The ABCs of Managing Money
Execute a Plan of Action
A goal, without a plan, is just a dream. You should always map out how you plan to budget better, or how you plan to track your spending, or how you want to pay off your debt. If you don’t, you could get lost quite easily.
Figure Out All of Your Debt
If you are wanting to budget in order to get control of your debt and pay it off, you need to know how much you owe and to whom you owe it.
It’s time to take responsibility for yourself and your actions. If you are old enough to obtain debt, then you are old enough to pay it off. You can’t rely on anyone but yourself.
Have Back-Up Plans (Emergency Funds)
It’s important to save up enough money to have a cushion. You should determine what your goal is. For some it’s 3-6 months. For others, it’s at least a year’s worth. You need enough to take care of you in an emergency, as well as if you lost your job. If you do lose your job and don’t find one right away, you want to have enough money saved up to pay your bills at least for a time.