Face it, what determines how smoothly your life runs has much to do with how you handle your finances. Most won’t want to believe it but it’s true. It’s OK. In this article about personal loans for terrible credit we got your covered because budgeting for beginners is what we’ll explain to you here. It’s not at all hard to do once you have the mindset to do it.

The Financially Savvy Mindset

Everything is mindset and once you have that down, you’re golden. The mindset is something that must be developed. Here’s a good way to do it. On a piece of paper; make two columns. Make a list of wants and a list of needs. This should be comprised of both your weekly spending as well as bigger ticket items and luxuries as well as entertainment. Now, just to preface this before we go further. We aren’t trying to take away your wants. But, as you’l see you will actually be able to afford your wants much easier when you weed out some of the not so needed needs.

Once you’ve done the list really take a look at both sides and ask yourself what your most important needs are first. Needs are generally what you have to have to live–period. Food, clothes and shelter. Then make a shorter list of needs if you need to.

Then go to the wants section. This exercise is a little bit more intense. You should look at each of the wants and feel the emotion that you have when reading it. This will help you to decide whether you just can’t live without it. Then, eliminate all the ones you are indifferent about.

Crunch the Numbers

Now, take a candid look at your income and other funds that you have accessible. Then, take another piece of paper and if you can, approximate what you spend on things like groceries, clothes and entertainment. Make a short list of what you can cut out or reduce. Are there services you can do without? Can you buy a Netflix account for $7 a month and cut out the cable?

Look again at your wants especially if you are having issues with cutting out or reducing the needs. Determine two wants that you simply can’t live without and then crunch the numbers. What does it cost to get them or to maintain them or both. This will serve and dual purpose. To get you clear on what you need and to keep you on target. To learn more, visit DrCredit.