Debt Consolidation USA educated consumers of how to identify their budget priorities
Los Angeles-Long Beach, CA (PRWEB) July 29, 2013 -- On July 25, Debt Consolidation USA published an article that aims to provide useful insight as to how consumers can prioritize expenses in their budget plan. In most cases, consumers need to rank expenses because of so many payment obligations and a limited income.
The article is titled, “On Identifying Your Budget Priorities” and it educates readers on how to determine which expenses should be put high in the expense list. Debt Consolidation USA admits how people know that budgeting is important but they sometimes go about it the wrong way so it does not serve its real purpose. The article states that the whole purpose of budgeting is simply to help the consumer live within their means and ensure that the important expenses are funded.
The article claims that the real challenge in budgeting is making sure all the priorities are met despite a limited income. The various expenses are ranked according to the following priorities:
1. Savings. This part of the budget should be shaved off even before other expenses are met. The article states that if it is immediately taken out, the consumer will not really miss it and the temptation to spend it will be eliminated. The savings should cover the emergency, maintenance/replacement, and retirement fund.
2. Fixed expenses. The article cites this as the next priority. These are the expenses that have a fixed amount every month. This includes home/rental payments, utility bills, insurance premiums, and other subscriptions.
3. Debt payments. This comes third and the article claims that the consumer must rank the debt according to priority too. The suggested ranking should put secured loans first, followed by credit card debt and then other unsecured loans/debts.
4. Variable expenses. This involves the expenses that change in amount every month. The article reveals that if there is a need to cut back on spending, this is where the consumer should look first (or at least after the entertainment). The expenses include food/groceries, gas/transportation, and clothing/shoes.
5. Entertainment expenses. The article placed this on the bottom of the list because these are the expenses that people spend on to have fun. Usually, these are the ones that they can live without. These include eating out, watching movies and memberships (e.g. gym).
Debt Consolidation USA encourages consumers to exert a bit of foresight when they put entries in their budget plan. For instance, saving up for a dress when a friend is about to get married or a health plan for a sickness that runs in the family.
The article also notes how most people have a lot of funds to save up for - even investments. They encourage consumer to put money on these funds regardless if the amount is small because it will grow over time. The important fact is to just put aside money. A small amount is better than having none.
Debt Consolidation Loan understands how a limited income can make budgeting a challenge but that is actually when it is all the more important. The article provides 3 tips to help make a frugal budget easier to follow.
1. Base budget priorities on personal life goals. For instance, if the consumer wishes to buy a home, they have to prioritize saving. If being debt free is first, debt payments must be put on top.
2. Do not justify wants for needs.
3. Increase earnings. Since the difficulty stems from a limited income, the ideal solution for the consumer is to increase their income.
To read the whole article, visit Debt Consolidation USA.
Adam Tijerina, Debt Consolidation USA, http://www.debtconsolidationusa.com, 1-877-610-6990, [email protected]
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