If you’ve recently filed for bankruptcy in New Jersey, you may be concerned about rebuilding your finances once again. Creating a solid budget is crucial in this case, as it can help you cover recurring expenses while also putting money aside for the future. Because budgeting can be difficult for many people , Bankrate.com offers the following advice.
Know how much to save
It’s recommended that at least 20 percent of your income is put aside for savings. This money can be used as an emergency fund or it can help pay off lingering debt. Additionally, you should take this 20 percent out of your pay check before spending on other items. That way you’ll establish a habit of saving, which should occur every time you get paid without fail.
Track your spending
If you find it difficult to save, consider tracking your spending for a week or a month. This will show you any areas in need of improvement, as well as which expenses are crucial. The longer you track your spending the more insight you’ll receive regarding your finances and this information can be highly useful when creating a reliable budget going forward.
Categorize your spending
The money left over after putting savings away should be used very carefully. For instance, you want to ensure the majority of your spending is going towards necessities, such as food, items for your home, repairs and maintenance for your, and other important needs. If you find that you frequently spend money on a lot of unnecessary items these purchases should be curbed immediately. For instance, if you frequently spend money on eating out you should consider alternatives (such as having dinner at home).