Budgeting

One of the best ways to avoid bankruptcy before you get into trouble is top plan a budget. Most people at one time or another has said that they tried planning a budget and it didn't work. Most strict budgets don't work because the person planning the budget accounts fro every single penny and does not all leave any money for miscellaneous items. So people tend to rework the budget, usually in the first weeks and that is why they fail.

Every one plans a budget differently, so we will give you the basics to a simple budget that is easy to follow. First you want to see what would work better for you a weekly budget or a monthly budget. Most people find a weekly budget is easier to stick to than a monthly budget. So make a list with the following information, how much money you bring home every week and what expenses you pay on a monthly basis.

Though this is a weekly budget it may be easier to break down bills down by weekly payments rather than wait to see if you saved enough money at the end of the month to pay your bills. Once you have made your list, take your rent payment, take the total amount due and divide by 4 and that is how much money you need to set aside every week for rent. Then do the same with your other expenses and now you know what you need.

Every week take the money you need and put it in the bank or give it to someone who won't let you have it no matter how much you ask. That way you can't touch it with intentions on replacing it through the month because chances are you won't be able to. Stick with the budget every week, what can help is if you can cut out going out top dinner or buying a new handbag or pair of shoes or sports equipment that you don't need. Try doing without luxury for a while until you can get you situation under control.

What is more important going to dinner or putting that money towards a credit card payment? That will help a budget succeed, by you knowing what is important and what you need to do will make a budget work. If you don't take it seriously then you aren't going to save the money you need to pay your bills.

If you have trouble setting up your budget, go to the library or go online and see which type of budget works for you. We provide a very simple budget but some people think that a stricter budget will help them more. Some times a strict budget will do more harm than good. So make sure you know which type of budget you want and be prepared to stick with it.