How to Make a Budget

Do you find yourself thinking at the end of each month, "I earn a decent salary, where does it all go?" A personalized budget can provide a clear picture of the money you earn and spend. It will also help you target effective ways to save money, and help secure your financial future.

Six Money Saving Steps

To make and maintain your individualized budget, Our Consumer Credit Counseling Services (CCCS) experts recommend these six simple steps:

• Record income. List everything you expect to earn in the coming year. This should include salary, raises and any tax refunds.
• Identify expenses. Don't minimize or exaggerate your monthly household costs. Make sure to include hobbies, dining out and salon services.
• Pay yourself first. Every budget should include monthly savings, no matter how small. Credit counseling specialists say that the habit is more important than the amount. Small savings grow quickly.
• Adjust As you go. Fitting expenses into your income usually requires some tweaking. If you need help fine-tuning those expenses, consider consulting with a nonprofit credit counseling agency. After a confidential consultation, your credit counselor will create an individualized and thorough budget to help you reach your long-term financial goals.
• Banish debt. If the bulk of your monthly income currently pays off debt, work on getting rid of that debt! A solid financial future depends on it. A credit counseling agency can talk with you about a debt management plan. The debt management plan will help consolidate your debts, and can structure more reasonable monthly payments, enabling you to pay down debt as quickly as possible.
• Track results. Check in regularly with your budget, at least monthly. When you see how quickly you are moving toward your long-term goals, you will realize how helpful a budget can be.

Debt Management Tips

A budget is essential for successful debt management, credit counselors say. Checking the numbers regularly helps keep you focused on paying off bills. It is rewarding to see debt drop each month, knowing that a realistic budget is helping you reach your financial goals.

The credit counselors at our Consumer Credit Counseling Services (CCCS) agency provide education about budgets and using them to create a strong financial future. After a credit counseling session, counselors make individualized budgets and debt management plans designed to create strong financial futures. Organize your finances today, and take steps to build a budget that will take you through to tomorrow's goals.