Managing your money may seem a daunting task, but sorting out your finances is crucial for any successful debt solution. And, remember the reason we try to plan and live on a budget is to create money that is not spent, but saved!
A good Budget ToolÂ provides a simple monthly budgeting process to helpÂ you establish key facts about your financial situation quickly. It looks at:
- Your monthly combined income - such as salary and any benefits you receive
Against your regular outgoings such as:
- Your debts -Â like bills, household costs and entertainment.
If youâre left with a negative figure â in other words your monthly outgoings are regularly higher than your monthly income â then you should think carefully about whether there are some monthly costs that you can reduce or remove altogether.
Cutting back on luxuries such as your daily coffee is well worth giving a go - and soon adds up over a month! - if it means you can settle your current debts more quickly.
To tune your finances, use a BudgetÂ Calculator to create a plan thatâs right for your situation. It could helpÂ you decide whether you can afford to take out a short-termÂ loan!
Remember, it's important to prioritise when planning a budget. This varies from person to person, but as a general guide:
- Pay your bills first â cover your most important expenses each month,
- Cover your day-to-day needs such as groceries and transportation,
- Cover those occasional costs that come up quarterly or yearly,
- Save some money for emergencies,
- The next step is to set aside some money for future goals: SAVINGS.
The truth is, most of us will overspend at some point or other in our lives and will get into debt. Sometimes it is only a little debt and we can get our finances back on track pretty quickly just by cutting back on a few luxury items. However, that is not always the case. Sometimes debts build up to a point where you can no longer keep up the repayments and the stress of the situation is overwhelming.
If you have rising debt problems, this is the time to be honest with yourself and seek debt management help. Debts compound rapidly over time so the sooner you sort your spending, reduce your outgoings and deal with problem debt the better. To help manage your debt you could visit:
If you are concerned that you are falling into a bad debt situation, then please do not apply for a Save My BaconÂ Short-term Loan as our loan will only exacerbate your situation.