Card Hub: Boston has the best budgeters

cash

According to a new report by Card Hub, Boston residents are the best in the nation when it comes to the budget balancing act.

More than half of all consumers do not maintain a budget, according to the National Foundation for Credit Counseling, and roughly 22 percent say they don’t even have a good idea of what they spend on things like housing, food, and entertainment. Card Hub’s inaugural Best & Worst Budgeters Study, ranks Boston as having the best budgeters based on the city’s debt-to-income ratios, bankruptcy and foreclosure rates, and relative cost of living.

According to Card Hub, the 10 cities with the best budgeters are:

1. Boston, MA
2. New York, NY
3. San Diego, CA
4. San Francisco, CA
5. Minneapolis, MN
6. Washington, DC
7. Los Angeles, CA
8. Baltimore, MD
9. Philadelphia, PA
10. Seattle, WA

The 10 cities with the worst budgeters:

21. Chicago, IL
22. Kansas City,MO
23. Pittsburgh, PA
24. Las Vegas, NV
25. Detroit, MI
26. Cleveland, OH
27. Atlanta, GA
28. Cincinnati, OH
29. Tampa, FL
30. Orlando, FL

For those struggling with their persona finances, the company also released these five tips for better budgeting:

Feed an Emergency Fund – Set aside a bit every month with the ultimate goal of having about a year’s after-tax income in reserve in case of an extended income disruption.

Rank Expenses in Order of Importance – Budgeting doesn’t mean you have to give up all hobbies or creature comforts. Rather, it simply necessitates cutting expenses that you’ve grown to view as necessities even though they’re truly luxuries that are dragging you down into debt. By ranking your expenses in order of importance, you’ll be able to keep the things you value most and avoid all the headaches that come with unnecessary debt.

Use the Island Approach – This entails separating your debt from your everyday expenses. That will enable you to amass the best combination of low rates and lucrative rewards possible, pay off what you owe faster, and realize immediately if you’re overspending (you should never get charged interest on your everyday account).

Treat Debt Payments Like a Snowball – In constructing your budget, make sure to account for monthly debt payments. When it comes to distributing those payments, you should pay the minimum on all but the balance with the highest interest rate, while attributing the rest of your monthly allotment to that more expensive debt. Do that until the first balance is gone, and then repeat until completely debt free.

Eliminate Temptation – We all have our spending temptations, whether it’s a high credit limit that we can’t resist exhausting each month or an Xbox that’s begging for some new games. Whatever the spending trigger is in your case, it’s important to eliminate it, even if that means taking drastic measures such as cutting up your credit cards in order to prevent use while continuing to benefit from monthly reporting to the major credit bureaus.

Follow Morgan Rousseau on Twitter: @MetroMorgan
Follow Metro Boston on Twitter: @MetroBOS


News
Entertainment
Sports
Lifestyle
National

Rubin 'Hurricane' Carter died Sunday from prostate cancer…

Former U.S. professional boxer Rubin "Hurricane" Carter, who spent 19 years in prison for murder and then was released after it was determined he did not get a fair trial,…

National

Florida man charged with murdering son to play…

A Florida man annoyed that his 16-month-old crying son was preventing him from playing video games suffocated the toddler, police said on Friday.

International

Powerful 7.2 magnitude earthquake rattles Mexico

A powerful earthquake struck Mexico Friday, shaking buildings and sending people running into the street, although there were no reports of major damage.

News

OMG! Exercise can make skin (and butt) look…

A moderate exercise regime can turn back time and actually reverse the skin's aging process, according to new research. The study showed that a minimum…

Television

'Orphan Black' recap: Episode 1, ‘Nature Under Constraint…

Welcome to your first Season 2 “Orphan Black” recap! Hopefully Tatiana Maslany can help Tatiana Maslany get through this, with the help of Tatiana Maslany,…

Entertainment

Whoopi Goldberg makes her debut as marijuana columnist

"It helps my head stop hurting, and with glaucoma your eyes ache, and she takes the ache out. It's wonderful," she said.

The Word

Kate Middleton made fun of Prince William's bald…

Kate Middleton and Prince William are in Sydney, Australia, right now, and it sounds like that brash Aussie sense of humor might be rubbing off.

The Word

Is Tom Cruise dating Laura Prepon?

"Mission: Impossible" star Cruise is said to be dating Laura Prepon, star of "Orange is the New Black."

MLB

Phillies notebook: Cole Hamels returns this week

The Phillies should receive a big boost when Cole Hamels returns during the Dodgers series.

MLB

Jimmy Rollins is key to Phillies success

When John Kruk was asked about what the Phillies need to contend for a playoff berth, the ESPN analyst said Jimmy Rollins needs to play like a MVP again.

MLB

Ben Revere lifts Phillies to avoid sweep

Ben Revere came through with a two-out RBI single against Atlanta’s tough lefthander Alex Wood.

NBA

Season wrap: 76ers make the grade

The 76ers opened the 2013-14 season with a victory over the Miami Heat. The Sixers closed the season with a win at Miami.

Parenting

Is camp right for introverts?

We ask an expert for tips on sending your introverted child to camp

Parenting

How to parent without gender stereotypes in a…

Christia Spears Brown, Phd. author of "Parenting beyond Pink & Blue" gives advice on raising kids free of gender stereotypes.

Tech

VIDEO: 'Vein-scanning' may become the future of paying

Designed to make transactions quicker and easier, the technology works by scanning the unique vein patterns in each person's palm.

Tech

#FollowFriday: 10 of the smartest Twitter accounts

Spending lots of time on Twitter? You might as well learn something. Here are some of the smartest accounts to follow.