5 Personal Budgeting Tips For Anyone Who’s Ready To Be Debt Free
Want to know the best personal budgeting tips that actually work? These are the tried and true budgeting methods you need to know about.
Personal Budgeting Tips that are, dare I say *Insanely* popular (if you are ready to be debt-free).
I don’t know about you, but when I added all my debts and realized I had to pay more than $72,000 in debt, I almost fainted! Meanwhile, I couldn’t sleep, I was constantly stressed about my finances…
I didn’t even know where to start! I was so confused, but realized I needed to do something, anything to gain control of my money.
Sound familiar?
Deciding to claw your way out of debt is extremely exciting! And, if you are anything like me, you are doing all the research you possibly can to make sure you CAN actually do this. As someone who’s ready to be debt-free, I am going to give you the top personal budgeting tips that I swear by.
You are going to learn firsthand all about personal budgeting tips that can help you become debt-free, and build savings faster. (Because I know how frustrating, scary and overwhelming debt can feel.)
I started from having a negative balance on my bank account, no money in savings, and no knowledge on how to set up a budget. I literally knew nothing about money until I was deep in debt.
After learning about all these personal budgeting tips, you are going to be a pro and feel motivated to attack your debt.
This post is all about the best Personal Budgeting Tips for anyone who’s ready to make their debt disappear.
Best Personal Budgeting Tips:
1. Easy Budgeting For Beginners:
If you’ve never created a budget before, you need to go on youtube and check out this video. It shows you how to create your first paper budget in 8 simple steps.
In order for you to win with money, you have to create a budget that fits your lifestyle. That’s why I like to budget using a pen and paper, so I can customize it to fit my needs. So, I make my budget super flexible because dealing with money can be super stressful and I don’t want to feel restricted.
RELATED POST: {A Step-By-Step Guide On How To Set Up A Budget}
Also, I followed Dave Ramsey’s zero-based budget system so I would budget for every single dollar I had that month. And, here’s exactly how to do a zero-based budget this week
After that, I listed all my debts from smallest to largest and did Dave Ramsey’s debt snowball method. For example, I paid the smallest debt first. Next, I would use that freed-up money to pay the following debt and so on. That way, I can see my progress fast, celebrate those “small wins” and stay motivated.
2. The BIGGEST Personal Budgeting Tip…
Is that you have to SUCK at budgeting and be ok with it. And. Not. Give. Up.
It will take you many budgets for you to actually stick to it and get the numbers right. Here are some tips on how you can stick to your budget in 3 easy steps
Oh, and FYI, there is no right way to budget, so give yourself some grace.
RELATED POST: {Why Is My Budget Not Working?}
3. Best Budgeting Ideas
Remember, budgeting is very personal, so you get to make your own rules. You can decide how much you need to save in your emergency fund before you start making extra payments in your debts.
For example, if you feel like you need to save $3,500 in your savings account before you can start throwing extra payments towards your debt, then do it! (You have to do what’s best for you and your family.)
Next, analize your spending (without cutting anything.) Look at your past bank statements and try to figure out where did your money go. Try to do it without judging yourself, so quiet that negative voice inside that likes to annoy you. Because basically all you are doing is looking at the mirror without changing anything.
After that, decide what expenses you want to cut. Then, make a simple budget that can help you save more and spend less. And, with that freed-up money, you can build your emergency fund or make extra debt payments.
4. Money Management Advice
I know you are buried in debt and can’t really see the light at the end of the tunnel now. But, you are ready to have that much needed financial peace of mind. And, regularly setting money aside (-aka saving-) can help you do that.
I’m sure the thought of saving your first $1,000 seems near impossible, but instead of looking at the total amount, focus on saving small amounts. For example, keep budgeting and paying all your bills, but stash away $5 or even $10 every week. Before you know it, your savings will grow to $1,000 (without thinking about it).
You’ll be creating a new habit of savings. (Which can help you from taking on new debt.)
Oh, and FYI, you NEVER stop saving. With every single paycheck, you want to ALWAYS send some money to savings (even if your budget is already tight).
Consistency is the key to winning with money.
5. One of my favorite Finance Tips
Listen to Podcasts!!! Need I say more?
Podcasts are totally free and it’s one of the best ways you can get daily dose of encouragement to keep paying your debts.
I can’t tell you how much I’ve learned from listening to personal finance podcasts. I would start by listening to Dave Ramsey podcasts. Knowing his baby steps and general financial advice helped me SO much.
Another podcast I love is Bigger Pockets Money. And of course, the Suzy Orman Women & Money podcast, is awesome!
Learning all you can about personal finance now will be an investment that your future self will thank you for.
I know you want to see a Personal Budget Example, so I linked this one.
In Conclusion…
This post was all about the best personal budgeting tips so you can be as prepared as possible when tackling your debt.
Other Posts You May Like:
5 Genius Budgeting Tips For Beginners
7 Insanely Practical Money Tips for Anyone Who’s Ready To Improve Their Finances Now.
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