Steps to Creating a Household Budget

Creating a budget isn’t a skill most people are born with. It has to be learned, practiced, and practiced over and over again before it’s perfected.


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When it comes to debt reduction, we at Superior Debt Services provide our clients with tips and tricks about how to budget and save when possible. Towards that objective the following are some steps that you can start taking to create a budget that works for you and your family.

  1. Start with the 50/20/30 guideline. That’s 50% for fixed expenses such as housing, car payments, and insurance. The next 20% is for your goals, such as retirement accounts, college savings and investments. The final 30% is discretionary spending, such as clothing, travel, and non-essential expenses.
  2. Pare down your expenses. Compile all of your expenses for a month to see where you’re spending money. And, if you’re like most people, you’ll be surprised how quickly those Mocha Latte’s and trips to your favorite restaurant add up. Take a good look at all of your bills, then determine areas you can cut back.
  3. Keep on track. As you get started, it’s important to remain diligent. Budgeting is a habit that the more you do the more you’ll come to rely on. When you start out, set a day each week to track your income/expenses. As you get more comfortable, make it once every two weeks, then eventually you can work your way up to once a month.
  4. Look to the future. It’s easy to look back and say “Geez, I wish I would have…” That will do you no good and it can easily sap your morale to keep moving forward. Instead, look to the future. This will help you see your dreams clearly again and give you the confidence to keep working towards your financial goals.
  5. Stay flexible. No budget lasts forever. Be prepared to adjust and change things as needed, and as your finances change. If you stick to the 50/20/30 guideline, you’ll have the ability to do this throughout your lifetime.

Do you need more assistance creating a sustainable budget for your household? If so, contact Superior Debt Relief Services for more information about our debt reduction services.

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