How to Choose the Right Hard Money Lender for You

In life, we’d like to think that very few words fill us with dread, yet one B-word can unsettle even those with the strongest resolves – budgeting. Let’s face it, even if you’re the most frugal of people; nobody likes having to make a plan for their money.

Often budgeting can leave a sour taste in people’s mouths as it comes with connotations of suppressing yourself financially and not being able to spend money on the things you want. However, this is far from the case; instead of stopping your monetary freedom, budgeting can help give you more flexibility with your finances through careful understanding and directing of where your money goes.

Fortunately, no matter whether you’re new to organizing your finances or have had trouble doing so in the past, there are various ways that you can keep your spending on track. From using helpful tools like a credit card minimum payment calculator to automating monthly payments, here are some essential budgeting tips to make money management a trouble-free experience.

Know Your Minimum Monthly Payment

Providing that you own a credit card (or several), it’s essential that you know your minimum monthly payment so that you can budget accurately. Even if you’re fortunate to pay off your monthly credit card bill in full each month, knowing your minimum payment can help you set a baseline amount. This helps to work out what needs to be accounted for should there not be enough funds in your account to pay the total balance.

Setting this baseline payment will prevent you from any repercussions like late fees or, worst-case scenario, late payment marks on your credit report. This happens should you forget to pay your monthly credit card bill or not have enough funds in your account to cover the repayment.

One of the ways you can do this is by understanding which credit card minimum payment calculator your card issuer uses so that you can determine why your minimum payment is the amount it is and what future payments might be.

To determine how your minimum payment is calculated, use Tally’s credit card minimum payment calculator and the other helpful resources on their website to get more advice. Consider visiting their website to learn more about their credit card payoff app or follow their blog for today’s latest advice and news about money management.

Make Allowances For Surprises

Although budgeting will make money management much more straightforward, there will be times when you cannot account for every single purchase you make. From the occasional impulse buy to unexpected expenses like a medical bill or house repairs, the scope for surprise payments is never eliminated.

Therefore, it is essential that you take precautions so that if you find yourself with a surprise bill, the financial shock is lessened. You can do this by setting aside a nominal amount of money each month to create an emergency fund or savings account to fall back on, preventing you from taking out a loan or credit card to cover the debt.

Automate Recurring Payments

Another budgeting tip to make money management easier is automating recurring payments. Thanks to the digital age we now live in, technology has made the act of budgeting easier by doing the process for you. As well as setting up automatic payments for monthly bills, you can set up automatic transfers into your savings account or emergency fund to contribute to them without even having to think about it.

Automating recurring payments is also helpful for tracking what you’re spending your money on. Nowadays, it’s so easy to set up a regular payment that we often forget what we’ve purchased and what we haven’t.

For instance, once you start automating your expenses, you might discover that you’re paying for multiple streaming platforms like Netflix, Amazon Prime, Hulu, etc., per month when you only use one. Following this discovery, you might decide to terminate your subscription to a couple since it’s not being used as much as you thought it would, which will save you money and help you track your spending further.

Prioritize Expenses

When trying to budget, it is essential to differentiate between your needs and wants, as what you want to spend money on may not always be something you need, which can quickly cause your budget to go out the window. Place a heightened focus on essentials such as transport, housing, utilities, and groceries, and have a reduced focus on shopping and recreational activities.

One of the best ways to do this is to adopt rules like the 50/30/20 budgeting rule, which suggests that you devote half of your income to your needs, then split the remaining amount between wants (30%) and savings (20%). Although before you can decide if an approach like this would work for you, it’s essential that you assess your needs first to see if it’s a feasible approach.

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