subject: Debt Management Tips – 5 Tips To Budget And Manage Your Debts [print this page] Debt Management Tips 5 Tips To Budget And Manage Your Debts
You may already be swimming in debt; and the deeper you are in it, the more you need to plan your expenses so that you will have the chance to erase this debt at some time. You may have been contemplating getting help to do this, so read on and see if the information below helps you.
Write down all your sources of income. Do this under a monthly category. Take note of all the money you earn; such as cash gifts, bonuses, dividends, tax refunds, and others.
Write down your expenses, separating them into 3 categories; such as fixed, flexible, and discretionary. The fixed expense means that you need to pay it off monthly such as a house mortgage or rent. Flexible expenses are those that you need but can control how much money you use for them. Discretionary expenses are those that are not your necessities. These are the things that you can live without; so you can cut them out of your expenses list.
Get the total amount of your expenses and subtract them from your total monthly income.
Divide the total amount of expenses by the amount of income or pay checks that you get per month. Through this, you will see the exact amount you can set aside per pay check. If you see that your total expenses are greater than your income then you are definitely off track.
Set your priorities. Set aside some savings to pay for your fixed and flexible expenses.
Once you have this spending plan set, review it until you come up with a plan that will lead to erasing your debts.Make it a prerogative to erase debt. Plan your budget and learn to manage your finances well so that you can live with some sanity.
