Learn How To Budget When Using A Credit Card

April 10, 2012 by  Filed under: Credit 

Staying on a budget is a challenge for some people. Budgeting is not something that every household does, but it is certainly a benefit and can provide amazing results when it is put into place and committed to. Many people find it difficult to budget when they use credit cards. They wonder how to fit their credit card purchase into their monthly budget, how to plan for accidents or emergencies for unexpected times that they will need to use their credit card. One of the biggest patterns of financial defeat for numerous people is that when they are unable to stick to a budget they created, they give up and toss in the towel.

There are small steps you can begin taking if you want to create a budget for yourself or your family. It sometimes can take a couple of months to average how much you actually spend before you are able to get a fairly accurate budget in place. During this time, while you are collecting receipts and organizing files for your monthly bills, begin cutting back on unnecessary expenses. It is difficult to eliminate all luxury expenses at once, but if you can begin cutting back on small, unneeded purchases, you will find that your motivation will increase and your commitment to your budget will be strengthened.

Experts will suggest that you save your receipts for every single purchase. Every time you go grocery shopping, every time you stop at a coffee shop, every time you get an oil change for your car, every time you purchase a candy bar from a gas station, save the receipt and then later file these receipts into categories. You should have categories for groceries/household cleaning items, health and beauty, dining out, car repairs and maintenance, fuel for vehicles, insurance, clothing, and entertainment.

Once you collect your receipts over two month’s time, you will have a good average on what you spend on various things each month. People almost always discover that they spend more than they think they spend. By collecting receipts, keeping track of what you spend using credit cards, and how often you make unnecessary purchases, you will be able to discover how to cut back and what items you are buying that you can live without. Making purchases that are not needed is very easy to do when you have a credit card on hand and this can lead to you slowly going into a significant amount of debt.

Many people go into debt so slowly that they do not realize they are doing so. There are easy ways to justify credit card purchases of items that are not truly needed. You may see something on sale or on a clearance rack. If you do not have the money on hand and if it is not needed, you can remain on your budget by keeping your credit card in your wallet. The urge for immediate gratification will fade away and you will feel a renewed confidence as you continue to stick to the budget you have created.

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Article Source:
http://EzineArticles.com/?expert=Greg_M_Beaumont

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