The recession of 2007 has given rise to extreme inflation and consumers are facing hardship in buying everyday commodities. Unpaid credit bills are piling up and it has also driven many people on the verge of declaring themselves bankrupt. So, one should get proper finance help- budgeting money is the most key step in this regard. With proper help, budgeting money can make a person financially stable and minimize his chances of falling into a vicious cycle of debt. If one can follow a budget religiously, he will be able to keep his finances under control. In a recent interview, Michael Rupured, University of Georgia’s Consumer Economics Specialist, commented that too much spending during the festive season has compelled many people to go for budgeting.
When a person is preparing a budget, he has to take into account his income, expenses, and other financial obligations. One can go to a credit counselor, who will analyze his financial situation and render help- budgeting money involves following the steps mentioned below-
* Find out the total income: A person needs to calculate the total income by taking into account his net salary, bonus, dividends, interest income, gifts received, tax refunds, other forms of reimbursements, any other source of income like having a second job, and so on.
* Calculate monthly expenses: The second step is to calculate how much a person spends in a month by taking into account both fixed and variable costs like, mortgage interest, household expenses, entertainment expenses, health related costs (health insurance premiums, medicine, visit to doctor or dentist), deductible tax (real estate tax, personal property tax), charitable contributions, alimony, and so on.
* Save for emergency: One needs to set aside a fixed amount of money every month, to save for some emergency situation.
* Prioritizing and adjusting the expenses: One should prioritize the expenses that are vital and adjust the variable ones in such a way that he can contribute more to the emergency fund to secure his financial future.
* Review monthly: One should review the budget on a monthly basis, to make sure that he is staying on track. He also needs to verify whether or not the actual expenses are in accordance with that on the created budget. If not, he will have to find out the area where improvement is needed.
If you want to get professional help, budgeting money is one field where proper guidance can assist you in properly distributing your earnings toward various financial obligations. For doing this job, get help from eMonies.net and make your financial life secure.
