Budgeting is essential if you want to learn to live below your means. For many people, budgets seem too restrictive. If you try too hard to save, you could end up spending rebelliously or throwing the budget out the window. With Christian credit counseling, you access tools and education to finally get a handle on your budget. According to a piece by time.com, there are five reasons behind a budget that isn’t working. Christian credit counseling will give you the support and knowledge to solve your budget woes.
Start paying better attention
The first reason a budget fails is because people tend to ignore a budget. One easy way to become more conscious of your spending patterns is to keep a spending diary. You can use your cellular phone or old-fashioned pen and notebook. Having a budget isn’t the same as following a budget.
Take a realistic approach
With Christian credit counseling, the goal is to come up with a realistic budget. Of course, it would be great if you could max out your 401(k) at work and save up $30,000 for a down payment on a home. After you pay off your credit card debt, lofty financial goals become more attainable. By consolidating debt and signing up for a debt management plan, you take a realistic step toward improving your personal finances and being able to live within your means.
Put money aside for taxes
Another pitfall to avoid when budgeting is failing to put money aside for income taxes. Check your paycheck to make sure you have the right number of exemptions. People with several dependents often put down a higher number of exemptions so their employer takes less money out of the paycheck. If you feel concerned you could end up owing taxes, reconsider your exemptions number. Put money in a regular savings account to cover a tax bill if necessary.
Get your budget and goals in alignment
If your budget doesn’t reflect your goals, you are less likely to follow it. A trained credit counselor with integrity and Christian values can help you figure out your priorities. Many people value paying what they owe. Debt consolidation with a debt management plan is one way to follow through on your obligation while also getting the benefit of a lower interest rate.
Leave some wiggle room
Another way to guarantee success with a budget is to leave some wiggle room for discretionary spending. While there are a lot of different formulas for saving and spending, figure out what works best for you. Start by saving 10 percent aside for the future. After allocating money for all of your bills, figure out how much money you have left. If you can’t make it work with your current budget, consider consolidating debt.
At Christian Credit Counselors, our trained credit counselors don’t judge you for your spending or savings habits. We get our clients motivated to succeed in the future with a solid budget and debt consolidation help.
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