The first thing you should do when you are in control of your finances is to make a list of your fixed income and expenses in each column. It is wise to look at the primary pluses and minuses, ie the ones that go into your account every month. In addition, it is also a good idea to get an overview of the secondary income and expenses, ie those that are longer in between. Further editorial at granlogiacostarica.org
For example, your income may be salary, SU, child benefit, cash benefit and unemployment benefit, while your expenses may include rent, electricity and water, transportation, TV package, insurance, A-box and fitness.
Once you have an overview of your finances, you can find the items you have the opportunity to cut back. If you save money on your expenses each month, you also have more money in the account to pay off your debt. The more money you pay off on your debt a month, the faster you will be debt free.
How to set a budget
It is important that you are realistic when setting a budget. Therefore, you need to be precise when writing the various entries into your budget schedule. At the same time, make sure you take into account unforeseen expenses, as you can thereby save yourself financially if you suddenly get extra bills a month. In your budget, be sure to include your insurance policies, as well as all your other monthly or quarterly expenses. We’ve created a budget template that you can download and use for free. Just click on the link below:
Get rid of debt – Use our 5 tips for budgeting
- Use a budget chart to get a better overview of your finances. That way, it is more clear to you to keep track of your income and expenses.
- There may be differences between the expenses you have. Therefore, divide them into fixed and variable expenses so that you know which expenses you have fixed each month and which are variable. The varying expenses can, for example, be a trip to the hairdresser and dentist.
- Remember to include your food consumption in your budget. It makes it easier for you to see what money you have left for, for example, city trips, experiences or shopping, when all bills and expenses are taken into account.
- Make a savings. You’ve probably heard it since you were very young, but it can be a huge help to put money aside for unforeseen expenses. Maybe you are suddenly missing money for a car repair, broken home appliances, or something else. This is where savings can be beneficial.
- It is wise to include gifts in your budget. Many spend quite a lot of money on gifts for birthdays, confirmations, weddings, etc. It’s also an expense, so don’t forget to put money aside.
Get an overview of your finances
Have you decided that you would like to manage your debt? There are several things you can get started with first. Are debt overloaded in your life and are you tired of bills dumping in the mailbox?
First, you can hire a debt counselor who specializes in advising people on their debt. It may be a good solution, but it can also be expensive for you. The advantage is that the debt counselor has a great deal of knowledge and experience in helping people in your particular situation. If you hand over the work to a debt counselor, you do not have to do the work yourself, and instead the counsel will try to negotiate with your creditors. If you want to have more influence on your future debt situation, you can set a budget yourself. It requires work on your part where you have to conveniently set a budget and manage your creditors. It’s also a cheaper solution for you.
Manage your debt with free debt counseling
It is possible to get free debt counseling, but these offers require you to do the practical work yourself. The free debt counselors are voluntary and have limited knowledge. Therefore, you cannot expect them to help you with your entire debt situation, but getting help is a good and cheap solution. However, be aware that there may be waiting times for free debt counselors.