ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Avoiding debt: How to maintain a budget

Updated on July 25, 2011

Avoiding debt: How to maintain a budget

Avoiding debt: How to maintain a budget

The first step to avoiding the problems of financial debt is to make and maintain a budget. It is not as scary as it sounds, so don’t worry.

First of all, create a long list of your monthly income and also a list of your expenses. When finding out your income, list all the sources including alimony, stock shares, child support, odd jobs, etc. In monitoring your expenses, be sure to note housing, food, transportation, utilities, entertainment, etc. To get a precise understanding of your actual expenses, sit down every night and write down your expenses. But make sure to save all your receipts. Find out if your income is more than all of your expenses. If your income is less than your expenses, then some expenses need to be removed.

Fix your expenses. If it is a small problem with your expenses, it may mean reducing some expenses like going out for dinner or the use of a cell phone. If the deficit is enormous, you may need to get a cheaper vehicle or change your living arrangements. If your monthly income can cover all of your monthly expenses, you still may want to get rid of some of the excessive spending habits. This can provide you with extra money for things such as vacations or a savings fund.

Furthermore, consider if you must add new categories. Some areas that you can often miss are debt reduction, emergency savings funds, and retirement savings. An emergency savings fund means there is a substantial amount available to cover unpredictable events if they arise such as a car accident or death in the family. This will prevent you from having to resort to using your credit card which can quickly hurt the budget you work very hard on to maintain.

There are several benefits to sticking to a budget. First, people usually have set financial goals that they would like to obtain in the future. It can be a trip, a brand new car, or a college education. A budget can make certain that you will save money to make these goals a reality. Additionally, people can be hurt under heavy consumer debt. Without a disciplined spending habits, it is almost impossible to reduce the debt that you have incurred. Making a personal budget will make certain that the necessary framework will be in place in order to begin eliminating these overgrown account balances.

If done properly, a budget will allow you to meet your goal expenses, place money into a savings account, and pay outstanding debts. Therefore, it is in your best interest to create and maintain a budget.


Comments

Submit a Comment

No comments yet.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)