The majority of us associate budgeting with unpleasant thoughts of cutting back on leisure spending, however it isn’t anything that we need to be afraid of. The point of a budget is just to show us how much money we have coming in and how that money is being spent. While we’ve all been told at one point or another that we need to create a budget, we haven’t all been given options on the best way to do so. Below are listed a few reasons why using a budget spreadsheet to map out your budget can be a great way to get and keep yourself out of debt.
Remind Yourself of That Total
One of the biggest, and most obvious, advantages of using a spreadsheet to track your budgeting is that it will allow you to know the total amount of your debt. Typically, people don’t realize how far into debt they’ve gotten themselves until the number has grown to be large and intimidating. By using a spreadsheet to keep track of your total you are forcing yourself to face that number and be accountable. It will also be a great deterrent when you feel the need to slide that credit card just one more time.
Keep Track of Payments
Another perk of spreadsheets is that they can work as a calendar of sorts as well. With all the other bills we all have to keep track of every month you may find that you’ve just forgotten to make that minimum monthly payment once or twice (or more). By documenting everything on your spreadsheet you will be able to keep track of what is due to whom and on what date it needs paid. This will keep those payments in the forefront of your mind and give you a better chance to get them paid.
When creating the spreadsheet list your debts in order of highest interest rate to lowest. Add up all of the minimum payments and document it so that you can stay aware of the minimum amount you need to pay towards your credit cards monthly.
Be Aware of What you Have Left
Once you have utilized the spreadsheet fully it is going to let you see the total that you bring in monthly, what funds are going out to bills and other necessities, and exactly what you have leftover. If you’re honest with yourself while creating your spreadsheet then you’re apt to see that you are spending some money frivolously. Using a spreadsheet wisely will help you cut out the unnecessary expenses, while still leaving yourself some spending money each month.
Using a spreadsheet to budget to get and keep yourself out of debt can be very effective. However, you must be willing to put in the work, be honest with yourself, and look at the spreadsheet often. If you’re ready to make the necessary sacrifices to get yourself out of debt then a spreadsheet is an excellent tool to help you do so.
If you find yourself struggling with debt or would like to find out about becoming debt free, call Debthelper at 800-920-2262, or visit @ www.debthelper.com.
