What are your financial goals? Are you looking to get away from needing a cash advance? Would you like to be credit card debt free? How would you use a budget to help achieve these goals? Before you can even start working on these goals, take a good look at where your finances are now and begin to think about what sacrifices can be made in the process.
*Focus on one or two objectives at a time. Unless you have lots of money to be spread out across many areas, keep it simple. When you do identify financial goals, take a few moments and prioritize them. When you concentrate your efforts into selecting goals at the top, you will have a better chance of achieving success.
*Don't assume the easy goals should be at the top of the list. You can't prioritize based on convenience. Don't let the undesired goals sit at the bottom. Getting rid of those may make the biggest difference. Look at all your debt and compare outstanding balances and interest rate.
*Be ready for problems. If all your goals are met without a glitch, then awesome for you! Most people do experience financial conflicts, especially when it comes to money and bills.
*Give yourself some time. We all would love debt to disappear tomorrow. Set realistic time goals to each of the objectives. If one of your goals is to save for retirement, start that one first. The longer you spend putting money away, the more you will have at the end.
*Reevaluate the list as you go. Don't let your focus blind you from seeing trouble brewing with other objectives. Did you use a cash advance and not plan the payoff properly? Did you max out a credit card and then have the interest go up? You need to keep track of every bill each month in order to efficiently monitor your finances.
*If you have a family, make them accountable for money as well. Your spouse should be in on the plan and the children should be given their own goals. Simplify the children's roles but make them meaningful. They could help keep the electric bill low by working at shutting off lights when they leave the room. Make each goal age appropriate.
*Just because you are making a dent in your debt, don't start thinking you can afford large purchases. Keep yourself on task and don't add to your debt unnecessarily.
*Don't think small purchases won't hurt. Remember, all those little things you feel you can now afford will build debt back up sooner than you realize. We all deserve a treat, so budget a certain amount to spend and stick to the plan.
*Be prepared for emergencies or a quick change. You can't control some factors in life. Loss of a job, relocation or medical problems will greatly impact finances. If you can build a savings account which holds at least six months of expenses, it would be the most ideal way to help keep your progress safe and secure.
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