Follow-Up! Now that you have had some time to work on creating and using a budget, it is time for review. Take some time this week to check your actual spending in comparison with your budget. If you were within 100-150 dollars of your budget then you are on the way to taking control of your financial position. If not then we need to take some time and review the essentials:
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Remember to keep budget making simple.
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In order to be effective, a budget should always be realistic and attainable.
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Be sure to list all sources of income and all monthly expenses.
Once you have created your budget and have begun using it effectively, the next step is to “Get Out Of Debt”. Avoid use of Credit until you are able to reduce and/or pay off current personal debt, which includes credit card bills, consumer loans, overdrafts, etc. Many persons are misled into believing that they are in control, when actually, they are using credit cards, overdrafts and other such means to supplement their income and meet their daily living expenses such as food, clothing, etc.
If you intend to become the master of your money and be able to use it wisely then you need to develop a plan to break away from the use of credit facilities. The following steps can help you to get rid of debt, once and for all:
Evaluate Your Position
If you cannot determine your present position, it will be difficult to reach your desired destination.
List all of your debts and include even very small outstanding amounts: Don’t leave anything out.
Reduce Your Overall Debt
Start making monthly payments on all your debts. Concentrate on paying off the smaller balances first. As you pay off the smaller debts do not use the excess cash for daily expenses, use the available funds to reduce one of your next larger debts.
Example: If you were paying monthly towards your credit, then when the debt is finally repaid, use the that is now available to reduce your personal loan.
Use Every Resource Available
Check your possessions – you may be what financiers term as “house rich – cash poor”
Some persons have valuable merchandise in their homes collecting dust, such as; exercise equipment, appliances, etc. Others have extra merchandise in their homes, such as; Radios, TVs, Food Processors, China, etc. Make sure that you do not sell or trade items that you use on a daily basis or will need once you become financially secure
Be Informed
Ask questions before making a purchase. Use information to your advantage.
Break Your Addiction
If you do not break away from the desire to buy on credit, you will never be able to Take Control of Your Financial Position
Stick to Your Goals
It is important that once you have formulated a plan, you follow through with it as closely as possible.
Only you can control your personal finances and better your financial position. Educate yourself, start a savings program, establish goals, invest towards your future.
You may collect a personal monthly budget form and information leaflet at our office:
Caribbean Commercial Bank, 1 St Mary’s Street, The Valley, Anguilla
If you need help or further information, feel free to contact us at 497-2571 or email: vanessac@ccb.ai.
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Author
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To find out more about author Vanessa Connor, click her picture.
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