Controlling Your Finances: Part 2

As discussed earlier, budget is the key to keep you from borrowing money. However, there is no such thing as a perfect budget and there will always be a chance that for one reason or another you will not be able to follow your financial game plan. This is quite natural and the only thing to do is to recover. And how do you do this?

 

Recovering From Your Financial Mistakes

 

When you suddenly realized that you’ve got off-track from your budget, re-trace your steps and find out what expenditures placed you in the red. It is usually expense for unnecessary items that made you go overboard on your expense. For instance, a sudden urge to upgrade your mobile phone is usually a common cause for unwanted expenses. When credit cards are the ones used to purchase unnecessary products you don’t realize that you have already overspent. Your only recourse is to find a way to pay off this expense at the soonest possible time. Again you need to go back to your expenses to look money lender singapore review where you can get money to pay off the debt. If you have been religiously following your budget for a long time, I’m sure you already have a sizable amount of surplus where you can get the money but If this is not possible and cutting down on the expenses won’t help much either, your only recourse would be to amortize the balance of your credit card. Meantime, never use the credit card while making payment for the purchased product. If you own several credit cards, it would be best that you only bring one with you and make sure you bring the credit card with the smallest credit limit and carries the least interest rate.

 

Don’t Budget Alone

 

Controlling and managing your finances is never a one man job (except of course if you are single). If you have a family, make sure they are involved in the project. Remember that all of you spend and it’s the responsibility of each and every member of your family to strictly follow the rules when it comes to spending.