To most, living by a budget is a life void of fun. It’s assumed to be lifestyle crunched with numbers trying to confine oneself to a restricting lifestyle. Done correctly, budgeting ought not to be that way, if anything; a budget should relieve all strain on your financial life.
As LaToya Irby from about.com puts it, living by a budget entails a lifestyle free of worries about having enough money to pay your bills. All your expenses are outlined in you budget. All you have to do is identify areas where you need to cut down on so that you can make ends meet.
Based on the fact that a budget is the answer to many of our everyday financial questions, how can one budget their way out of debt?
LaToya says, managing your finances without a budget is like travelling to an unfamiliar place without a map. You might get to your destination, though chances are you might get lost along the way. It’s the same way with managing your debts. You might successfully get out of debt without a budget, but how long will it take and at what cost?
A budget will tell you exactly how much you can afford to spend in order to get out of debt, plus help identify areas where squeeze more money from in order to settle your debt.
Once your debts are paid off your budget will help you manage your finances better so that you can avoid falling back into debt.