budget envelopes for different uses

How To Budget Your Money And Manage Your Personal Finances

For those who want to learn how to budget your money, Wisconsin Auto Title Loans, Inc. is here to help. We’ve put together the six steps you need to follow to take back control of your wallet, and it goes much deeper than just using coupons. Whether you are a first time budgeter or not, follow this guide to learn the real, big ways to cut down on spending, learn how to track and disperse your cash, learn ways to increase your income, and know what to do in a financial emergency.

Use These 6 Tips To Start Budgeting Your Money Right Now

1. Know Every Dollar You Spend

Most of us know the first way to control finances is by learning how to budget your money. This includes keeping track of every dollar you get and spend. Start with going back a month and looking at your bank statement to get an idea of how much you spent in a month. Most people know how much they spend on housing and bills, but are surprised by how many little expenses add up and are unaccounted for by the time the month ends.

If you are used to spending cash, start fresh on the first of the month. Note how much you have in the bank and keep track of what you normally spend. Then, in the second month, you can take this information and actually start making some changes so that you have something left over at the end of the month to save for the next month. If you keep doing this, you will start seeing that you have more and more cash at the end of the month.

good tips to budget money

2. Stop Penny-Pinching And Cut Down In These Areas

It’s great to save by buying in bulk, using coupons or cash back, and cooking instead of dining out, but there are bigger ways to save money. The two biggest expenses in most households are rent or mortgage payments and transportation. These are two areas most people say they can’t cut down on, but most of the time this is just a matter of preference. About 90% of the time, there are options to live in a smaller house or a less expensive area closer to your work.

This could cut down on hundreds of dollars in rent and gas every month, plus give you hours back every week from your commuting time. If you have a mortgage and can’t sell your home, learn more about house hacking or consider renting out your garage, shed, or backyard for storage space. If you’re making large payments on an expensive vehicle, consider “downsizing” to a reliable used car you can pay off quicker or pay less on.

3. Get On A Payment Plan

Most people have a hard time building up savings because of any pending debt they may have. Sit down and face your debt, no matter how disheartening it may seem. Write down all you owe and the interest rates on each debt. Then, make a monthly plan to pay each debt off one at a time. Consider the snowball method of paying off smaller debts first or consider the avalanche method and begin with your high-interest balances first.

4. Step Up Your Financial Literacy

Unfortunately, few people are taught financial literacy in school or at home. These are the keys of the wealthy, and they teach you how to make your money work for you instead of the other way around. When trying to learn how to budget your money, you should learn about things like high-interest savings, paying yourself first, building an emergency fund, and investing. Get books at your local libraries and take advantage of great resources like YouTube and podcasts.

5. Increase Your Income

If you are working a job with limited pay potential, consider learning a new skill in your free time. You can learn things like coding, graphic design, languages, and other business skills online for free through courses, videos, podcasts, blogs, and more. Make yourself more marketable and find ways to boost your income by changing jobs, taking on a second job, or starting a side hustle. It’s easier said than done but it can be done, and it will change both your finances and your life.

money for debt after budgeting

6. Prepare For Emergencies

Once you’re able to have some money left over after paying your bills, immediately start building a rainy-day fund. This will prevent you from taking on additional debt should an emergency arise while you learn how to budget your money. However, if you do get hit with an emergency before you build up your emergency fund, you still have options to help. One option you have is to come see us at Wisconsin Auto Title Loans, Inc. for a signature installment loan.

This is an unsecure loan that can get you up to $1,500 as quickly as a day to get you out of a tight situation quickly. And don’t worry, unsecure just means you don’t need to put up any collateral to secure the loan. To qualify for a signature installment loan, you’ll need your ID, an active bank account, and proof of your monthly income. If you’d like to learn more, fill out the online form on our website. We’ll then reach out, go over the required items, and walk you through the next steps.

Take Control Of Your Finances Today

Learning how to budget your money takes time and effort, but we believe anyone can do it. Any one of these tips can help you get started on your budgeting right now so you can start to get your personal finances in line. If you need help with a financial emergency on the way to your financial independence, lean on Wisconsin Auto Title Loans Inc. for a signature installment loan. We are here and waiting to help. Fill out the online form now to get started on the process today.


Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.