Budgeting

Learning to budget your money is an important step in your financial health. Once you have written down your income and expenses you will start to see where your money is going and some of it may surprise you.

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Tip number four has to do with your debts. Many times when we have credit cards or some other debt that we need to pay off, we try to pay it off in large lumps or all at once. The best thing to do is to take the debts that are closest to their limits and double or triple the minimum payment. Never just pay the minimum. That will make it almost impossible to pay off. And don't worry about the high interest you may have. Even if you are paying it off in large sums it won't make much difference in the long run. This may seem like bad advice but I have seen many recent reports where experts give this same tip.

Once you've figured out how much you spend on average, monthly and yearly, put together a budget based on the different categories. Remember to create a budget based on what you actually spend, at least initially, rather than what you think you should spend. (Don't forget the lottery tickets, if you buy them regularly!) If you have credit card debt, budget for more than the minimum payments, and pay down your balances, highest interest rate first.

There are two major companies that offer personal budgeting software packages, Microsoft and Quicken. Both companies offer software designed to be installed on a home computer. The features available differ between the two products, but the core functions are the same.