Budgeting To Avoid Debt
Budgeting to avoid debt is a useful tool to pick up and stick to as a teenager as it allows more room for controlled spending (Something that we all enjoy doing!!). Below is a guide to writing a successful, effective budget that will allow you to start saving right away.
1.Acknowledge your expenses:
2.Determine your income:
3. Avoid impulse buying:
4. Keep a money diary and a wishlist
1.Acknowledge your expenses:
- Separate your expenses into two categories: Necessary and Unnecessary. Cut down on the unnecessary spending.
- Write down a list of everything you have bought in the past week
- Be reasonable while deciding what your expenses are. If your expenses vary week from week leave at least $20 lee way.
2.Determine your income:
- If you do not have a continuous amount of pay each week or month it makes budgeting hard. Establish the amount of money you will be able to supply each week to your budget, any extra can go into your piggy bank
- If you have a continuous amount of pay remove at least $20 to put into your savings account. If your income is low, determine ways you can increase you weekly allowance by reading the obtaining money section of this website.
3. Avoid impulse buying:
- Only carry a small amount of cash on you whilst shopping.
- Leave all credit and debit cards somewhere safe, away from you while shopping... Out of site, out of mind.
- Follow our tips to avoid impulse buying here
4. Keep a money diary and a wishlist
- Keeping a track record of all your spending will help you recognise your areas of weakness.
- Keep a wishlist of all the things you want- This means that you can ask friends and family for these items during Christmas and on your Birthday