Why you should create a personal budget for 2014

2014 is just around the corner and money is one area which is always popular among New Year’s resolutions; whether that’s starting a savings account, saving more money, investing, managing debt, or just getting your finances in order. Taking control of your finances in any of these ways will benefit you greatly in the short run, and help you to develop good money habits which will stay with you long into the future. One fairly simple way you can start getting your finances in order for 2014 is with a personal budget…

There are a number of reasons why you might consider creating a personal budget for next year, but the main one is the extra clarity you will have over your financial incomings and outgoings. People get into debt by spending more money than they are earning, a personal budget will help you to clearly identify how much money you have available and how much money you need to cover your expenses, making managing and planning your finances much easier. Not only does it help you in the short-run, but it will also help you to make the best financial decisions throughout your life by making smarter choices with your money.

Thanks to the internet there is no shortage of free tools available to help you accurately calculate your budget. Most of the free budgeting tools you will find online provide a fairly comprehensive list of the typical expenses people have, this will help to make sure you don’t forget anything from your budget.

Once your personal budget is complete and you can see a clear picture of your current financial situation you might start to see things which you hadn’t realized before. For example you might realize that a huge chunk of your income is being spent on something which isn’t really essential, or that you could get a certain debt paid up more quickly if you cut back on your shopping habits for a few months. Just being able to see everything laid out clearly in front of you should give you a whole new perspective on your finances, and most importantly, it will make you feel like you are in control of your finances, and not the other way around!

Creating your first personal budget can be somewhat of a time consuming task, but hopefully you can see that the benefits certainly outweigh the time spent. If your financial situation is particularly messy then you may want to consider seeking help from a debt consolidation specialist. They can help you to minimize your monthly payments and provide a solid personal budget to make sure you get your finances back on track for good.

Author Bio: Nathan Rossiter is a regular contributor of money saving tips and debt advice. When he is not busy working with the team at DebtConsolidation.com.au he enjoys keeping up-to-date with the latest news from the world of Finance, and the occasional game of FIFA 2014!

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Alia provides help and advice for all sorts of financial problems, she recommends Crown Money Management for anybody looking for professional financial advice. When Ali is not blogging about finance related issues, you can find her snuggled up with a good book, or outside enjoying the summer weather.

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