Priority Based Budgeting and What It Is

Priority Based Budgeting and What It Is

Priority Based Budgeting and What It Is

  • Educational
  • Finance

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We all could use a little extra money in our pockets, right? One way you can save money and keep your pockets (and bank account) full is with proper budgeting. Prioritized budgeting is a critical strategy that helps you manage your necessary expenditures—such as paying off credit cards, saving for retirement, and starting a college fund. If you need help prioritizing your budget, you've come to the right place. Today, we highlight tips to help you determine which expenses need your attention and which can wait a little longer. Keep reading to learn more about priority-based budgeting.

Put Retirement Saving First

Saving for retirement is crucial. And what's startling is that most people don't prioritize it. According to a 2022 survey, 23% of Americans don't have a retirement savings plan. Most people forgo saving for retirement because it seems far away, but it's best to start planning now. Saving now will ensure you have enough money to enjoy a comfortable life when you stop working. Trust us, the sooner you begin saving, the better. And you may be able to save for retirement through your employer's 401k plan.

Next, Pay Off High-Interest Debt

If you have credit card debt with a high-interest rate, paying it off should be a priority. According to recent data, the average interest rate is nearly 20%. This can add up quickly and prevent you from saving for anything other than debt payments.Start an Emergency Fund
After you've paid off your most bothersome debt and put money aside for retirement, it's time to start thinking about an emergency fund. This will help cover unexpected expenses like medical bills or job loss. There isn't a rule for how much you should have saved, but the most important thing is that you have something stashed aside.

Keep Funds for Expected Expenses

Someday your roof will leak. And your furnace will need a tune-up. These types of expenses aren't considered unexpected—they're inevitable. So it's wise to set aside a fund for expected expenditures like home and auto repairs. Also, consider downloading an expense tracker excel offers to help you keep track of your savings.

Cover Unexpected Costs with CreditBox

Sometimes life throws you a curve ball, and you may need extra cash to help despite your weekly budget efforts. Consider getting a personal installment loan when you are in a sticky situation. Our loan options allow you to access funding in just a few hours. Apply for an installment loan today and discover the benefits.
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