The Basics of Avoiding Debt By Budgeting

Most people think that it’s obvious how you budget, or that if you don’t make a lot of money, why would you budget, or whatever. They make excuses. Many people end up in a lot of debt because they don’t learn about all of the different things that they can do to get a budget in place. How do you make sure that you are dealing with a budget that works well? Are there ways to know that you’re doing whatever is necessary to get things done without too many problems? Here are some thoughts.


It is never too early to manage your money. If you have an income and use that income, you can make a budget. Yes, that budget may be tight and difficult to try and navigate, but as you learn how to budget with very little, it will be that much easier for you to budget what it is that you can utilize later on.

10%-20%-70%. There are a lot of different ways that you can utilize percentages in order to make sense of what it is that you want to be able to invest in. In one case, a person is supposed to tithe 10%, save 20%, and work with the other 70. That other ten percent can be used for charitable donations, saving for holidays and birthdays, or whatever. The reason that this works well for many reasons: it forces you to think about parts of your income as “off-limits.” You can work out what it is that you want to do and, in the long run, you’ll also find that it’s that much easier to sort out exactly what you can spend and what it is that you can do to get ahead of the game in the long run.

Every penny counts. Do not make the mistake that many people do sometimes and make excuses for the extra ten or fifteen dollars that you spent on this or that. Stick to your budget to the dollar. Now, are there reasons you may deviate (emergencies, holidays, vacation, etc)? Yes. But don’t make the deviations a habit, or there’s really no point to the time and energy you put into a budget. You want to have focus and know that, when all is said and done, your budget will be as stable as it can be, no matter what may come your way.

Take a look around and see what you can do with your budget. As you make sense of your next options and see what can happen there, you’re going to find that it really can be advantageous to work things out for yourself ahead of time. Avoiding debt starts with having a secure budget that works well for whatever you may need and that will give you the best advantages for whatever comes your way. That, in the long run, is going to be incredibly helpful as you move forward and live your best financial life.