Whenever someone tells you that you should be living to a budget, you may find yourself shuddering. The thing is, a budget is not a bad thing to live to. In fact, it’s the best way that you can keep your finances on the right track, so that you’re able to live your life and not just live to work to pay debts. It’s important to remember, though, that your budget is going to pull you in a million directions. You’ve got to think about your bills, your mortgage, your food, your social life and even your retirement. If you’re not able to prioritise your budget, you’re going to find yourself with far too much month left when the money runs out, and you’re not going to be able to balance everything that you should be balancing.

Personal finance should never be something that you put to one side, believing that you won’t have to worry about it. Everyone has to worry about it. You don’t necessarily go to work for fun (well, maybe you do), you go because your job pays you and that money helps you to live. You can visit Dove Law Firm for help if you already know you’re struggling when it comes to personal finances, but if you’re as yet in that position, there are things that you can do to manage your budget so that it works for you, and not the other way around. You should be working hard and having fun, knowing your savings and your retirement fund are all healthy. There is an order for your financial priorities, though and here it is:

Pennies Money

You Should…Live Within Your Means. It’s nice to have credit cards as an emergency, but if you’ve spent your monthly income and have nothing left, the credit card can look like an excellent fall back. Instead, live within the means that you have and learn to plan your money better. Spending less than you earn should absolutely be a priority for you.

You Should…Get Income Insurance. You need health, disability, home, contents, auto, homeowners and life insurance. What if you lose your job? What if you get in a car crash? What if you get sick? Prevention is better than cure, and more often than not you can get all those insurances covered with one provider.

You Should…Tackle Your Debt. Come up with a plan to pay your debts as fast as possible. Whether that’s by paying them off one by one and keeping all your debts at the minimum while you tackle the big ones makes no odds. You need to work on lessening your debt so that you can live freely in your finances.

You Should…Emergency Save. Savings accounts are one thing, but you should have a backup option in the form of an emergency savings account. This can cover you if you lose your job or get sick. It’s just a smart choice!

Once you’ve learned to prioritise your cash you can find financial freedom and live the life you want.


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