Establish a Budget
Having an earning and spending plan or budget can provide for your continued financial success. Here are some tips to help guide the formation of a good budget.
- Set your goals. Goals can help you stay focused by keeping your focus on what is really important.
- Determine your income based on the amount you receive after taxes.
- Determine your expenses. Make sure to include all credit card bills, fixed monthly payments like rent, and variable expenses like food and clothing.
- Create a spending plan to meet all of your needs and some of your wants. Remember that your total income needs to be greater than your total expenses.
- Adjust your spending methods if you find that your expenses are higher than your income.
- Contribute to your future finances by starting an emergency savings fund.
- Be careful with credit cards. The interest rates can kill your financial health. Always try to make more than the minimum monthly payment.
- Keep track of your expenses.
- Periodically evaluate your spending plan to make sure that you are still meeting your needs and goals.
Managing Your Debt
In addition to a healthy budget, you should always have a clear plan for managing your debt. If you can get a handle on your debt, you will be able to control your financial situation. Here are some tips to help you manage your debt.
- Be aware of your responsibilities. When you take out a loan or buy with a credit card, you are promising to pay that money back.
- Keep in contact with your lender(s). This relationship will prove invaluable if you are having problems making payments.
- Look at all of your other options, like scholarships, grants, and work-study, before you take out student loans.
- Set a limit for how much you borrow. Only borrow the amount that will cover your most important needs.
- Stick to your budget.
- Shop around for the best credit card and loan, and read everything in the contract before you sign.
- Try to minimize your expenses by keeping track of your wants and needs.
- Choose a bank or credit union that best fits your needs. Look into monthly fees or ATM charges. Make sure your savings account has a high interest rate. Little fees do add up!
Helpful Links
"Life After Debt" Workbook (PDF)
www.getcollegefunds.org/doc/DebtbroFinal.pdf
Budget Worksheet
www.amsa.com/tools/budget/default.asp
Establishing a Budget
www.mapping-your-future.org/features/dmbudget.htm
Budget Calculator
www.mapping-your-future.org/features/budgetcalc.htm
Step-By-Step Guide to Managing Your Debt
moneycentral.msn.com/articles/smartbuy/debt/contents.asp
Student Loan Counseling Services
www.slcsloanhelp.com/managing_your_student_loan_debt.htm
Get Started: Setting Goals and a Plan
www.sorted.org.nz/setyourgoals_index.php |
