Having a debt can be really stressful. It is important that you pay off your debts as soon as possible so that you can have a clean slate and start anew. What you can do in order to help you pay for your debts is to budget your salary with money jars. This is a good idea if you are trying to save money, pay your bills and lessen your debt. Budgeting with money jars is quite easy.
Here are the steps on how you can budget with money jars:
- Set up jars. Set up the jars that you will use for the budgeting. Label them. One jar will be for your expenses, the other is for your debts and the last one will be the one that you will use for your savings. If you don’t have jars, you can just simply use envelopes for this.
- Make your budget. Now you have to set your budget. Write down the monthly salary that you get. Then, write down all the expenses for each month. This includes your groceries, rent, water, phone bill, etc. Then, also write down the total debts that you have. Writing all this information down will help you determine what percentage of your salary goes to each. Now, allocate your salary for each of the things that you just wrote down. Make sure to add a few extra bucks to make sure that it covers all your expenses. The amount of money left will be the amount that you can put inside your savings jar.
- Use the jars. Every month, use the jars and stick to your allocations. This will help you cover all your expenses and raise some money to pay off your debts. This will be helpful as you will also have savings while you are slowly paying off your debt. It is important that you stick to your budget for the expenses and the debt. This requires a lot of discipline. If you don’t have discipline, having these money jars is useless.
- Start paying debts. When paying debts, make sure to pay off the debts that have the highest interest first. As soon as you have enough money inside your debts jar, you can already pay off the first debt. This will be a great relief for you. Then, pay off all your debts until you have no more left. When you have no more debts left, you can increase the amount that you put in your savings jar or set up a new jar where you can allocate money that you spend on your wants.
These are some of the tips that you can use if you want to budget using money jars. This is easy to do as long as you have discipline. You will definitely be able to pay off your debts in no time. It is also advisable to deposit the amount of money inside the savings jar so that you can’t access it easily. This will make it easier for you to save.