How To Manage a Budget

The benefits of adhering to a budget include being able to control how money is spent, how much is spent, and how much is saved. So you won’t need to apply for unsecured personal loans. But many people find the task of budgeting confusing and possibly even daunting. It doesn’t have to be, and the following suggestions are ways to create a budget that’s simple, effective and convenient to use.

budgeting

– Write down what goes on with your budget.: keep a notebook with a list of all income and all expenses listed as well. Subtract each expense from the total amount of income for the period to balance the budget.

– Create a spreadsheet: for those who’d rather have their budget in a digital format it’s easy to create a spreadsheet or other table with the income and expenses for the month on it. The spreadsheets let you enter lots of information at once and calculate the math of budgeting automatically. There are also free templates available online to use instead of trying to format a table from scratch.

– Free online websites: there are lots of resources online that not only provide information about effective ways to budget but also allow users to enter their information and manage their budget for free. These websites have features that let users put in income and expenses and then keep record of what happens to each over the month while calculating whether the budget is balanced or not.

These are just three of the most simple and cost effective ways to create a budget that’s easy to view and maintain. Each option gives users the ability to really account for and determine how money is spent and prioritized.

The Difference Between Good and Bad Credit

Good credit occurs whenever you borrow money and pay the entire amount back on or before time. When debts are paid off in this manner reports of it are given to the credit bureaus and credit scores are raised because of it. It stands to reason that if good credit is established by paying debts on time and in full then bad credit happens when debts are left unpaid altogether or even when they are paid late on a regular basis.

fico score rangeMissing a payment once or twice over time won’t result in immediate bad credit just as paying a bill on time will only improve and not completely fix bad credit. The process of establishing good credit or incurring bad credit takes time but managing and maintaining either is done by being responsible with money and paying attention to keeping up with bills and making timely payments. Credit is such an important factor in our society so it is imperative to maintain good credit or fix credit that isn’t so good.

The credit score is given a lot of attention though most people don’t know exactly what a good credit score is. Credit scores are given by FICO and range between 301 and 850. Though we speak of credit in terms of good or bad there are actually five categories on the scale of credit numbering. Those categories are bad credit, poor credit, fair credit, good credit and excellent credit and the numbers of the scale are divided to go gradually up between each category. Bad credit is any score that numbers below 600. Poor credit is any score that lands between 600 and 649. Fair credit is a score that falls anywhere between 650 and 699. Good credit is a score of anything between 700 and 749. And an excellent credit is a score that is at least 750 and anything above it.