Posts Tagged ‘debt management’

Personal Budget Planning

Monday, January 5th, 2009

Add budgeting to your personal finance repertoire.

The key to your financial success in life is your own personal money management skills. Your personal money management practices make up your own personal method of reaching both your goals and your dreams. No one likes the idea of personal budget planning, but you will never know if you are getting the most out of your money if you do not implement some techniques for personal budget planning into your life. Everyone wants to keep up on their bills, pay off loans and credit cards, and stay ahead of debt. Successful asset and debt management is an excellent source of pride as well as good credit.

Whether we use credit or not, all of us want to have a good credit score and credit report. So unless you have an unlimited amount of money that you can simply spend in any way that you wish, you are going to need to formulate some semblance of a personal budget in order to get your bills paid and in order to manage your assets as well. Personal budget planning can seem difficult, but should not be an overwhelming process by any means.

Creating a household budget begins by figuring out what all of your monthly and yearly bills are. Then you are going to want to add in any retirement funding, savings goals and spending money so that you have a clear cut picture of how much you need to spend, because what doesn’t matter is how much money you make – what does matter is how you spend the money that you make. By implementing personal budget planning techniques into your daily life, you can get a feel for how what you make relates to what you spend, and how cutting down expenditures in certain areas of your life can actually help you save a significant amount of money.

When you fail to follow personal budget planning, your debt may overcome your income, meaning that you would be unable to make payments on time. If you make payments late or make no payments at all, you will put yourself in serious mounting debt with no way out. You cannot simply spend money as you wish and hope that there is enough left over at the end of the month with which to tackle the bills. You absolutely must implement techniques for personal budget planning if you want to manage your finances right.
Personal budget planning is actually quite easy when you consider how many resources are out there for it. Most people use budgeting software on their computers to prepare a household budget. If you do not have any fancy software, another opportunity is simply to use excel to track money in and money out. When you have a clear cut picture of where your money is going, that is when you can truly begin to implement smart money saving strategies to get your finances on track.

Photo Credits: 1

Related Articles
  • 8 Tips for College Student Budgets

    #4 Pace Yourself

    Below are eight tips for college students about money and finances. 1. Track your Expenses If you track your spending for a few weeks, you will be better able to figure out where your money is going. Are you spending an exorbitant amount……
  • Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out……
  • 4 Tips for College Students Budgets

    Study and Save Money

    If you are a college student, then your primary focus is probably set on your studies and trying to maintain your education so that you will be benefited in the future. Unfortunately, one of the things that you may not be putting……
  • Tips for College Student Budgets

    College students going for financial success.

    Trying to make ends meet when you are in college is not an easy task. Your income is usually pretty limited and expenses can be high, even if you have a scholarship. If you’re trying to save money or just……
  • How Do Savings Bonds Work? Is My Money Safe if I Purchase Them?

    B is for Bond.

    These are questions most people ask when they consider buying savings bonds. Yes, your investment in savings bonds is one of the most safe investments you can make. You’re purchasing the bond and giving the government cash, which they pay you interest……
Related Sites
  • Weekend Roundup for June 16, 2020 I’ve been rather busy the past few days and posting has slowed down. I’m working to get some articles built back up so content is more consistent. Now, for a few quick links from the past week. PFBloggers.com: Our Fourpence Worth ponders if going to bed early is linked to……
  • Naturally Improve Your Credit Score With many consumers continuing to hamper their ability to save money by falling deeper and deeper into debt due to relying on credit and overextending themselves learning how to raise their credit score by 100 points is becoming more important. Nationwide the average credit score is rapidly dropping and most……
  • Roadmap To A Better Financial Health In the past few years, Americans average savings rate has declined precipitously — in fact the current savings rate is practically zero. This means that as a society, we are not saving any money. Worse, we have a habit of borrowing to fuel our consumption. We are spending more than……
  • A Recipe for Financial Disaster “Financial Disaster”INGREDIENTS ¼ cup Living above your means1 lb excessive debt1 tbsp Not following a budget2 cups Using credit cards1 tsp Not saving for emergencies1 cup Sugar (everyone loves sugar)1 lb Not planning for retirementDIRECTIONS1. Do not learn a basic personal finance education while in high school and do not……
  • Carnival of Personal Finance #157 has been published This week’s carnival is hosted at Consumerism Commentary and is the third anniversary edition.  A number of excellent articles from various personal finance bloggers were included. Here is a sample: Jennifer Derrick from Saving Advice presents  Quit Complaining About Fuel Prices and Do Something Silicon Valley Blogger from The Digerati……