Tips on how to pay off your debt, increase your credit score and how to keep yourself from going back.

Step 2: How to make a BUDGET

The problem: Most people have no clue where their money goes. In fact take a look at people who won the lottery and went bankrupt because they did not know how to properly manage their money. Same can be set for those who are professionals such as a movie star, or more commonly an athlete. 

The solution: Create a budget that spends every single penny of your income for that month. To do that you first have to look through your expenses and see what you spend your money on. I personally use a website I created, called Budget Cactus, it is free for everyone to use, but you don't have to use it. In fact there are many different online websites, as well as excel spreadsheets you can use to accomplish the same thing.

Here is a sample budget you can use as an example:
Income for this month is 3000
Rent is 1000
Utilities: 300
Car is 300
Savings: 900
Charity: 300
Personal: 100
Recreation: 100

IHere's what a budget cactus looks like:

This was taken as an example of how it looks using Budget Cactus. The B is your budget, the S is how much you spent, and you can see the Red O means that you went over your budgeted amount for that category.

You can use any software you want to use to manage your budget, but please make sure you use something, and that you keep working at it. Your first budget is more than likely going to change, it's okay if it doesn't work out the first time, or even the tenth time. Keep working on it until you find something that works for you.

If you are interested I go into great details for budget planning in my ebook. Every category you should be using, and those that you should actually take money out for. Also with your order you will get access to my personal online budget software. I built this software from scratch, and it goes perfectly with what I am trying to teach you. Register Here