just simply not enough money to cover the things that need to be covered. If that is your situation you do have options. There is the possibility you can work out a loan modification or get lower interest rates, but you have to work with your lenders to receive these benefits. This may not be something your lenders are willing to do if you are behind on payments, so another choice is to file for bankruptcy. Bankruptcy will free up some of your disposable income each month, which could allow you to stick to a budget and get a fresh start with your money. If you would like to know more about the benefits of budgets and bankruptcy, call our office.
For more information about money matters and bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.