Create a Budget for effective credit repair
Creating a BUDGET is important to identify the following specific details and is essential to
achieving an efficient credit rebuilding process. It can also help with debt consolidation.
Most people if asked how much money they earn, how much they owe and how much they
spend will give averages or approximations if anything at all.
To manage money effectively, in particularly YOUR money, it will involve that dirty little word
we all try to avoid - BUDGET.
These credit rebuilding tips are very important to getting a handle on your money.
achieving an efficient credit rebuilding process. It can also help with debt consolidation.
Most people if asked how much money they earn, how much they owe and how much they
spend will give averages or approximations if anything at all.
To manage money effectively, in particularly YOUR money, it will involve that dirty little word
we all try to avoid - BUDGET.
These credit rebuilding tips are very important to getting a handle on your money.
- How much money do you EARN?
It is important to know how much
money is coming into your home to
create an accurate budget. If you
are married, it is necessary for both
of you to reveal everything to each
other and put it down on paper.
DO NOT hold anything back.
Focus on NET PAY for this credit
repair tip, as you want to know how
much actual cash you have.
Count everything:
- sports cars
- designer clothes
- jewelry
- high dollar shoes
- hairstylists
- manicures
- pedicures
- eating out
- vacations
- weekend excursions
- tanning salons
- movie tickets
- health clubs
- High Value Cable
- excessive cell phone options
- full service car wash
Many of us fall behind on our debts because we spend beyond our means. Trying to stay in
style.
You must take a very serious and hard look at where you are spending that “extra” cash
that you think you have left over, after you have paid all of your debt.
I do not mean CUTTING BACK. What I do mean is CUTTING OUT on all the needless ‘fun
spending’ and directing that extra cash towards paying off your debts.
I know that if you are committed to manage your money, setting a budget and starting with
these credit repair tips, it will most likely result in extra money to pay off your debt, become
debt free, and have personal success in credit repair.
Then you will be able to spend that “real” extra cash on the needless 'fun stuff' and really
enjoy it, rather than worrying about how you are going to pay for it.
These three credit repair tips will prepare you for the journey of becoming debt free, and are
the foundation of the success that I certainly pray that you will achieve.
style.
You must take a very serious and hard look at where you are spending that “extra” cash
that you think you have left over, after you have paid all of your debt.
I do not mean CUTTING BACK. What I do mean is CUTTING OUT on all the needless ‘fun
spending’ and directing that extra cash towards paying off your debts.
I know that if you are committed to manage your money, setting a budget and starting with
these credit repair tips, it will most likely result in extra money to pay off your debt, become
debt free, and have personal success in credit repair.
Then you will be able to spend that “real” extra cash on the needless 'fun stuff' and really
enjoy it, rather than worrying about how you are going to pay for it.
These three credit repair tips will prepare you for the journey of becoming debt free, and are
the foundation of the success that I certainly pray that you will achieve.
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- Take home pay from regular job
- Overtime pay
- Bonuses
- Commissions
- Incentives
- Pay from a part-time job
- All other extra income
How much money do you OWE?
Admittedly, a nauseating part of the budget process, you must write down and calculate all of
your debt.
Most people pay their debts as they “come in”. Still, others pay their debt as they
“remember it”. Neither one of these options is an effective budget plan to manage your
money.
The best way to manage money and get straight with your debt is to create a budget. A
system of paying your debts.
I recommend two steps.
First, make a list of all your debts. Include the name of the creditor, the amount of the
payment to each creditor, the dates they are due, and the grand total owed to each
creditor. Meaning the pay-off amount.
Add up the total of monthly payments and the grand total due to all creditors. This will give
you a clear picture of your total money spent each month on your debt.
(Money that could otherwise be earning interest in a high interest savings account)
Second, make use of a wall calendar. Preferably, one with big enough squares to write in
the names of your creditors and the dollar amounts that are due in the appropriate due
dates. Make the time to fill in the entire year, January through December. Do not fill it in as
you go!
You don’t want to conveniently forget one of your creditors. By doing it this way, you will
happily see, with every flip of the month, just how much money is being wasted as opposed
to earning positive interest in your bank.
These two steps must be used simultaneously to be effective.
How much money do you SPEND?
This step will make you cringe. It may even make you cry. Not so much because you will
realize how much money you are needlessly spending. But more because, you will be
forced to decide what stuff to cut out.
In most situations, needless spending is fun spending. And nothing turns adults into babies
faster than telling them that they can’t do the stuff that’s fun anymore. At least the fun stuff
that cost money.
Some fun stuff that causes needless waste are: