• Lower your monthly payments
  • Reduce stress and live your life
  • Avoid personal bankruptcy court

Some Tips on How to Create a Great Budget

Picture this, you have decided to set some sturdy financial goals; you have created a strict budget that allows for your rent and Mister Noodles. Then after a couple of days you come to the conclusion that you cannot live off of Mister Noodles alone; you start to miss things like meat and potatoes, the next thing you know you are sitting down to a steak dinner and ….wham…. your budget is broken. Sometimes people need to create a great budget in order to cover every aspect of their financial needs, no matter if they think they are doing all right with saving their money; there can be emergencies that pop up that they are not prepared for.

Create a Great Budget

Using Your Goals to Set a Budget

Many people do not know where to start when they want to create a great budget; it is very simple, start with your goals and continue from there. Some examples of goals that could be used to create a great budget are the following:

  • Pay off mortgage
  • Pay off car loan
  • Pay off credit card debt
  • Save for emergencies
  • Pay off student loan
  • Save for a vacation
  • Save for my children’s education

When you want to create a great budget, you must first budget in your needs; then you can distribute the rest of your income to your wants and goals.

A Realistic Budget

Many people tend to spend more than they can afford too, others tend to save more then they should. They usually realize this when they are standing in line and they cannot get what they want because their transaction was not approved, or the dreaded overdraft on their bank account…yikes! For some people this happens a few times before they realize that they need to create a great budget, or any budget for that matter. Even those people who have a healthy income have to realize they are not the richest people on earth and should not spend their money as if they are.

Having a ‘Budge’ in Your Budget

Creating a super strict budget is a huge mistake that is commonly made by people. The determination to get to your financial goals is there, but creating a budget that is tighter than a pair of spanks is not ideal; nor will it allow you to have some fun, and who does not like a little fun in their life!

We all have times in our lives that we look at something and think ‘oh…… I want that so much.’ This is where the budge in budget comes in; if you plan a splurge, or save for something you really want then it will avoid the overspending and destruction of your plan.

Know the Areas That Are Problems

You need to know where all your money goes, and for some people they can pick out where their problem areas are. Places such as a used clothing store, the large supermarket that has everything but the kitchen sink, or bulk discount stores, could be considered problem areas because people tend to overspend in these places. Sometimes it can be the small amounts spent here and there that are problem areas too. There are people who go from store to store for the sales, and while spending more money on gas to get there it is not ideal for their budget in the long run. In order to create a great budget you need to determine what expenses are really needed or not, too many problem areas can bust your budget wide open and ruin your goal you have set for yourself.

Thinking beyond the Month

For most people their budget is done from a monthly basis, but they also need to remember their annual payments in their budget as well. Yearly memberships and insurance premiums are payments that often get forgotten until they are due. For some the holidays are the budget busters because they are not a part of the budget or saved for. In order to create a great budget you need to factor in all of these expenses as well as any other expense that is not monthly.

In The End

Budgeting is a constant learning experience, on one hand you do not want to be strict, but on the other hand you do not want to be spending all ‘willy-nilly’ either. You should always make sure that you have an emergency fund set up because just like the term ‘emergency’ suggests there are always unexpected things that pop up; like the tow you needed because your tire broke in the middle of nowhere. We all make mistakes that we have to learn from, financial mistakes are no exception, it is ok to get frustrated with your mistakes, just hang in there, and do give up you will make it work.

Great tips for a Debt-Free Lifestyle!

Although some people believe that their debt issues will get better on their own, they will not. Taking care of your financial life is each person’s responsibility and if you are having any kind of financial issue you are the only one who will be able to get a grip and solve it. Of course getting professional help is an option, however the change should begin on how you deal with money and how others do it. Your financial life depends on you, so why don’t you give it some great attention?

Debt-Free Lifestyle

How to actually get rid of debt?

Some people might find a Debt-Free Lifestyle hard to achieve, however it is not! The first step on the whole process is to pay attention to a few tips that will be extremely useful for you!

Save as much money as possible, if needed get a second job

Leading a debt-free lifestyle might be hard, especially if you already have debts to get rid of. In case that is what is happening to you, make sure you pay the debts as soon as you possibly can because this is the only way for you to achieve your goal. If you do not have enough money to pay the debts every month consider getting a second job and also save as much money as possible on a daily basis. Cut as many unnecessary expenses and have your goal in mind 24 hours a day and 7 days a week.

Try to make money out of things you no longer need

Creating an account on Kijiji, eBay or even Amazon does not mean you will be up to spending money, in fact it is a wonderful way to do the other way around: earn cash! Every person has some stuff home that they no longer need, why not make some good cash out of it? Cash that can be put towards your debts and that can help you exactly the way you need?

If you have multiple debts…

In order to achieve your debt-free lifestyle goal as soon as possible you should get rid of your debts as soon as possible, we all know that, but what if you are dealing with multiple debts at the same time? What is best to do? Well, in this case the best option is to get a single loan and pay all debts off, that way you will only have to pay a single debt off and will be able to deal with better interest rates (and only one).

Work online, remotely

If you need extra money and you do not have enough time to work a third shift you should consider doing some freelance jobs online. It is always a great way to get some extra cash! You can also work in different jobs such as babysitting, taking care of dogs while your neighbor’s travel or even getting rid of your neighbor’s snow during winter. There is always a great way to make extra cash, it all depends on you!

Settle your debts whenever possible

If a debt-free lifestyle seems to be far away from you then what you need to do is try to settle your debts. There are several different bank companies and also stores that wish to receive the money in the best way (and fastest way) possible. Because of that they allow people that owe them to negotiate the debt and make payments with reduced interest to get rid of the debt faster.

Talk to a debt counselor

Several countries offer these services for free. In case you cannot figure out what your best options are, make sure you contact these professionals to help you out. There is no problem asking! In fact there are several professionals of this field that will be able to guide you through the whole process and will give you very useful tips on how you can keep up paying your debts.

What not to do when trying to lead a completely Debt-Free Lifestyle?

There are some slips when it comes to trying to save some money and getting rid of debts. There is thin line between actually doing it and getting deeper and deeper into the debt hole. For example, there are some people that get a loan to pay all of the debts off and end up spending part of the loan in other things such as paying current bills or even getting a TV of anything else. This is a very common mistake that should be avoided.

It is also important to try to get rid of the loans as soon as possible, after all a new loan will also charge interest (even if in smaller amounts). The faster you work towards your goal the faster you will be able to lead a much happier life rid of debts.

Tips for Getting Out of Debt

tips for getting out of debt

Do you remember when your parents bought you your very first bike? Remember that excitement you felt to show off the new Huffy to the neighbors? Inevitably with the first bike came the first fall, complete with knee scrapes and a bruised backside. But no, that never stopped you, or anyone for that matter! You hopped right back onto that bike and began to ride again, learning new tricks! You became such a good rider that falling was a distant memory!

And while getting back up and dusting yourself off may seem insurmountable, getting out of debt isn’t all that much different. Yes, the stakes are much higher, but the desired outcome is actually quite the same, start over and try again, learning new tricks along the way. Read on to learn the top 10 tips for getting out of debt to kiss that debt goodbye!


Budget Budget Budget!

First and foremost, start a monthly budget! Budgets help you:

  • Determine your true monthly income;
  • Compare this to your true monthly debt;
  • Map out a plan; and
  • Pay down existing debt.

This process is imperative to starting the process of getting out and staying out of debt. It is difficult to develop a plan without knowing what you have to start with and where you need to go.

Paying Down the Debt

Once a budget is in place, you can start to knock down your bills. The best suggestion to get out of debt is:

  • Start with accounts with higher interest rates, allowing you to start paying the actual balance faster and ridding yourself of the debt.
  • Pay down the balances to approximately 30% of the available balances.
  • Cut the cards!  Any cards less than a year old with a high interest rate should be paid off and tossed.  The young age of the account will do minimal, if any, damage to your credit if it is deleted.  Only keep cards that are used and needed.

Credit cards can ruin any true plan to get out of debt.  By ignoring the high interest credit cards, you are allowing the credit card companies to take your hard earned money away from you and line their own pockets with it.  The faster these cards are paid down and destroyed, if possible, the closer you are to living a debt free life!  Furthermore, creditors determine whether you are a good risk based on t he percentage of debt to available balances you maintain.  30% is typically the cutoff point before you are considered to be a higher credit risk for the good credit, such as cars and homes.

Cash Only, Please

Stop using the credit cards to pay for life!  Getting out of debt is easier if you don’t rack it up in the process.  It is important to keep three credit cards open to raise your credit, but only charge on them small items that can be quickly paid off, like groceries, not the large 60″ LED TV!

And since, you are living on cash, you must remember, No more shopping sprees. Based on the new budget, you learned what your true flexible spending is.  Don’t overdo it, and then need to run up the credit cards again.  Spend within your spending limits! By cutting extra expenses, like that daily Venti Double Latte from Starbucks, you may find you actually have more money than you thought.

In keeping with finding new room in your budget, don’t go backwards by taking out a loan, such as a debt consolidation loan, to help get out of debt.  That is simply trading one debt for another.  And worse yet, it actually lowers your credit score!

Saving and Earning More Money

Staying out of debt is much easier than getting out of debt:

  • Look for bargains and deals;
  • Use coupons whenever available;
  • Search the web for coupons and deals
  • Negotiate when making a big purchase
  • Use barcode apps when shopping for high priced items; or
  • Invest in a coupon book.

You may also want to earn extra money by:

Sometimes, the additional income earned by bargain hunting and an extra job can allow not only for getting out of debt, but for building the all-important savings! Once savings are restored, it is easier to avoid future debt pitfalls.

And When All Else Fails…Call for help!

When all else fails, remember there are professional non-profit agencies that specialize in helping people get out of debt. These companies are adept at negotiating with creditors and achieving more manageable balances with lower interest rates. While these arrangements may affect your credit for the three to five years you are in the program, when you have finished paying the debt down, you emerge with a clean slate and sparkling credit!