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What is budgeting and how it can improve your life?

How Budgeting can improve your life? 

All our life revolves around planning. You have to plan and stick to those to lead a successful and balanced life. Now we hear about budgeting, what exactly is budgeting? Budgeting is basically the process where you create a plan on to how to spend your money right. This plan you have created after huge research and it is known as a budget. Before we go on preparing the plan, we have to make sure that, we certainly have at hand the money you require for your expenses.

What is budgeting?
What is budgeting?

Why is budgeting important in our lives?

Budgeting helps by ensuring the security that you have all the money to meet your needs and requirements. And once you create your budget, you ought to check if it is apt for you, and you got to alter these with respect to your requirements and keeps you on track. Now, let us take a check on how budgeting helps you:

1. It helps you to meet your goals

No matter what your goals are, be it to get rid of your debts, save up to deal with your retirements, fund your kid’s education, if you have a plan in hand, will help you save more.

2.Combined budgets

It is essential for you and your partner, after your marriage to start discussing over budgeting, combined savings, etc. This will help you to stay on track with your goals.

3. Every month your needs would differ

You might have noticed this, some months your expenses would just go out of your hands. Like paying up for hospital bills, education fee travel, etc. So, the best thing you can do is to set apart a buffer amount that you can use according to your expenses.

4.Helps you prioritize

We know this tagline – “Needs are endless” You got to categorize your needs and wants and spend respect to that. You have to set prioritize your wants and needs.

5. Relieve from all your debts!

Debts are something that would hold you back. The first thing you ought to do is to pay off all your debts. Are you paying your credit card bills right? If not, be sure that you do them on time and finish them off! Have you heard about this “Credit cards are a debt trap?”So be careful while you deal with them.

6. Find difficulty in planning?

The best thing you can do is to check out those online budgeting tools available. These would help you understand more about budgeting and meeting your requirements on time.

Now, are you worried about relieving from debts? No worries, as we had discussed debts are something that would hold you back from attaining your goals. Let us now check about how to deal with debts –

5.Create a strategy

You need to create a strategy that would help you pay these off. But while you create one, it must be agile and must help you to deal with other circumstances.

What is a credit card debt relief?

These credit card debt reliefs are indeed costly. Preparing a debt settlement contract is a tedious task because you need to deal with a lot of convincing tasks. But if you don’t have any other option to pay back, you ought to file for relief, but these would create a hassle while you go on with applying for credit cards in the future.

This process of settling debts involves a lot of tedious hardcore as well as long term attempts for debt collection from your lenders and these damages ought to last for a long time indeed. Some debt consolidation firms would convince you of plans, and these might even lead to lawsuits. So, think twice before you fall prey to corrupt organizations.

Now, let us talk about debt consolidation.

Debt consolidation is indeed very simple. You take another debt you pay off all your recurring debts altogether. This method works for two kinds of people.  If you are fed up of making multiple payments and want to just go with a single payment every month or you just want to lower the interest rates by taking a different one.

Have you heard about home equity loans?

You can just take a home equity loan, or another option is by opening a new credit card and just transferring all the balances over to the new one, here the add on is that you wouldn’t have to pay the introductory interests.

The next is to use up a bad debt consolidation loan from companies according to the debt consolidation companies reviews, and here the main plus point is that you can cut down your cost of debts, but you have to know this, these bad debt consolidation loans are quite costly.

You might have this question. Do these debt consolidation loans affect you while you apply for loans or credit cards? Well, that is a very genuine concern cause these would have made your score go down.

If you still have no idea about dealing with debts, you can just check out the debt management plans. These plans are developed by a manager to whom you ought to make a payment, and he would do the distribution of these funds to those accounts payable. But here the disadvantage is that you wouldn’t be able to try getting a new credit card etc.

Now let us come to the main question. Do we have to consolidate?

Yes, the main thing here to consider consolidation is to avoid taking up new sources of debts, because these would, in fact, bring you to a worse situation! It might affect your credit scores, but you can be content about your finances, these credit scores would build up and get back after a period of time. The main concern people have is of this ‘dip’ in their scores. But you need to understand that, paying off all your debts is the main concern as of now!

You would find a lot of online tools that would help you in paying off your debts by specifying a monthly payment and the number of years you would take to pay them off.

Have a news story, an interesting write-up or simply a suggestion? Write to us at info@oneworldnews.in

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