{"id":24990,"date":"2019-10-04T13:32:16","date_gmt":"2019-10-04T18:32:16","guid":{"rendered":"https:\/\/www.avant.com\/blog\/?p=24986"},"modified":"2023-11-14T12:25:45","modified_gmt":"2023-11-14T17:25:45","slug":"achieve-financial-stability-with-a-budget","status":"publish","type":"post","link":"https:\/\/www.avant.com\/blog\/budget\/achieve-financial-stability-with-a-budget\/","title":{"rendered":"Achieve Financial Stability With A Budget"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Wondering where all of your money goes each month? If you\u2019re one of the nearly <\/span><a href=\"https:\/\/www.prnewswire.com\/news-releases\/fewer-americans-are-budgeting-in-2019----although-they-think-everyone-else-should-300824384.html\"><span style=\"font-weight: 400;\">30% of Americans who live without a monthly budget<\/span><\/a><span style=\"font-weight: 400;\">, then you\u2019re not alone. If you feel like you\u2019re living paycheck to paycheck or struggling to make any financial progress, it might be time to take an honest look at your finances. Creating a budget, intimidating as it may sound, is the first major step toward financial stability.<\/span><\/p>\n<h2><b>Start with a Small Step<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The key thing to know about budgeting is that you don\u2019t need to be a financial expert to come up with one. Simply put, a budget is a record of two things: your income and your expenses. Start by looking at what you spend and what you earn in a month.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most credit and debit cards provide spending summaries where you can see all of your expenses. You\u2019re going to come across a lot of different styles of budgeting, but all of them start with this basic step of looking at your transaction history. Once you can see where all your money is being spent, you can hopefully start to see where you may want to make some changes.<\/span><\/p>\n<h2><b>Knowledge Is Power<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When you take an honest look at your finances, you might be surprised by what you find. By putting your spending under scrutiny, you\u2019re forced to evaluate what your priorities are.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if you find that 30% of your monthly income is spent at restaurants and coffee shops but don\u2019t have any <a href=\"https:\/\/www.avant.com\/blog\/budget\/how-much-should-be-in-my-emergency-fund\/\">savings<\/a> set aside for an <\/span><span style=\"font-weight: 400;\">unexpected hospital bill<\/span><span style=\"font-weight: 400;\">, you might need to change your habits a little bit\u00a0 to build savings for emergencies. Being honest with yourself about your spending is uncomfortable for sure, but knowing what could be holding you back is a crucial part of <\/span><a href=\"https:\/\/www.avant.com\/blog\/how-to-master-the-art-of-saying-no-for-the-sake-of-your-budget\/\"><span style=\"font-weight: 400;\">breaking bad habits<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Go After Your Goals<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Budgeting is an important step toward achieving your goals, whether you\u2019re aiming to <\/span><a href=\"https:\/\/www.avant.com\/blog\/ways-to-pay-off-your-debt-faster\/\"><span style=\"font-weight: 400;\">pay off debt as quickly as possible<\/span><\/a><span style=\"font-weight: 400;\"> or save up for your next vacation. But if you\u2019re overwhelmed by debt or living paycheck to paycheck, it can be difficult to know what your goals actually are. If you don\u2019t know where to begin, try following a step-by-step financial plan, such as <\/span><a href=\"https:\/\/www.daveramsey.com\/dave-ramsey-7-baby-steps\"><span style=\"font-weight: 400;\">Dave Ramsey\u2019s 7 Baby Steps<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><b>Dave Ramsey\u2019s 7 Baby Steps<\/b><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">Save $1,000 for your starter emergency fund.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay off all debt (except your mortgage).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Save 3-6 months of expenses for a fully funded emergency fund.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Invest 15% of your monthly income in retirement.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Save for your child\u2019s college fund.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay off your home early.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Build wealth and give.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Other experts such as <\/span><a href=\"https:\/\/www.suzeorman.com\/start-here\"><span style=\"font-weight: 400;\">Suze Orman<\/span><\/a><span style=\"font-weight: 400;\"> offer different strategies to quickly pay off debt, raise your credit score, and build out a plan for spending and savings.<\/span><\/p>\n<p><b>Suze Orman 5 Step Action Plan<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pay Off Your Credit Card Debt<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Raise Your FICO Score<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Create a Spending Action Plan<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Create a Savings Action Plan<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Create a Retirement Action Plan<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">These are just two of many different ways to organize your finances. No matter what your bank account looks like, you\u2019re always in a good place to start making goals and planning your finances.<\/span><\/p>\n<h2><b>Know What You Can Spend<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When you\u2019re trying to save for a larger expenditure, budgeting can help you achieve the big picture that could otherwise seem out of reach. By calculating your monthly income and expenses, you can easily plan for larger purchases and spending goals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re looking to buy a car, a new laptop, or indulge in a vacation, making a budget will help you know just how much you have to put away each month to make the purchase. Even a large amount is manageable with the right amount of planning.<\/span><\/p>\n<h2><b>Give Yourself Peace of Mind<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Ultimately, creating a budget is a tool to help you get familiar with your own finances. Even when your situation may feel chaotic and unmanageable, budgeting is a simple way to help you create some stability and reduce money-related stress. Being in control of your finances brings peace of mind so that you can focus on the things you really care about. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wondering where all of your money goes each month? If you\u2019re one of the nearly 30% of Americans who live without a monthly budget, then you\u2019re not alone. If you feel like you\u2019re living paycheck to paycheck or struggling to make any financial progress, it might be time to take an honest look at your [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":24998,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"0","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"off","ocean_gallery_id":[],"footnotes":""},"categories":[1417],"tags":[],"class_list":["post-24990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Achieve Financial Stability With A Budget - The Avant Blog<\/title>\n<meta name=\"description\" content=\"You don\u2019t need to be a financial expert to come up with a budget. 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