How to Make a Personal Budget and Stick to It

How to Make a Personal Budget and Stick to It

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A personal budget is paramount for financial success, but getting started could be overwhelming. Many folks are tired of getting to the end of their budget before the month ends. Yet, there are ways to get rid of this issue. Money management could be really tricky. However, with determination and discipline, it’s possible to make the money work for you. All you need to do is create a simple personal budget that you can stick to. Here are easy tips to take into account when making your personal budget.

Check your income and expenses

First of all, write down your monthly income and expenses. List your earning sources and the income thereon. If you think that you earn less and have enough time, take up a part-time job. That will add some much-needed cash to your monthly income.

Assess your monthly expenses. Try to weed out those expenses that are unnecessary. Common examples include spa visits, frequent cinema tickets, and similar expenses. This will limit your expenses and keep them to a certain level. Ideally, you want more income than expenses.

Change your spending habits

Many individuals buy groceries and other necessities almost every day. If you’re into this habit, you may want to change it. Instead of buying groceries on a day to day basis, buy it once a week. Aside from saving time, you’ll save enough money by way of bulk purchase.

Additionally, find out ways to save money on shopping. For example, if you think that buying items on weekends would save money, shop during weekends. Likewise, use promo codes and discount coupons when buying groceries and other stuff. All these things will cut down your expenses to a great extent. Here is how you can save money on groceries.

Do away with debts

If you’ve debts, a major portion of your income is being used to pay off interest on your debts. Although repaying interest and debts are inevitable, you could make changes that can save you money. For example, try to list your debts in such a way that the debt with the highest interest amount is on top of your list.

Now use the money you save each month (as explained above) to clear the high-interest debt. Once you clear this debt, repeat the process for other debts till you get rid of the debt completely. When you’ve repaid your debts, hoard a part of your savings for unexpected emergencies. Also, invest some portion of your savings for a healthy financial future.

Bottom line

Planning your personal budget effectively is important for a hassle-free and stress-free life. All it takes is a little bit of homework, determination, patience and time. With a well-planned, realistic budget, you can ensure sound financial standing that will enrich your wealth in the long run.

3 Options for Debt Relief

3 Options for Debt Relief

So you’re seeking options on how to get out of debt! Perhaps, you’ve piled a significant amount of credit card or high interest debt. Maybe, you’re struggling to clear your small business loan. No matter the situation, it’s possible to get rid of debt. However, you should research and know the options to become debt-free. Here are 3 popular options for debt relief.

Debt Consolidation

If you’re unable to clear your debt due to low monthly income, debt consolidation is the best option. Without getting a hit on your credit, you can nix all of your debts easily. In debt consolidation, all of your debts are combined into a single payment. Also, the rate of interest is pretty low on the new loan. Instead of managing multiple debts, you will have to pay one monthly installment to one creditor.

Debt Settlement

If you’ve sizeable debt to your name, debt settlement might be the right option. In debt settlement, you don’t pay off your entire debt. Instead, a negotiation is made with your creditors to reduce the debt. You can carry out the negotiation process on your own or hire a settlement attorney. Hiring a settlement attorney is a better bet. A reputed attorney will negotiate with your creditors and could reduce the debt amount by 60 to 80 percent. Note that your credit will be hit for a short time until you clear the debt.


In case you’re left with no income and assets, filing for bankruptcy could be the only debt relief option. Chapter 7 of the bankruptcy law eliminates your debt completely. However, you should have little to no disposable income in order to be eligible for chapter 7 bankruptcy. If you’ve some assets and income that can clear a small portion of your debt, chapter 13 bankruptcy would help out.

Chapter 13 of the bankruptcy law lets you reorganize your debt so that you pay off a small debt amount and become debt free. This option also lets you strip a lien from your real estate if the market price is less than the owed amount. While bankruptcy provides quick relief from debt, your credit will be hit. Aside from losing credit cards, it’ll be difficult for you to avail a loan or mortgage for the next 7 to 10 years.

Bottom line

Debt is a big burden that could feel paralyzing. Even though you may feel trapped with loans, there are debt relief options. By using an ideal option, you can do away with debt and bring your finances back to normalcy.