STEP 1: Get out from bad debts.

For you to be able to focus on budgeting your income, you need to prioritize first in getting yourself out from all the bad debts. Bad debts are those things that stopping you to fully maximize your savings.

Some examples of it are:

1. Credit Card Loan
2. Car Loan
3. Study Loan
4. Debt from a family member or from someone.
5. Installment payment from anything you purchase

This may sound so easy but getting out from it will give you a sense of freedom to work on with your next financial goal. The more you have debts on hand, the more you’ll live on a “check to check basis”.

Once you have a job, you can simply prioritize settling your debts first. This also means that once you’re done with it, inhibit yourself on having a new debt again.

STEP 2: Know your priorities.

Knowing your priorities will give you a clear vision of what will be your next step. The more your plans are ready to be executed, the more time you’ll save.

Ask yourself these following questions:

1. What do I need to do first?
2. Is my salary can support this goal?
3. What will be my timeline in achieving this goal?

In deciding your priorities, one thing that you also need to consider is your own future. You need to plan for yourself as well even you’re a bread winner. The more you can manage to aim for your family and own goals, the better it will be for you in the long run.

STEP 3: Make a timeline for each priority.

A timeline is very essential in planning your goals. It will not only give you a set time but it will also put a good pressure on you to really work on what you aim. In doing a timeline of your goals, you need to do first the following:

1. Categorized your goals into short up to long term goals.
2. Upon knowing your priorities, decide what period you’ll be able to achieve it.
3. Make a goal tracker so you can input any necessary actions that you need to do and the result of it.
4. Update every now and then so you can also check your progress.

Here’s a sample timeline to give a simple idea on what it looks like.

As you can see, this table consist of the period, goal, necessary actions and results that can be updated from time to time. It’s also categorized to financial, career and relationship goals that you can also change based on what you want to prioritize.

STEP 4: Build your own funds.

Having less income won’t stop you in readying your own fund. The more you divide your money based on your priorities, the less likely it will be spent in your expenses.

Build a fund for each priority and divide your income in those savings. This will help you to reach your target rather than pooling everything in one fund. By also doing this, you’ll be able to properly manage and track the total amount you’d gained since your money is properly segregated.

Here are some sample funds that you can consider on having.

Just take note that it’s better to have your savings in different trusted banks rather than putting all in in the same bank. This will help you to ensure that the rest of your money will be safe if there’s any challenges that that company encountered.

STEP 5: Stick to your budget.

No matter how hard it will be, push yourself that you’ll stick to your budget. Even if there will be emergency expenses that will happen, make it sure you’ll be able to still save even a little.

One important thing also to consider is your capability to say “No” in any request not unless it’s very important. Not because you’re a bread winner, you need to shoulder every responsibility that will arise in your family. You need to be very wise in terms of your spending.

There’s no problem with giving, but at least secure yourself as well.

STEP 6: Track your cash in and cash out.

In dealing with your money, it is very important to consider having a tracker, why?

1. It will give you a guide on where your money goes.
2. It can be a basis for your next budget.
3. You’ll be able to review your expenses and adjust your spending accordingly.
4. It will provide you a detailed information about your cash in and out.
5. It will help you to manage well your finances.

You don’t need to be an accountant for you to have your own finance tracker, a simple note in your notebook will do. You also have an option to use different pdf formats available in the internet so you can just easily print it out and use it right away.

Here’s a sample format that you can use!

STEP 7: Make sure that your income is growing.

Relying in your salary for a long run is not really ideal. You may never know what will happen in the future and chances of being unemployed will always be there.

Now if you’re just starting, you can first do the stated steps above before you can focus on finding another stream of income. The more you work on these steps the more you feel secured in any challenges that will come to your whole family.

To give you some idea, you can simply check my blog about the passive income I’m considering.

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