Budgeting - 5 Tips to Avoid Debt

No Debt - No Problem 

1. Make a budget, this is the most important thing you can do. Having a budget will help keep track of your spending which in turn will help you stay debt free. When making a budget, it should include how much money you have coming in, and how much you have to spend each month on bills and essentials. Whatever is left on your budget sheet when you take the outgoings from the incomings is your budget for the month. Every time you spend something, no matter how small put it on your budget sheet and work out how much you have left. Small items add up quickly, just a few extra bars of chocolate or some non essential items in town can end up making you spend money you don’t need to be spending, and that you often forget you have spent.
2. When buying an item in town, don’t buy it straight away, go around to different shops, have a look at other items, look for the cheapest you can find or try and find a similar item within the price range of your budget. Going around to different shops will help the impulse go, if at the end of shopping around you still feel you need the item then make sure you can afford it. If you can’t afford it and you don’t need the item, then be strong and do not buy it.
3. Make a shopping list. It may seem like something only old people do, but making a shopping list really works. It not only helps you stick to your budget, it makes sure you only buy the items you intended to buy when you set out. Stores are designed to make us buy things we don’t want or need, and often when shopping we end up coming back without what we set out for. Make a list, stick to it. It will help.
4. Set a budget for each shopping trip. If you are going into town to shop, take out $100 from the bank or whatever you can afford and set this as your budget for the day. Only spend the money in your wallet or purse. Having cash will make you stick to your budget. Don’t buy anything on card even if it’s a debit card. Only spend what you have. Even a few small extra payments on cards, it will mount up. If you absolutely must have something that is out of your budget range for the day, check tip 2.
5. To save some extra cash, take around 10% of what you earn every week or month, and put it somewhere safe like a separate bank account. The money will soon grow and can be put towards something your saving for. 10% isn’t so much money that you will notice it being gone from your main spending budget.

Hopefully using these tips will help you get a better grip on your finance and help you budget for the future and avoid debt.