Our CCCS Experts Explain Budgets

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Confused about the complexity of budgets? Don’t be. A budget is simply a way to sort expenses and income, explain the financial advisors at Consumer Credit Counseling Services (CCCS) agencies like ours. By analyzing your household’s monthly expenses, and income, you can see where the dollars come in and where they are spent. Our credit counselors say that planning household finances without a budget is like trying to drive to your vacation without having a destination.

When seeking to improve household finances, setting financial goals, and creating budgets that focus on reaching those goals, a well-planned budget will lead to successful financial management.

Budget Basics

  • Start right now! Look through last month’s bills and checking account statement and add up expenses and income. Make 12 columns to create a year’s budget, factoring in seasonal spending (holiday gifts, summer travel).
  • Check your budget each month to make sure you’re still within the plan. Expense and income amounts will change, so adjust your budget categories as necessary.
  • Our CCCS experts place expenses in two categories. Fixed expenses, which don’t change each month, like a house or car payment. Variable expenses do, like heating bills, groceries or gas. Monitoring and adjusting the variable expenses is the key to sound financial management.

Common Budgeting Problems

  • Relying on cash: Cash is difficult to track. Use checks and/or debit cards. Their paper trail shows where the money goes.
  • Starting Out Too Strong: Trying to save money, beginning budget makers sometimes cut too many costs. A too-strict budget rarely works because people simply give up. Go ahead and budget a reasonable amount for fun outings or hobbies that you enjoy.
  • Spending the bonus: What about an unexpected bonus? It’s tempting to spend, but it is smarter to put in savings or toward paying off existing debt. The extra cash boost will push you closer to your long-term goals.

Walking that line between income and spending can be a challenge. An impartial credit counselor, like those at ClearPoint, can help you set a realistic financial goal and a budget that works for the entire family. We’ll help you put aside cash for savings every month, and work with you on a debt management plan if necessary. Get started on your budget today. It’s your road map to a healthy financial future.

To make an appointment for a free credit counseling session, please call 1.888.656.2227 (CCCS).  Or, you may start the process online.

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