A lot of people may not realize how budgeting is very important when it comes to their finances. Some do not even realize that they are living beyond their means until it is too late and they have no money left.
Being an adult means being responsible in all aspects of your life. Creating a budget is the start to becoming financially responsible. It is a powerful money management tool that organizes all expenses and income so that it will be easier to understand how one should control their spending and be able to save money. But how does one create a manageable budget?
Steps for creating a personal budget
Some are intimidated by making a budget as it seems like a daunting task but it will be beneficial for the long run. There is no perfect budgeting strategy but there are basic steps that you can follow.
- Gather all records of your sources of income. If you are a regular employee, organize all your paychecks. If you are a self-employed individual, record all avenues which bring in a steady cash flow.
- Track all your expenses. It is important to take note of all of recurring expenses such as monthly rent, electricity bills, water bills, and other payments that you frequently spend in a month.
- List your financial goals. For your budgeting to work, you need to have clear and concise goals. Ask yourself what is your reason in saving money and list what you want to achieve.
- Adjust your expenses. Now that you already have a goal in mind, the next step is to adjust your expenses in a way that would support that goal.
- Explore budgeting apps, tools, and software. There are numerous budgeting tools available that might be able to help you.
Budgeting Can Be An Exercise In Trial And Error
While this is certainly a helpful guide, it does not always mean that you will be able to find the suitable strategy for you the first time. You have to try and mix things up until you finally find what suits your lifestyle.
Using Bluebird Prepaid Cards for Budgeting
For some, the use of prepaid cards has become an alternative budgeting tool. Unlike credit and debit cards, a prepaid card has no chance to be overspent as you can only spend the amount that is available in the card. One of the popular prepaid cards on the market today is the Bluebird prepaid card. It almost has no fees which is very helpful for those who are looking to avoid too many charges and it has features such as:
- Direct deposit
- Bill pay
- No monthly fee
- No withdrawal fees at all MoneyPass ATMs
- Free money transfer to other Bluebird account holders
- Free top-ups at Walmart, via debit card, and Mobile Check Capture
Bluebird also has the Family Account where the main account holder can give cards to four family members and limit their spending, ATM access, and more. It is a valuable tool in teaching children how to budget their money. BlueBird also has the SetAside Account where you can put money away for any future needs. All of these features can be accessed through online or mobile banking.
The Downside of Bluebird
While Bluebird has some great features, it is still not a bank account. You don’t have the option to build credit history and money is not insured. Bluebird also still has some fees such as withdrawing from out-of-network ATMs. If you are looking for a better option, try considering Chime Debit Card.
What is Chime?
Chime is an online banking account which has similar features to Bluebird but with absolutely no fees whatsoever. With Chime, you also have the benefits of having a real checking account. One that you can access from anywhere and at any time. It also has an Automatic Savings feature where a percentage of your direct deposits are set aside for future use. Better yet, the Chime debit card is even more widely accepted since it is associated with Visa.
Interested in Chime? Read more about it by visiting their website at https://chime.com.
This page is for informational purposes only. Chime does not provide financial, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial, legal or accounting advice. You should consult your own financial, legal and accounting advisors before engaging in any transaction.