Personal Finance 101: Making A Budget Plan
June 21, 2021 | June Mckaig
Having a solid working budget is the first step towards financial stability. That’s personal finance 101. But how do you make a budget plan? It’s much easier than you may initially think. Having a working budget depends on following a few basic principles and taking your time to make a budget plan – like getting a title loan online for help.
Here’s How You Make A Budget Plan In 5 Easy Steps
1. Figure Out What You’re Working With
If you want to start making a budget plan, you have to know what you are working with. The first thing you need to do is figure out how much money you have. What is your NET income? It basically entails you figuring out the money you’re left with after all the taxes and deductions are taken out of your paycheck. That is a part of personal finance 101.
2. Figure Out What Your Expenses Are
Next up with personal finance 101 is spending. The next step to making a budget plan is to figure out how much you’re spending – and on what exactly. Which of those expenses are something you can’t mitigate? Which can you wriggle around a little?
Then start allocating money to each of the expenses. Start with the most important inflexible ones like rent, debt, utilities, and move towards more flexible ones like groceries, gas, and so on.
3. Figure Out Which Expenses You Need To Get Rid Of
Figure out which of your expenses shouldn’t be there at all. What is the deadweight sucking the money out of your paycheck without adding much to your life? Those things need to go!
It can be something simple like subscriptions and premium apps you seldom use to something more serious like a smoking habit since; remember, a heavy smoker spends up to $200 a month on the habit. Figure out what the expenses you can cut are – and cut down on them with no mercy!
4. Figure Out How Much You Can Comfortably Save
Saving should be your priority after necessary expenses. Ideally, you should be able to set aside at least 20% of your income for the saving goals. At first, start for a more short-term goal of an emergency fund, and then work towards a more long-term goal like retirement investments.
But if you can’t start setting aside 20% from the get-go – figure out how much you can and start. Starting saving is what’s important for making a budget plan and is definitely part of personal finance 101.
5. Continue To Change And Adjust The Budget
It isn’t just making a budget plan that matters; you have to keep up with that plan. Don’t get complacent even if you find a working budget. Always try to adjust bit by bit to make it better. Things like saving more, cutting down on more unnecessary spending, or incorporating expenses that could make your life better – like upgraded health or car insurance.
Another Personal Finance 101 Tip: Anticipate Emergencies
With a solid budget plan, you should already be at least half a step ahead of a future financial emergency. Unfortunately, however, sometimes large, unexpected expenses hit even those who diligently save a portion of their income every month and are devoted to building an emergency fund.
Sometimes, no matter what we do, we can’t save enough money fast enough before an emergency hits. Knowing that is also personal finance 101.
If you get hit by an unexpected expense when just starting, what you’ve got saved up might not be enough to cover your emergency. You might need some additional help to get you through the emergency.
You have two options here. You can either find additional sources of income or resort to debt. And while adding to your debt should never be your first choice of action, if your financial emergency is time-sensitive and could escalate if not dealt with soon, prioritizing a fast solution might be preferable to avoid additional expenses in the future.
Get A Title Loan Online For Emergency Expenses
In this case, you might want to look into getting a title loan online. Getting a title loan online means you use your vehicle’s title as collateral for a lump sum of money. The intended use of this cash is for emergencies like medical bills, home repairs, or late utility bills.
Fast Auto Loans, Inc. welcomes borrowers of all credit types; you can get approved even if your credit is nonexistent. We can also work with you if you are unemployed. Just come talk to us and we can go over any options you have available to you.
How To Get A Title Loan Online
To qualify for an online title loan at Fast Auto Loans, Inc., you need to be over 18, own a car outright, and be able to provide the following items:
- A valid state-issued photo ID or driver’s license;
- Your vehicle for inspection;
- That vehicle’s lien-free title in your name.
If you have all the required items, you can start the process by submitting an online form for title loans on the website. When the form will get processed – which should only take a few minutes – a loan representative from the nearest location will give you a call with further instructions.
You’ll need to take the required items to the meeting the representative sets up. The good thing is if you don’t want to meet at the store, you can ask the representative to set up the meeting at a different location.
Either way, they’ll have to inspect your car and documents to determine if you qualify for a loan, and what the terms should be.
If they approve you – the process could take as little as just 30 minutes – you’ll get the cash either the same day or the next bank business day at the latest. You could qualify for anything up to $15,000.
Get Started On Making Your Budget Plan, Today
Getting started on making your budget plan doesn’t have to be difficult. Hopefully, these tips give you a little more insight into personal finance 101. And if you need some extra help, turn to a title loan online from Fast Auto Loans, Inc. in Arizona. Fill out our online form when you are ready to get started.