5 Practical Budgeting Tips That Really Work

Are you always broke? Or living from paycheck to paycheck? If your answer to any of these two questions is yes, then you are spending more than what you are earning.

To get out from this financial rut, you need to learn how to budget your hard-earned money effectively. Budgeting basically means planning how to spend your money with a purpose. It will help you get out from debt, save for your future, achieve your goals, and have financial freedom.

Here are 5 tips that can help you:

1. Before the next month begins, budget your money to zero

Create a monthly spending plan and give each dollar a name. Your plan should include basic expenditures, savings, and other miscellaneous expenses.

2. Each month is different, be sure to prepare for seasonal expenses

There are months that require you to stretch the budget. It is best to prepare for them by setting aside a specific fund for these expenses: School opening fees, vacation, birthday, holidays and car maintenance. By having a plan, you prevent being stressed when the time comes.

3. Create a schedule, stick to it

When budgeting, schedule specific dates to pay your expenses. Purchase your groceries twice a month or weekly.  For regular bills, set-up auto drafts in your checking account.

4. Give priority to essential expenses first, savings and your basic needs

Pay yourself first. Your foremost expense is your monthly regular savings, followed by the basic needs like shelter, food, utilities, transportation, and clothing. Then, fill up the rest of the categories.

5. Create a buffer in the budget, for unexpected expenses

Add a miscellaneous category in your monthly budget and assign a small amount of cash on it. Use it for unexpected expense that may come up within the month. It prevents you from utilizing the money that you set aside for other categories. Keep track of this extra expenditure and if it happens frequently, add a category solely for its purpose.

Give yourself at least three months to become familiar with your budgeting system. Once it becomes an auto-habit, you will enjoy the benefits of living with financial freedom.

Should You Get a Loan to Study Culinary?

A lot of people dream to run a kitchen or become the chief chef. Over the years, the culinary education has been sought after by a growing number of aspirants. The school enrollment is swelling while the starting wages of chefs are too low. It is hard to know if it is worth to get a loan and study culinary arts.

There are many ways to study the arts of cooking. The average cost of culinary school tuition is as much as three times the fees of a regular four-year course. A two-year degree in culinary or baking and pastry arts can cost up to $66,000.  If you want to extend to a four-year program, it could be as much as $130,000. This is almost the same as the law school degree.

However, unlike those who have careers in law, culinary industry do not offer much salary for a novice or newly grad levels. An entry-line cook can only earn as much as $10.23 an hour. From here, it seems that the high cost is not worth it.

On the other hand, you can attend community colleges and trade schools which have culinary programs. Students who take this route can complete the program and get a job in just a year. You can get a cash loan from a lending company to fund your culinary studies and start paying it after a year. As of date, 93% of student who graduated from programs that focused on practical skills are able to get a job in their chosen field.

You don’t need to get buried in a six figures debt to attend a culinary school. It is a responsibility nobody will have fun in fulfilling. Why not get the low interest personal loan online, one that you need and can realistically pay. Being practical should not start when you already have a job.