Budgeting—for most, the word means late nights, confusing numbers and lack of progress.  However, ‘budgeting’ is just another word for planning.  Next time you think of budgeting, picture yourself paying cash for a well-deserved vacation, helping your kids through college and living a comfortable retirement. Achieving these and other goals is possible; it’s not about how much you earn but what you do with what you earn.  

While the process of budgeting may seem difficult and time consuming, it is vital to gaining control of your finances as well as reaching your financial goals. 
One of the guidelines the experts at Consumer Credit Counseling Service (CCCS) use in advising people on "what to do with their money" is a formula:  70+20+10. Translated, that means of your net income, no more than 70 percent should go towards living expenses. These expenses are for such items as house payment, food, utilities, etc. No more than 20 percent of your income should go to your creditors. These credit payments would include vehicle payments and credit card payments. The remaining 10 percent of your income should go towards savings, investments and to cover emergency expenses. If you follow this 70+20+10 formula, you will be practicing sound financial money management.

Unfortunately, fewer and fewer people’s budgets fit within these guidelines.  In recent years debt has increased dramatically and the percentage of families spending more than 40 percent of their income on debt has increased significantly. If your budget it out of balance, start now to reduce your debt.

If you want a partner to help accomplish your goal of reducing debt, contact CCCS.  Over the past 46 years, we have helped hundreds of thousands of people repay millions of dollars.  During your confidential appointment with a trained counselor, you will develop a strategy based on your unique circumstances.  Your counselor may even be able to negotiate a repayment plan with your creditors to reduce interest rates and stop collection efforts.