I know the feeling – you are always strapped for cash and looking for a personal loan to cover various expenses. How do you get ahead?! The answer is easy but the commitment is difficult:) The simple answer is – budget your money.

You can do it! A budget can be started with ANY amount of money! If you receive $100 per month, that is a starting point. There are many good sites on the internet which can help to create a budget. I will research a handful and list this on this page very soon, but I want to focus on the concept of a budget first. You must understand the purpose to a budget, create a budget and then commit to it.

Simply stated - a budget is used to manage your money. Many people receive money by whatever means but have very little idea where it goes. Ask a few friends what they spend their money on – this is not to judge them but just to see if they keep a record of where their money goes. Most of my friends could only mention the top expenses – rent, car, etc. What about the rest of the money? The top expenses may account for 60%-70% of your total income, but the remaining 30%-40% is unaccounted! The remaining unaccounted dollars represent a sizable amount of money which if used in an effective manner, can make all the difference when paying bills.

Accounting for all your expenses is a very important part of the budget process. It is okay to have discretionary spending providing you have accounted for this line item in your budget – discretionary spending is a bucket of money used to make unplanned purchases. Do not forget to include a line item for savings in your budget. Many people look to spend ALL their monthly income but do not account for savings. No amount is too small to save. If you have $100 per month and account for $95 going out the door in your budget, that leaves $5 for savings. Believe me, over time your savings will add up!

If you play your cards right, you will having people coming to you for a personal loan! Personal loans should only be used if absolutely necessary and a good budget will help to eliminate your need for one.