Gardner Tromp / 2021-10-03 08:09:59 / 0 Comments

Simple Financial Budgeting Tips to Avoid Debt

Financial budgeting is an excellent way to remove debt and increase the likelihood of saving more money. If you feel like you're not doing enough to stay on top of your finances, installing a budget should be your first step.

Here's the deal: It’s easy and will not take up much of your time!

The thing is, you can find ways to better manage your financial situation by learning how to budget. It is a practice that individuals experiencing debt or having trouble managing their income should learn and regularly apply in their daily activities. This will show where your money is going and with that knowledge, it will give you the opportunity to focus on fixing any leaky or expensive areas of your spending.


Credit card debt has really become more common nowadays. This is true especially among American households that have at least one credit card. In fact, there are families that even believe that it is a necessity while others are not so sure about it.

As your income increases, the amount of responsibility you have financially may increase as well. That may be true in some cases because many people are so heavily invested in all different types of loans, retirement funds, etc. that they don’t know how to move forward to get out of their current situation especially if their previous path didn't work out. As a result, they have accrued ever-growing debts, which consume a huge chunk of their pay.

There's a way to fix this situation and it relies on how you practice financial budgeting. One good way to start is to make a note of how much debt you owe and assess whether or not your limit has been reached. Do you find that your non-housing debt is already eating up more than 20% of your take-home pay and over 30% of it is allotted for the rent or mortgage? Things like these will help you get your finances in order and avoid any future financial hardship.

As James Lendall Basford said:

The man who never has money enough to pay his debts has too much of something else.

If you're fed up with debt and want to do whatever it takes to get rid of it, then these steps will help you create a successful budget. The debt trap can be difficult to escape from. In order to figure out the steps that will work best for you, it is important to review your spending habits and develop a strategy.

The first step in developing a sound financial budget is figuring out how much money you spend, so that you can identify your debt load. This will allow you to make some headway with paying off your debt, which ties up cash.

Increasing Your Credit

Keep track of all your expenses for 30 days and make sure to write down every penny spent. Try to calculate how much you spend with cash and keep your ATM slips. Keep all credit card slips in order to add these fixed monthly expenses to the total. Include your monthly food, water, housing, phone and cable bills for a more accurate record of your expenses.

Add up the 'extra' spending one might do which includes restaurants, clothing, entertainment etc. and try to examine what you can do to reduce these costings. For example, when going to a restaurant instead of picking a more expensive dish from the menu maybe eat there only once every other week or cancel that plan for your wardrobe upgrade.

Here's what you need to know: Expecting this to happen overnight is unrealistic. Cutting off phone bills will make an impact over time, but there are other things you can do to speed it up like the following:

  • Take your own lunch to work instead of eating out. You'll save money, save the environment, and have back-up meals in case you're stuck at work!
  • Get a thermos so you can use the time you spend commuting to drink your favorite beverage.
  • If you're not comfortable with changing the air conditioning temperature, there are small things like turning off or unplugging equipment that can reduce costs.
  • Consider online banking to save costs and time. Everything can be done online now so why go all the hassles of traditional banking when you can easily do them on your phone?

Then, tackle existing debt by prioritizing repayments to your highest interest credit card balances.

These tips can help in creating an effective financial budget. It will help you manage your debt, make monetary goals more manageable, and create a roadmap for your future finances.