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9 Simple Budgeting Tips To Stay Out Of Debt

Have you found yourself without cash for food and or fare? Well, it happens and it can all be traced to the doorstep of poor management of personal finances. In serious cases, you can't service your utility bills thus ending up in a debt spiral (i.e. when the debts exceed the income) or being declared bankrupt. 

Unless you learn some simple budgeting tips and how to manage personal finances, then your family breaking up is the least of your worries. Eventual loss of property can cause unmatched stress and lead to mental illnesses. Again, you can avoid major financial constraints by mastering the simple budgeting tips shared below.

Simple Budgeting Tips
Image courtesy of Stuart Milles at FreeDigitalPhotos.net 
Proper personal finance management demands that you answer certain questions and do so with utter honesty. In fact, if you don't answer some of these questions honestly then you are in a way inviting financial constraints. Here are sets of questions you should answer:

  • How much is your income?
  • What types of  loan(s) are you servicing?
  • What is the size of your family?
  • Are there members of your family with special needs?
  • What is your source(s) of income? and 
  • Just how secure is your source of income/job

Now that you know your source of income, the loan family needs let's delve into the financial management for both the employed and unemployed. 

Tips for the Employed

Your hard earned money is at stake here so you must really think while budgeting. Now, the temptation to indulge in impulse spending must be resisted at all cost otherwise these simple budgeting tips will not avail much. It is advisable you record personal income and expenses always. This will help when developing a budget. If you are employed then: 
  1. List your monthly expenditure on things like rent, food, clothes, electricity and transport. 
  2. Write down your monthly telephone bill, Internet costs, money spent on coffee, socializing and other luxuries.
  3. Develop a habit of saving e.g. by signing up for Direct Deposit so that the check is sent directly into your accounts
  4. Always set aside some money as emergency funds (a very helpful budgeting tip to new employees).
  5. Have long-term goals such as getting sufficient health cover, joining a retirement scheme and living a debt free life 
  6. Have a tax strategy to minimize tax deductions. Such strategies involve the use of tax calculator to determine the right tax deductions worth claiming and thus avoiding over taxation as well as under taxation.
Having a detailed list when budgeting helps in making adjustments and necessary cuts to save money for important expenses like mortgage and other loan payments. 

Simple Budgeting Tips
Image courtesy of Stuart Milles at FreeDigitalPhotos.net 
To guarantee a comfortable life (which is the ultimate goal of financial management), the cutbacks should not do away with fun and entertainment. It is also advisable to use the Internet for easier access to your banking statements in case an adjustment is necessary.

Tips for the Unemployed

Effective budgeting is not exclusive to the employed. In fact, the unemployed need these simple budgeting tips the most. Well, you may enjoyed the benefits of a regular income like people with gainful employment but that doesn't exempt you from paying your bills. You just need health and insurance covers as any other employed person does. Here are the financial tips to use if you don't have a reliable income:
  1. Take stock of your assets and the available cash.
  2. Review your monthly expenses and make the necessary cuts. Coming up with a good budget, even for the unemployed, demands a review of one's assets income vis-a-vi their income. Examples of areas to make such cuts include cable bill, Internet cost, telephone, non-essential foodstuffs and entertainment.
  3. Find some temporary job. Whether it is freelancing or resale of properties, that income is essential. 
Following these tips will always ensure that one lives a comfortable life even if they are on low income. Feel free to share more about this via the comment box. 


  1. Nice post! Everyone should really learn how to budget. People thought if they have less, they shouldn't budget it. Wrong!

    1. Caleb

      Thanks for visiting my blog.. I checked out the link too.. it is some interesting page you have there.


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