PERSONAL BUDGETING & DEBT MANAGEMENT
PERSONAL BUDGETING
Budgeting is a personal finance tool for taking control of your money. It is a powerful tool because it allows you to determine how and where you want to spend your money. It allows you to make financial decisions ahead of time, which makes it easier to cover all your expenses along with paying off debt, saving for the future, and being able to afford fun expenses. Budgeting allows you to monitor your progress on financial goals and stick to your financial plan. Eventually, it creates opportunities to eliminate debt and build wealth.
In this workshop, we introduce the concept of Pay Yourself First. "Pay Yourself First" is a personal finance strategy of increased and consistent savings and investment, while also promoting frugality. The goal is to make sure that enough income is first saved or invested before monthly expenses or discretionary purchases are made.
We then discuss how we can identify the expenditure. The key component of personal finance is financial planning, which is a dynamic process that requires regular monitoring and reevaluation. One's personal financial situation can be assessed by compiling simplified versions of financial balance sheets and income statements, The financial plan details will help accomplish goals. It could include, for example, reducing unnecessary expenses. Execution of one's personal budgeting often requires discipline and perseverance. We also discuss 20+ Ways to Find Money to Work for You. Come and learn this expenditure exercise in the Personal Budgeting & Debt Management Workshop.
TURN WASTING MONEY INTO BUILDING WEALTH
It's easy to overlook all the tiny little "leaks" in your budget. You're busy with work, family, and other relationships. You swipe your credit card as you buy groceries, pay rent, and make other necessary purchases. With all of that going on, it's difficult to track your spending accurately.
When you finally do check your bank balance, you may be surprised to see how low it is.
Here are some starting points as you begin your search for budget leaks, along with some tips for how to get your budget under control:
DEBT MANAGEMENT
Debt management is a way to get your debt under control through financial planning and budgeting. The goal of a debt management plan is to use these strategies to help you lower your current debt and move toward eliminating it. We discuss how Debt Management takes commitment and discipline to focus on paying off debt.
Your financial foundation is an essential set of habits and practices that create the lasting financial security and stability you need to design, build, and live the life you want. In this workshop, we briefly show how we are creatures of habit. When it comes to understanding spending habits, people often forget that they spend the same way with the same set of conditions. You can learn more about the spending habit discussion in Personal Budgeting & Debt Management Workshop.
THE RULE OF 72
Recommended by LinkedIn
We use the rule of 72 to illustrate how fast the cost of debt in interest rate could double the money owned. The Rule of 72 is a calculation that estimates the number of years it takes to double your money at a specified rate of return. If, for example, your account earns 4 percent, divide 72 by 4 to get the number of years it will take for your money to double. In this case, 18 years.
Debt management is one of many options that consumers have for reducing their credit card debts. Consumers can try to manage their debts on their own. Financial experts recommend that consumers should be tracking how much money they pay out every month, not only in terms of what they pay to reduce their various debts, but also for everyday and cost-of-living expenses. By doing so, they may be able to identify ways to cut costs for luxuries and other purchases even before making more radical decisions. In the discussion, we also talk about what to do if you have been carrying a credit balance. We introduce how the Debt Roll-Up method as one easy and quick way to pay off debts. The Debt Roll Up process or known as the snowball method is simply to pay down the smallest credit card debt as fast as possible and pay minimums on all other debt. Then pay that extra toward the next largest debt. Though this method is a quick win and can be a confidence booster, it requires commitment and discipline.
Sometimes debt can be good to help you build a credit score or accomplish goals such as buying a house that would be hard to do without a loan. In this matter, we explore Credit Scores in relation to Debt Management. A credit score is a three-digit number, usually on a scale of 300 to 850, that estimates how likely you are to repay borrowed money and pay bills. The higher your number, the better you look to a lender because it signals that you’re more likely to repay your debt on time. Credit scores are calculated from information about your credit accounts. That data is gathered by credit-reporting agencies, also called credit bureaus, and compiled into your credit reports. The three largest bureaus are Equifax, Experian, and TransUnion. Learn what key factors impact your FICO® Score as part of Debt Management and many more subjects related to Personal Budgeting and Debt Management in this workshop.
In conclusion,