Creating a budget is one of the best things you can do for your financial situation, regardless of your income or debt. Trying to manage your personal loan without a budget puts you in a position of vulnerability and confusion—you don’t always know where your money is going or how much of it is going there. If you find yourself afraid to check your bank account, having less money than you know you should, or are unsure of areas where you’re overspending, then creating a budget might be the answer.
The first step in budgeting is to divide your expenses into categories. It’s better to start off with broad categories, like “Food”, rather than categories like “Coffee”, “Fast Food”, “Groceries”, and “Dining Out”. Simple categories are easier to calculate and keep track of. If you have no idea how to go about making a budget, there are plenty of free resources online to help walk you through the process. Check out this link for some free budgeting apps that make keeping up with your budget simple and easy.
A budget is telling your money where to go instead of wondering where it went. Dave Ramsey