Budgeting For Beginners: How To Get Started
When it comes to budgeting for beginners, having the right tips on hand can be crucial. A properly planned budget can help you feel a lot more in control of your own finances and allow you to finally start saving money for your goals and dreams. And the best part is that finding the right tips to help you stick to your budget is not impossible. Just follow the five simple steps in this guide and you will be on the right track. Additionally, learn how a car title loan can get you closer to your goals.
5 Simple Steps To Making Your Money Work For You
1. Determine Your Income
The first thing that you need to do is find out how much money you’re actually dealing with. Make a list of all of your sources of income. It might simply be what income you take home from your job or your salary plus rental income, for example. If you don’t earn the same sum each month, then find out your average income by adding up your salaries for the last three months and then dividing them by 3. This number can be used as your baseline.
2. Calculate Your Expenses
Now, if you are just learning about budgeting for beginners, you need to figure out where your money is going. Start by writing down all of your fixed expenses that you have to pay. Those include any loan payments, utility bills, rent, insurance, groceries, and so on. Once you calculate all of your mandatory monthly expenses, subtract the number from your monthly income. This is the amount of money that you will soon start using to reach your goals.
3. Identify Your Financial Goals
Setting financial goals and writing them down is incredibly important, as this will help you prioritize them and see how much exactly they would require. You can have short-term and long-term goals. The former should take up to 3 years to achieve. Examples of short-term goals would be paying off credit card debt, setting up an emergency fund, or saving up for vacation. Long-term goals, like saving for retirement or your kid’s education, can take a while to achieve, but it will happen as long as you stick to your budget.
4. Create A Plan
Creating a plan is where all of the numbers will come together. You can decide to put aside all of your money that you won’t spend on your needs (utility bills, loan payments, groceries, etc.). But after living for a month like that, you might start feeling depressed and this, in its turn, can make you give up on learning about budgeting for beginners. This is why following the 50/30/20 rule for saving might be a better option. Spend 50% of your income on your needs, 30% on your wants, and set aside 20%.
5. Adjust Your Spending
Even if you’re following the 50/30/20 rule, it doesn’t mean that there is no room for improvement to make sure you spend the right way. Take a look at your ‘needs’. Chances are high that there is a way or two for you to cut down on your utility and grocery bills. When it comes to your ‘wants’, it is vitally important to reward yourself. But instead of buying a drink at a coffee shop before work every day, you might want to choose to redirect these few extra bucks to your savings account.
Why Should You Choose Southwest Title Loans?
You would certainly feel a lot more confident if you have an emergency fund set aside. But if you have just started following the budgeting for beginners tips, it can take you a while for you to save up 3-6 months’ worth of living expenses. Unfortunately, an emergency might occur before you are able to establish a cash reserve. In such a case, getting a car title loan might become an option. If you do choose to work with us at Southwest Title Loans, then consider the following:
- You might be able to qualify for up to $15,000.
- The in-person process may take only 30 minutes.
- You might be able to get your hands on the much-needed funds the following business day or even on the same day!
- You can choose a location where you’d prefer to meet with the company representative, in case you don’t want to come to one of our store locations.
- You can continue driving your vehicle during the duration of the loan.
Apply For A Car Title Loan Today!
When you start using these tips, you will find that your finances will actually improve. So start using one or more of these tips to starting crafting your budget and fixing your finances today! And when you are hit with an emergency and can’t keep learning about budgeting for beginners, getting a car title loan can help you out. In fact, with us at Southwest Title Loans, you might be able to get the fast money you need. Fill out the online form and get started now.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.