Author’s Bio: RP is a regular writer for various finance related Communities including Debt Consolidation Care. She is a PG degree holder in Marketing and Finance and right now working in a reputed bank as a relationship manager. She is well equipped to write articles on debt consolidation, debt settlement, planning, investing, frugality etc.
How should a person make his budget for 2011?
You might be facing financial hardships because of increasing rise in price of daily commodities , and so it is very important for you to do some personal financial planning and budget, so that you can spend money wisely and save some dollars. To live successfully within your income and attain a secure financial future is very much important. For this, you need to do proper personal financial planning and budget.
Budgeting for 2011
The ways in which you can budget for the coming year are:
Jot down your total income and expenditure – It is always important for you to keep a track of your total income and expenditure. It helps you to follow a planned spending. You will know your affordability.
Lower the usage of credit cards – It is better to lower the usage of credit cards as the cost of living is increasing. If not possible, then you should better use prepaid credit cards. In that way you will be able to keep a track of your expenses and control it accordingly.
Watch your spending habits – Keep a watch on your spending habits as this wilol save you some more money.
Buy insurances – If you are already into a job and you have not yet bought insurances for yourself and your family, you should get one. There are various kinds of insurances according to your needs. Life and health insurance are two of the most important ones. It saves you money and hassles.
Use credit cards carefully – You should try to bring down the balance on your credit cards in full each month. If needed, you can transfer the balance from high interest cards to one with low interest rate. This will save you money.
Set your priorities – You should set the priorities in your life and on the expenses. Prioritize whether or not you need to save more, whether you need to buy a home or if you need to increase your income. You should also prioritize on which of the debts you need to pay off.
Make a list of your debts – Make a list of all your debts according to the interest rate. Try to pay those off as much as possible. Only then will you be able to lead a financially free life in 2011 and save some more money. Because, if you take more time towards paying off your debts, you are paying more toward the interest. Thus, you are losing more money.
Try to increase your income – Try to increase your income. You can join part time jobs, or give part of your house on rent or sell products made by you. This will help you increase your income. You will be able to use this money for paying down your debts.
Start an emergency fund – It is quite important for you to start an emergency fund and put money into it each month so that you can use the money in case of emergencies.
Go to a financial advisor – You can go to a financial advisor who can advice you on what steps to take in 201. Financial advisors are experienced persons and will direct you according to your needs and situation.
Use personal budgeting tools – You can also use personal budgeting tools available online. It helps you prepare your own budget.
Teach your children to budget – You should also teach your children the importance of budgeting and how they should actually start budgeting.
It is also important for you to review your budget every month. If needed, you can improvise on your budgeting.
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