When you go to a dealership for a new or used vehicle, it can be a little stressful since you don't always know what to expect. There are many ways to prepare and one of the best ways is to have a stable budget planned and in action. At Auto Credit Express, we want to help you have the most power in your finances as you can. Below we have a few great methods to help you budget your income now and in the future. Read on to decide what method will work best for you.
4 Budgeting Methods that Make 'Cents'
- The Envelope System
This method is positively simple. Add up your total monthly expenses and subtract it from your income. Then you separate each expense into its own envelope and put the appropriate amount in each. Mark them with what the expense is and the cost. When your paycheck comes, you separate the cash for each expense in the envelopes. The rest of your check is for you to spend or save. The only difficult part of this method is that more and more people find it easier to pay instantly with their credit or debit cards, making it hard to follow spending.
- The 50/30/20 Rule
This rule helps show you what your budget should like if you plan on saving.
50: You should be spending no more than 50% of your take home pay on all the essential expenses in life.
30: No more than 30% of your income should be used on luxury things such as entertainment, games, shopping, cable or internet.
20: Put at least 20% of your income back into an investment or savings account.
- The Snowball Budget
This technique is great for those struggling with debt. You start by paying off your smallest debt first. You then apply that same payment you would make to the next highest debt's monthly payment. You continue this cycle until you're able to use large payments to pay off your higher debts and soon become debt free!
- Digital Budgeting
In today's world practically everything is digital, so of course your budget can be too. There are many different tools to use, and one of those tools is an online banking app. You can take a real time look at your account to make sure it matches with the budget that you've created. Other apps like Mint will keep track of your expenses and budget and alert you if you've spent too much in a certain area.
As We See It
Those who do monitor their finances diligently will tell you that budgeting does indeed save you money. So much even, that it may seem that you're making money! Having it on paper where you spend your money now can be an eye opening experience and show you just how much you may need to slim down your expenses. Once you do, you'll want to have a budget set up and follow it closely to build up your funds. Then you can complete our easy to finish application and be in contact with a dealer in your local area that can help you finance that car, truck or SUV you need. Apply today with Auto Credit Express and we'll help you find the security you need on the road.