Part 2 of Making a Budget

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Hopefully, you have read part one here or have already started a budget and stuck to it for the past few months. These are your next steps to getting out of debt and finding ways to save money. Step 1: 

Step 1: On to our new step one! I hope everyone has decent savings built up that I talked about in part one. Your first step is to set a strict amount you want to add to savings from now on. You will see why in a minute. Once we have our savings to our min. amount, we always want to keep contributing to it in the case of an emergency that makes us pull from it. 

Step 2: Next, I would love for you to find ways to save money on your basic bills. We went to prepaid phones, made sure all electric items are unplugged or off when not in use, we also found fuel programs, savings programs and such for where we normally shop for gas and food. 

Step 3: Don’t feel bad for trying to find a great deal. Why spend more money than you have to for everyday needs?  Coupons, sales, and markdowns are your friends.

Step 4: Look at your debts. Write them out from smallest to largest. Write name, amount, interest rate and number or website to pay at. Makes it easier to find this way.

Step 5: Now that you know your debts, if you are making min payments on active ones, keep doing so.

Step 6: If you have any in collections, call them to see if you can settle for an amount or set up payments.

Step 7: If you have any money left each month after this start paying more on either your smallest debts if you want to knock those out or to the highest interest rate debts so that way you pay less in the long run. (Interest is brutal).

Step 8: Now if you have done all this and you are out of debt except your mortgage, start making payments to retirement, college savings for kids or extra to your mortgage. 

Step 9: Being out of debt saves a lot of money and headaches for the family if something bad happens. Don’t keep putting it off. 

Step 10: If your mortgage is paid, I say bravo! This means more for savings (house repairs or updates), retirement and college savings. 

Thank you so much for staying with me for this two-part post. I want to say congrats for doing what you can to support your family and get out of debt. You are amazing, don’t let anyone tell you or make you feel bad for sticking to your budget. You do it for you and your family.