Everyone wants to pay all their bills on time. Successful debt management is a source of pride and of good credit. All of us want good credit whether we use it or not. Unless you have unlimited funds to spend however you wish, you will need a personal budget to pay off debts. Budgeting your money can be a difficult process. In order to create a household budget, you must include all your monthly and yearly bills. You must also include your spending money, savings goals, and retirement funding.
How do you create a personal budget? There are financial planning counselors at your bank and at individual insurance companies and brokerages. A financial planner will consider your finances, your goals, such as college funds, retirement fund, and general savings, as well as any debts you have. The counselor will help you create a monthly household budget including all of your bills and goals. You can revisit your budget as things change in your finances. A good rule of thumb is to visit your financial planner at least twice a year to make sure you are on track with your debts and goals.
Another way to create a household budget is to use budgeting software on your computer. Two of the top sellers are Microsoft Money and Intuit’s Quicken. These programs ask you the same questions as your financial planner. It takes a while to go through the setup based on the information you enter, but at the end, you have a way to track your personal finances and make sure you are following your budget. Creating a household budget gives you peace of mind that you are controlling your debt and your finances.