The holiday season has ended, but the holiday bills are starting to roll in. Between that and New Year’s resolutions, you might be thinking about trying to get a handle on your budget. Maybe there’s a credit card you want to pay off, maybe there’s a trip or a down payment you want to save up for, maybe you’re just tired of wondering where all your money went a week after payday.
Managing your spending can be simple. It’s just a matter of knowing where your money’s going. If you need a little help tackling this, we’ve got some tips for you.
1. Create a budget plan
The first step is figuring out how much money you need for on the bills that can’t be avoided. How much is your rent, mortgage, or car payments? What about water, electricity and phone bills? Once you’ve deducted those bills from your income, how much is left for food and entertainment? This is the monthly budget you have to play with.
2. Track your expenses
Keep a journal of your expenses. Write down everything you spend for a month or two. This will give you a good idea of where your money’s going, and from there where you can afford to tighten your belt.
3. Only spend what you have
If you’re trying to get your spending under control, you’ll want to stay away from credit cards. You only want to spend the money you have, rather than spending on credit and creating more bills for the future. If you don’t like carrying cash, or want to shop online and need a card to do it, try using a prepaid card like the Net+ Prepaid MasterCard®. Since you can only spend what you’ve loaded onto the card in advance, it helps you avoid going over your budget.
4. Pay down your debt instead of going into it
The point of keeping a budget is to learn where your money is going and how much you can save by distributing your cash more efficiently. Identify your major expenses and see if you can reduce any of them. If you have multiple debts, focus on the ones with the highest interest. Once you know where your money is going, you’ll have a better idea of how to redirect it towards that vacation, new car or just paying off a debt.
Net+ keeps you on top of your money
Your eWallet and Net+ card can help with every step of this process. Put your food and entertainment money into your eWallet and spend it with your Net+ card, and your transaction history will keep track of all your expenses for you. And you’ll only be able to spend what’s already in your eWallet, so you’ll stay on budget.