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Although it requires commitment on your part; you can work out a way to budget when you’re already in debt.

Here’s how:

Track your spending

If you have more cash going out than coming in, then essentially you need to spend less and earn more. Take a look at what you’re earning versus your expenses, line by line. Once you have a handle on where your money is going you can set up a reasonable budget that will suit your lifestyle.

We recommend keeping track of your spending for about a month for a solid view of what your expenses are.

List all your expenses

Start by compiling a list of all your current expenses. Try and think ahead as far as possible for each month. This will help with situations where you must deal with additional expenses including birthdays, holidays, or emergencies. If you can include these in your budget, you’ll be able to plan accordingly.

1 + 1 =?

Do the math. Fill in what you want to spend on any additional costs and then add up all your expenses. From there minus total expenses from your “bring home” income.

Do you have anything left?

If not,

Cut back your spending

If you can’t afford to pay your bills, investigate could be seen as luxuries and what you could possible do without like:

  • Full DSTV package
  • Holidays
  • More than one cell phone contract
  • Eating out
  • Gym membership

Find ways to bring down your costs with the goal of having something left over every month. If your goal is to save whatever you can, then the best way to do this is to only spend on the things that are absolutely essential.

Conquer your debt

Whatever your focus is on, don’t risk your finances falling apart by ignoring your debt. Late fees and additional interest can turn a small debt into a devastating one. For more help and info on how to live with debt, Contact us, at Meerkat today!

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