You bounced your last several checks, and have more NSF fees coming. Your credit card company isn't harassing you yet, but you know that the time will come when you caller ID will become the most valuable asset in your home. You just got paid today, but you're also broke today. It may be at times like this when you realize that it may not be such a bad idea to conjure up a budget. The following gives you some important tips that you can use to start your budget planning.
The average person that has dealt with credit cards will tell you to cut your credit cards right away. This is not the way to go. It may sound like unconventional wisdom, but you should make an effort to pay off your balances and keep the cards. Use the cards when you are unsure of the amounts in your checking account, but pay the credit card balance in full. This allows you to avoid NSF fees from banks. You can also use the credit card rewards programs to earn points towards gift cards for dining out and shopping. This is another saving tip that brings more money back into your budget.
The next step involves the discipline to place needs over wants. This is rather simple. Don't buy it if you don't need it. This includes the gourmet coffee, the overpriced shoes, and appealing but impractical sports car. This can be cycle that is hard to break, but determining your instant needs is the most important part of budgeting.
Another important thing is to know your earnings. Are you spending more than you earn? Reevaluate your needs if you are. Be honest. Downgrade if necessary. Make the effort to spend less than you earn.