Our CCCS Experts Explain Budgets

Confused about the complexity of budgets? Don't be. A budget is simply a way to sort expenses and income, explain the financial advisors at Consumer Credit Counseling Services (CCCS) agencies like ours. By analyzing your household's monthly expenses, and income, you can see where the dollars come in and where they are spent. Our CCCS experts say that planning household finances without a budget is like trying to drive to your vacation without having a destination.

The advisors at our Consumer Credit Counseling Services agency educate people about household finances, setting financial goals, and creating budgets that focus on reaching those goals. Nonprofit agencies like our Consumer Credit Counseling Service know that a well-planned budget will lead to successful financial management.

Budget Basics

• Start right now! Look through last month's bills and checking account statement and add up expenses and income. Make 12 columns to create a year's budget, factoring in seasonal spending (holiday gifts, summer travel).
• Check your budget each month to make sure you're still within the plan. Expense and income amounts will change, so adjust your budget categories as necessary.
• Our CCCS experts place expenses in two categories. Fixed expenses, which don't change each month, like a house or car payment. Variable expenses do, like heating bills, groceries or gas. Monitoring and adjusting the variable expenses is the key to sound financial management.

Common Budgeting Problems

• Relying on cash: Cash is difficult to track. Our CCCS advisors say to use checks and/or debit cards. Their paper trail shows where the money goes.
• Starting Out Too Strong: Trying to save money, beginning budget makers sometimes cut too many costs. A too-strict budget rarely works, our CCCS experts warn, because people simply give up. Go ahead and budget a reasonable amount for fun outings or hobbies that you enjoy.
• Spending the bonus: What about an unexpected bonus? It's tempting to spend, but it is smarter to put in savings or toward paying off existing debt. The extra cash boost will push you closer to your long-term goals.

Walking that line between income and spending can be a challenge. An impartial Consumer Credit Counseling Service (CCCS) like ours is an expert source of advice and information. Our CCCS advisors can help you set a realistic financial goal, and help set up a budget that works for the entire family. One of our CCCS credit counselors can help you put aside cash for savings every month, and work with you on a debt management plan if necessary. Get started on your budget today. It's your road map to a healthy financial future.