How A Budget Can Help Increase Your Income
The fact is, however, that having a budget has a number of advantages. Whether you take the time to do it yourself, or work with someone else who can help you accomplish the task, it's well worth the time it takes.
A budget should include projected income and expenses for each month as well as a buffer for unexpected expenses that may pop up. There are many ways of keeping track of your finances. You can use software like Quicken or Microsoft Money, both of which have extensive budgeting capabilities, or you can use a spreadsheet like MS Excel. A spreadsheet will take a little more work because it isn't already set up for you, but it gives you more freedom to lay things out the way you like.
If you don't own any spreadsheet software, it doesn't have to cost anything. Both Open Office (www.openoffice.org) and Google Spreadsheets (docs.google.com) are free to use.
Or if you prefer a more low-tech method, a legal pad is really all you need to lay out your budget.
Divide your spreadsheet or paper into two columns - all types of income in one and all expenses in the other. The income column would include your salary as well as any other forms of income you get on a monthly basis. The expenses would include fixed expenses like a mortgage or car payment, as well as other things such as groceries, entertainment, gasoline, etc.
If possible, add a 10% "buffer" in the expenses column for unexpected bills. If you don't use it, you can use it as savings or to pay down credit card balances, but if you don't budget for it and need it, it can throw your budget out.
Now, here is where you can potentially increase your income through a budget. Make another "projected" budget - this one is for looking at alternatives.
For example, add up the interest that you pay on credit cards every month, the interest you pay on auto loans and 25% of non-essential expenses such as restaurant meals or other entertainment.
Total those three items - this is one area that you could potentially save money every month (thereby "increasing" your income - you'll have more in your pocket at the end of the month). By consolidating this debt into a single loan and spending less on "impulse" items, you may be able to save a considerable amount every month.
By trying different scenarios in your projected budget, you will quite likely find some things that you spend money on that are either unnecessary or could cost you less by choosing cheaper alternatives.
Related Tags: debt consolidation, income, personal finance, budget, debt reduction
William Blake offers more advice about negotiating credit card debt yourself on the Debtopedia website. For more helpful information, visit http://www.debtopedia.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Personal Finance & The Needed Momentum
Possession of personal cash flow plan and the dream of having financial freedom might make it harder - Need An Ebt Card Or Food Stamps?
Applying for food stamps can be a very overwhelming and embarrassing task. Knowing what to expect th - Quick Money Loans What You Should Know
If you are looking for a quick money loan there are a few sources available, and just like any other - Same Day Cash Loans - Quick Help When Fiscal Requirements Force You
Life of human being is completely dependent on cash that establishes the life of one comfortable or - Unemployed Loans - Don't Accept Debacle Against Fiscal Requirements
In today's time, what imperative complication is increasing at the rapid pace for people? It is the - Get A Secured Credit Card To Rebuild Your Credit
The recession has spoiled the financial plans of many. Some have maxed their credit cards out, other - Ways To Create Profitable Cfd Trading Strategies
Understanding the connection between 2 significant ratios is the key to having winning CFD trading s - Can I Save Money At An Outlet Store?
Everyone loves to know they are getting a good deal when they are shopping for something. It could b - Used Car Donation Program Worth The Cause?
Used car donation program may not be the best option for many. Before you call me selfish and Paroch - Who Controls A Business's Asset When It Files For Bankruptcy?
Individuals who wake up and find themselves knee deep in debt, with no recourse to repay the debt, h
Most viewed articles in this category:
- Proposed Changes to Bankruptcy Law in Scotland
A bill has been proposed in Holyrood, the Scottish Parliament, which would align Scotland’s ba - How To Create Your Own Emergency Fund
Do unexpected car repairs, quarterly insurance payments or unexpected medical bills find you hard pr - How To Make A Personal Budget
There are many types of budgets that people use in their daily life. For instance, there are budget - Easy Cash Loans To Meet Immediate Cash Need In The Most Convenient Way
A financial crunch can happen to anyone at anytime in life. A few years back, I was stuck in the sam - Credit Counselors Offer Advice to Avoid Debt This Christmas
The holiday season is a great time of year for most of us, but it's also a time of year when we want - Save More/Spend Less - Become a Saver not a Spender
Our personality and lifestyles affects our ability to save. Most every action we take (including tho - Saving Money In College
Have you ever found yourself eating Cheerios for dinner while sitting in your dorm thinking about ho - Seek Unsecured Loans And Avoid The Threat Of Repossession
It is quite natural that people don't want to have the threat of repossession of their property whil - Investing - Tax Shelters Equals Big Fine For KPMG
What happens when a world renowned accounting firm decides to market tax shelters to its elite clien - Teaching Kids to Save--It's More Than Just Numbers
Did you know?<b>• The fastest growing group of bankruptcy filers is those 25 and you