Are you starting a credit repair program? Now is the time to build a budget. A budget is the perfect complement to your credit repair efforts. Many people think of a budget as a hardship or an austerity. It does not have to be either. In fact, once you get started you should find it very liberating. You will feel in control of your life, and you will enjoy the inner peace that comes from being on top of your finances. Let’s get started.
Put it in Writing
Effective budget building must be done in writing. Even if you believe that you have a mental grasp of your obligations you will benefit from putting it in writing. Get a fresh pad of paper and a pen. Clear off your desk or kitchen table and get to work. List all of your expenses. Think of everything, from the big monthly obligations like your rent and auto payment, to the little cash outlays like lunch. You might find it helpful to read though your check stubs and your credit or debit card statements.
Include Everything
Do you have any large periodic outlays that you have omitted? How about auto or health insurance? How about your vacation? If you have these kinds of periodic outlays you should estimate the total amount of money you will need and divide it by twelve. Treat this total like a monthly expense that should be set aside in savings each month. Unexpected expenses are one of the greatest threats to your credit repair progress. Make sure to be as comprehensive as possible.
Find Your Balance
Once you have listed all of your expenses compare them with your take home pay. How do the numbers compare? If you have plenty of money left over, congratulations. Your credit repair progress is not at risk. But if you find that you are spending more that you bring in it’s time to evaluate all of your expenses. Keep an open mind. There are ways to cut costs without cutting the quality of your life. Many of our credit repair customers report that they are living much better after reorganizing their finances.