Budgeting Ideas

This week's theme is "organizing your finances", and there really is no better way to do this than creating a budget.

Here are a few quick ideas about budgeting your finances:

• create a budget based on one month's income   I feel this is the best approach as most bills are due on a monthly basis.
• write down financial obligations, beginning with the most important ones  House/rent payment, food, power and water are some of the basics.  After these, list other bills.  Lastly, create an optional or "fun" list.  Writing these expenditures down will help you visualize where your money is being spent.
• when possible, have important bills taken directly from your bank account  This ensures they are paid on time, helping to avoid costly late fees.
• avoid overuse of credit cards  Credit cards can be useful in some situations, but be careful - the amounts can quickly add up!  Regular payments and frugal use will help you avoid some of the financial traps many consumers fall into.
• put money away for a rainy day  My husband has a small amount of every paycheck directly deposited into a savings account.  This extra bit has helped us out with unforeseen emergencies.  It doesn't have to be a lot - even a little builds over time and can provide real dividends during difficult times.

I'm sure many of you are already doing these things; if not, I've hopefully provided some insight and direction about how to begin your budget.  It really doesn't take a lot of time - and it sure is worth the effort!