When it comes to financial health, debt itself isn\u2019t bad \u2014 taking out loans and other forms of credit actually builds your credit history and credibility with lenders. But unmanageable debt can be stressful. Using a budgeting app can lower the chances that you\u2019ll accidentally find yourself in too much debt to manage. It can also help you make smart choices if you choose to take on good debt in the future.<\/p>\n\n\n\n
Set Up Your Initial Budget<\/strong><\/p>\n\n\n\n First thing\u2019s first: Starting a basic budget is the key to avoiding unmanageable debt. Tracking your after-tax income and expenses gives you a sense of how much money you actually have and how much room you’ll have for new expenses. Quicken Starter Edition<\/a> automatically and safely imports purchases and deposits from your accounts, so you can easily see how much money is coming in and where it\u2019s spent.<\/p>\n\n\n\n Grow Your Emergency Fund<\/strong><\/p>\n\n\n\n Build room into your budget for emergency savings, especially if you\u2019re eyeing a big expense in the near future. \u201cA two-wage-earner family should have at least three months’ living expenses in an emergency savings account; a one-wage-earner family needs at least six months,\u201d says Sallie Mullins Thompson, a Certified Public Accountant based in New York. <\/p>\n\n\n\n Your emergency savings account should include all your expenses, not just the essentials, and the fund should grow as your expenses increase. Use the Quicken app<\/a> to connect your desktop Quicken Starter Edition<\/a> software with your mobile device and track your monthly savings until you\u2019ve built up your emergency fund to accommodate an anticipated new expense level. That way, an emergency won\u2019t put you into debt.<\/p>\n\n\n\n Budget to Stay in the Black<\/strong><\/p>\n\n\n\n Once you\u2019ve built your initial budget, use the app during your day to day to avoid accidental spending that could put you in debt. Following a budget closely means that you can use a credit card without going into debt, since you\u2019ll ensure you have enough money to pay it off in-full each month.<\/p>\n\n\n\n