While many Kentucky residents think that a monthly budget is a chore, the payoff is well worth it. The bottom line is, a budget ensures that you’ll be able to pay your bills every month without running out of money. If you lose track of how much you’re spending, it can have devastating financial consequences, including ultimately losing your car or home.

Even though it takes some work to set up, a budget really doesn’t take that much effort to maintain. While there might be a few definitions of what a budget actually is, here’s the basic definition. A budget is a tool that helps you organize your finances. It’s also serves as a two-fold plan.

First, it’s a plan that lists out your monthly expenses, and then disperses your income so that all of those expenses are covered. Second, it’s a plan that helps you save for the future. 

When trying to get out of debt, it’s important to adhere to a strict budget to make sure that your payments are being made every month. You can either make your own in an Excel spreadsheet, or use a budgeting app to make it easier and more convenient.

If you end up filing for a Chapter 13 bankruptcy, the trustee requires you to turn over an annual budget of all your household bills and expenses. This helps you keep track of your payments, and shows you how much money you need to allocate for each household need. Those needs include rent, utilities, groceries, car payments, and so on.

Having a budget is vital to a successful Kentucky bankruptcy discharge, which is why we gladly provide articles with free tips on how to budget your money. Your success is our success, and we want to see you complete your bankruptcy plan so that you can get a fresh start!