If you have tried making a budget but have never had any success then chances are you did not make an accurate budget.  Any budget that is not based in reality will never work.  If you were constantly breaking your budget then chances are you did not make an accurate budget.

Start by building a money diary.  Write down every penny that you spend all day.  This includes the postage stamp that you bought for that letter.  It is important that you write down absolutely everything.  If you did not do this before you have found why your first budget didn’t work.  The money diary needs to be done for everyone in the family.  If you give your children a weekly allowance than just write that down.

Do not do anything differently then you have been doing just make sure that you write everything down.  Doing this for at least two weeks will give you an accurate picture of where your money is going.  You might be surprised where some of your money is going.  I found that my wife and I were spending 20 to 30 dollars per week on gourmet coffee.  That was between 80 and 150 dollars per month.  We determined that we could use that money to reduce our debt.  We still treated ourselves to coffee but we only did that once a month.  We were putting 70 to 140 dollars a month to reducing our credit card debt.

We also found several other things that we were able to redirect our money to.  This helped us stay on track with our budget and hopefully can help you.  The money diary is a critical step in building a successful budget.  Reducing your debt and building your savings account should be your primary goals with the budget.  This will help you improve your credit and your credit score.  Good credit is very important in today’s economy so maintaining your budget and keeping on track is crucial.

During these tough economic times, many Americans have seen major downturns in their savings, their retirement accounts and cost of living.  So do you know where your money has gone?  Maybe it is time to check where your money is going.

The best way to do this is to start with your budget.  If you don’t use a budget maybe it is time to start.  Begin by making a money diary that will show your complete spending for at least two weeks.  It is better to do a money diary for one full month but two weeks will give you a pretty good understanding.  This money diary will help you know where your money is going.  Then you can build a budget that will help you pay all your bills, save a little money and maybe even have some fun.

Once you have your budget built then take the time to check out your debt.  Start with your revolving credit such as credit cards, department store cards and gasoline cards.  Most gasoline card require that you pay the balance in full at the end of the month.  But if you have a card that you carry a balance on make sure your balance due is at least 30% or below of your available credit.  If you have any card debt that is carrying more than 30% then you need to reduce that debt as quickly as possible.  Once your debt is below 30% your credit will begin to see improved credit scores.

Now you have a budget and you have reduced your revolving credit debt it is time to start building your savings or emergency fund.  You should have at least three to six months worth of living expenses in your fund.  If you have a two income family then your fund should reflect that amount.  No one expects you to have your fund overnight.  But you’ll want to build it up as quickly as you can.  Having this much money in savings will protect you from life’s little emergencies.

Finally, you should review your retirement account.  If you don’t have a retirement-plan then you should investigate getting one.  Many companies offer retirement plans and most will contribute those plans.  You’ll need to check out where your contributions are going.  If you had most of your contributions in the higher risk categories then you lost quite a bit of money recently.  Choosing a less risky option will take you longer to build a solid retirement account but odds are you won’t lose money as rapidly.

This will help you get on the right track financially.  Review your credit history report and dispute any inaccurate information.  Good credit is so vital in today’s economy so you should monitor your report at least once a year.  If you need additional help then look to hire a legitimate credit repair company.  Good credit repair companies will dispute as you instruct them to.  Good financial management begins with knowing where your money goes and maintaining good credit. 

I have been asked that question many, many times. I always answer that question with question. Do you pay your bills on time and in full? Do you have a budget and do you follow it? The answer I get back generally is no. Guess what, that is your problem.

Paying your bills on time and in full is how your creditors respond to the credit bureaus. If you make a late payment or only a partial payment, your creditor reports that to the credit bureaus. This information makes up 1/3 of your credit score. So if you start paying your bills on time and in full you will begin to improve 1/3 of your score right away. Late payments are reported from 24-48 months depending on the bureau. You might even be able to discuss with your creditors about re-aging your account. This means that you have to make so many payments on time (and in full) and if you keep that agreement, they will change the reporting to show that you have always paid on time. This will remove your late payments and immediately improve your credit score.

Setting up a budget is completely the cornerstone of good financial management. If you have planned on all of your expenses and found ways to cut them you are on the right path. In fact, finding ways to cut your expenses is essential in reducing your debt. Businesses are known for downsizing and cutting back. You need to think of your home as a business. By doing this, you will have the right attitude for saving money.

If you want to see your credit score rise, then follow those two tips. Your score will begin to rise. Review your credit history report and dispute any errors. That will help your score rise. If you have bad credit, then by following the first two tips, your score will start rising and all of your bad credit will drop off your credit within seven years. Most of the negative information reports for only seven years and each year counts less and less to your credit score. Good credit is within your grasp if you are willing to reach out and take it. If you need help in correcting your errors hire a professional. A legitimate Credit Repair Company can help you dispute those items that are reporting incorrectly. They will only dispute what you tell them that are reporting inaccurately. They will continue to dispute that item until you tell them to stop.

Don’t be afraid of having bad credit as it can be repaired. Dedication is necessary to make the changes you need to have good credit. Bad habits are hard to break but not impossible.  Take the time to dedicate yourself to having good credit and you will be surprised what you can do.