Budgeting Ideas to Help You Handle Debt and Save More


Budgeting Ideas to Save Money

Do you have a garden Or some small plants? No, Then try imagining for a minute that you do.

You get a plant, so it in the soil and water it. Every morning, you check up on it and water it nicely. You make sure that it gets enough sunlight and air to grow. For the first few weeks, you behave in a very responsible way with it. But after some time, you start taking its health for granted. You assume that it does not need water every day and skip checking up on it. At times you even forget about it. As a result, the plant starts dying and eventually stops blooming. All the hard work that you did, in the beginning, goes to waste.

The same thing happens with your hard-earned money if you don’t have good Budgeting Ideas. You get your salary after putting in month-long efforts at your workplace. And it does not take you more than a few days to exhaust the whole amount. You borrow Payday Loans No Credit Check to keep up, your credit card bill keeps rising and you barely make space to pay your installment. You keep wondering where all your money is going and still stay confused.

Such a struggle can be avoided by being smart about your finances. The three monetary factors you should always consider are:

  1. Budget
  2. Savings
  3. Debt

Not caring about even one of them causes the other two to tumble. It is very important to pay proper attention to each one to have a stable financial life. Your savings deplete when your budget is amiss and your debt increases when you have zero savings. It is a cycle in which every factor has to be kept in place.

How to Plan your Budget?

The answer is simple. Just follow the 50/30/20 rule of budgeting rule

  • Calculate your after-tax income of the month.
  • Then allow 50% of it to your basic monthly expenses.
  • The next 30% is for wants and surprise bills of the month.
  • And the last 20% is your savings.
  • The 50%Basic monthly expenses include the regular bills that come in every month. These usually include paying for electricity, housing, transport, credit card, debit installments, television and the internet. You know that these cannot be avoided and must be paid for in time.

    When you calculate what half your income amounts to, carefully study the cost of your utilities. If they go beyond 50% of your income, see where you can cut down. Make it a point to squeeze your necessities within half of what you earn.

  • The 30%It is understandable that you earn to fulfill your wishes. There is always a new dress or a new watch in the market that you have your heart on. And what is really the point of earning when you cannot buy what you desire? Keep aside 30% of your salary for such spending. Let money buy your happiness. Buy gifts for yourself and those around you, go partying, travel and shop. You deserve it after having worked hard throughout the month.
  • The 20%These are your savings. You need a support system to fall back on during emergencies. You would not want to ask someone else for money since you are earning independently. Therefore, do not compromise on this 20% amount. Be strict about keeping it aside. Open a term deposit or invest somewhere. You will regret being lenient about this.

The Rule of Budgeting

This basic rule allows you to be organised about your income. If you follow this, you can easily make space for your utility bills and debt payments both. You also get a sufficient bracket of savings as well. The rule is not hardcore and you are free to change it according to your needs. Unpaid arrears decrease your credit score and keep adding interest. If you have huge debts, you can decrease the 30% slot and focus on getting rid of them.

Yes, it would take you some time to come in terms of your budget. Your first budget will need modifications and you will realise them on your own. But this requires your dedication and patience to get applied in your life. You would need a lot of self-control to stay within a budget and stop yourself from going shopping whenever you liked.

How to Save Money?

Saving money is not rocket science. It is easiest when you stop spending unnecessarily. Keep a track of your entire budget and you will get to know where you are being extravagant.

Unless you realise the areas you in which you overspend, you would not be able to save money. The best way to increase your savings is to invest in something where a fixed amount would be deducted from your bank account each month. If money does not remain in your account, you would not be able to use it.

You cannot spend what you do not have, right? Let the money go directly into your savings pool where you cannot touch it.

Here are Some Budgeting Ideas

  • When you go out, stick to a To-Do shopping list. Do NOT buy anything out of the list.
  • Give up on brands. Even non-branded items last long and are cheaper too.
  • Switch to having parties at home, rather than going out.
  • Find cheaper insurance and save on the cost of your premium.
  • Opt for the cheapest loans. Direct lenders offer a variety of options for you to choose from.
  • Clean up your cupboards and wardrobes, and sell what you do not need.
  • Avoid pickups and home delivery for your food. Prefer to eat at home instead.
  • Save electricity. Even a little change counts.
  • Stop considering your spending options and lock away your credit card.
  • Consider changing your internet plan. See how much you use each month and buy a smaller plan.

Even if you save £10 in each area, you will end up with £100 more at the end. Each small change counts and can give you a big result. You need to take baby steps and stay more careful with your lifestyle.

How to Handle Debt

It is not uncommon in the UK to be under debt. The cost of living does not really let you stay within your income. Almost every household has at least one debt in their name. Managing it does not come easy either. It gets worse when there are a couple of unpaid dues that need to be repaid.

And it is not just about the debt. Your credit rating is affected each time you delay an installment. Each loan, borrowing, and debt of yours is reflected in your credit report. If you are unable to afford your repayments, your score starts decreasing.

This causes a big problem for you in the future since lenders do not really prefer giving money to people with bad credit. Even if you apply for unsecured loans with bad credit, you would have to pay a higher rate of interest. This makes it even more important that you stay responsible for your debt.

There are some sensible and smart ways to go about handling your debt.

  • Forget saving or spending on your wishes and focus only on clearing your dues till you clear all your dues.
  • Start from the debt that incurs the highest interest every month and put all your spare money into paying it off. Once that is paid, move to the loan with the second-highest interest and go down the ladder one by one.
  • Or, start repaying from the loan with the biggest principal and then move on to the next biggest.
  • Taking a debt consolidation loan is also a wise decision. Doing this reduces your liability to repaying just one loan. The multiple interests that you were paying suddenly turns into just one.
  • Take up another job. Work part-time or as a freelancer. Use this amount to actively and quickly payback what you owe.

Budget, Savings and Debt

You work to earn money. That money is used to pay for living costs and rising the life standard. Since you cannot afford a car or a home, you take a loan for them. And your job then pays the installments of that loan.

The cycle of earning and spending is never-ending. But it can become troublesome if you are not responsible for handling money. It is very easy to get stuck in a debt trap or a credit loop, but even more difficult to get out of them. There is an ample number of things to lure you into buying them. Unless you are aware of your affordability, you are likely to fall for them.

It takes perseverance, self-control, and dedication to stay away from the extravaganza of this world. It is not hard to do this if you know your boundaries. Spend what you earn, and owe what you can easily repay.


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