Beating debt-and finding financial freedom-can be difficult. Living paycheck-to-paycheck is getting you nowhere, and it can break your spirit too. Everyone around you may be suffering due to your financial debt, and you can’t think of anything else to do.
Learning how to budget might seem impossible, but it is essential in beating debt. Unfortunately, many people don’t know how to budget, but by following a few easy steps, you can be on your way to financial freedom.
- Create a spreadsheet from which to work. Use OpenOffice, which is a free productivity suite.
- Type your budget categories down the left column. Make them as simple or as complex as you want. Keep in mind that the more complex they are, the more hard they will be to track.
- Type your months across the top, starting with the previous three months and looking ahead an additional three months.
- Fill in as much of the previous three months as you can; rent, car payments and insurance payments should be easy to retrieve from bank records.
- Decide how to track your expenses ongoing; debit card or prepaid credit cards are the best options. Keep receipts from cash expenses and fill in your budget at the end of the day. Make it simple.
These five steps will help you learn how to budget and are an important step to financial freedom. It is important to look at your budget every day and keep practicing.