ClearPoint Credit Counseling Experts Explain Budgets

Getting control of your finances can be as simple as writing it down, advise the experts at ClearPoint Financial Solutions, a certified consumer credit counseling service. A budget begins with identifying and listing monthly income and expenses, and it instantly shows people how money flows in and out of their daily lives. A carefully-planned and realistic budget is like a road map, the credit counselors at ClearPoint Financial Solutions say. Without it you're driving around lost; the map ensures you reach your destination safely and on time.

Consumer credit counseling services were created for this very purpose-to help consumers understand their personal finances, identify short and long-term financial goals, and structure budgets to help them reach those goals. Bona fide consumer credit counseling service agencies like ClearPoint Financial Solutions agree that financial success begins with creating a budget.

Getting Started

• Don't wait until next January! A budget can be created any time of the year using the previous month's income and expenses as a starting point. Make sure to adjust your numbers for seasonal spending (school clothing in August, heating bills in December and January) and any bonuses (tax refund in April) when planning out your income and expenses for the rest of the year.
• Expenses fall into two categories. Examples of fixed expenses include a mortgage or car payment (the amount doesn't change) while variable expenses include utility bills or groceries. Tracking and adjusting those variable expenses are what gives a budget its flexibility and power.
• Once established, a budget should be revisited at least once a month to ensure staying on track. Also, categories may need to be adjusted as expenses and income change.

Common Budgeting Mistakes

• Using too much cash: ATM withdrawals are easy to lose track of. Our credit counselors advise relying on debit cards and checks, as they leave a paper trail.
• Being too strict: It can be tempting to try to eliminate as many expenses as possible. The enthusiasm to save money is a good impulse, but an overly strict budget is usually doomed to failure, warn our credit counseling advisors. It's okay to budget a modest amount for a hobby, service or activity that boosts your well-being.
• Spending the extras: Unexpected windfalls or raises are fun to spend, but they should go into a savings account and help you reach your long-term financial goals that much more quickly.

If you are struggling with that delicate balance between income and spending, a nonprofit consumer credit counseling service like ClearPoint Credit Counseling Solutions is an unbiased source of expertise. ClearPoint credit counselors are trained to help people identify their financial goals, then establish a personalized and realistic budget that the whole family can live with. A ClearPoint credit counseling expert can often find ways to put money aside for savings. If you are struggling with debt, ClearPoint consultants can even help consolidate bills into one convenient payment and negotiate lower interest rates with creditors.

A personalized financial consultation is where all consumer credit counseling services begin. With just a pencil and paper, you and your counselor can create a personalized financial road map that will ensure you reach your goals safely, and on time.