How To Stick To A Budget

If you've gone into bankruptcy or had other financial problems, it can be difficult to be driven into a loop of more and more debt by late fees and interest that keeps piling up. The only way to break the cycle is to micromanage your finances so that you can stretch out every cent. Here's how to create and stick to a budget.

Give Every Dollar a Job

You need to make a plan for every single dollar that you receive each month. It's not enough to just focus on cutting back spending in other areas.

If you make a goal to cut back on eating out, you might see that extra money in your account and spend it on clothes or nights out when you still need to pay down your other debts. If you plan every dollar in every budget category, you'll have clear limits on what you can spend as well as a reminder that some of your dollars are for paying off credit cards or savings.

Save Up For Big Bills

Many people get caught in the trap of receiving their annual property tax bill, six month car insurance bill, or other large, non-monthly bills and having to scramble to figure out how to pay them within a few weeks. This often leads to paying credit card interest or late fees on other bills.

For big bills, divide the total by the number of months the bill covers. Set aside that amount each month so that instead of scrambling to pay the bill at the last minute, you have it easily covered. Remember, you already have to pay this bill, so if you don't have enough money to set aside, you're spending money you don't have.

Plan For a Rainy Day

One of the most important things to plan for in your budget is the unexpected. You never know when you will get hit by suddenly needing a major car repair or catching a serious illness that sends you to the hospital.

If you plan to spend all of your money each month, you're planning for serious financial problems and possibly bankruptcy when one of life's hiccups strikes. It is critical that you set aside money into a savings account that you do not touch except in a real emergency.

To get help resolving money problems or planning good financial habits for the future, talk to a local financial planner today. You can also check out sites like for more information.

About Me

starting up a small business with a loan

I worked for a cleaning company for about six years before I got tired of making the owner all kinds of money while he paid me an eighth of what he charged to clean each home. I started looking into what it would cost to start my own cleaning business and found it to be a very affordable venture. After I knew exactly what I would need and the insurance costs associated with the business, I started researching the loan options. I compiled what I learned about borrowing money to start up a small business here on my blog to help others hoping to do the same thing.