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

New statue of Penn State's Paterno set for…

By David DeKokHARRISBURG, Pennsylvania (Reuters) - Fundraising for a new statue depicting Joe Paterno "as the man he was and not Joe the football coach"…

National

On newly released tape, 'Squeaky' Fromme says was…

Manson Family member Squeaky Fromme told a mental health examiner in newly released interview the "X" she carved in her forehead was meant to separate her from "the system."

Local

New York-based Century 21 store coming to The…

The former Strawbridge & Clothier building will once again host a department store. City officials on Thursday announced New York-based Century 21 Department Stores will…

National

Electric Zoo tickets on sale Tuesday as festival…

Electric Zoo tickets go on sale Tuesday. The festival announced plans to amp up security after two attendees died last year from apparent drug overdoses.

Movies

Tribeca: 'Goodbye to All That' star Paul Schneider…

Paul Schneider talks about his new film "Goodbye to All That," not acting too much and how he'd rather indulge in simple pleasures than play the scene.

The Word

Taylor Swift battles paparazzi daily at Tribeca penthouse

We're entranced by these photos of poor Taylor Swift leaving her Tribeca apartment.

Movies

Tribeca: Nikki Reed on going funny for a…

"Intramural" star Nikki Reed talks about being the straight person in a broad comedy, spending time in Austin and how "Thirteen" was a "miracle."

Movies

Interview: 'The Quiet Ones' star Sam Claflin on…

"Hunger Games" co-star Sam Claflin talks about his new horror film "The Quiet Ones," plus how technology connects him with fans.

MLB

The return of Cole Hamels brings optimism

Cole Hamels’ quality start Wednesday was a nice change of pace from his recent season debuts.

MLB

Tony Gwynn Jr. a nice surprise for Phillies

Tony Gwynn Jr. has been a plus in every way for the Phillies.

NFL

2014 NFL Mock Draft: Updated, new April 24…

2014 NFL Mock Draft: Updated, new April 24 version

MLB

5 infamous pitcher ejections for cheating

Never fear Yankees fans, Michael Pineda is far from the first MLB pitcher to be thrown out of a game for cheating.

Food

Hai Street Kitchen opening in Rittenhouse May 22

Japanese cuisine will get a Chipotle-style twist at Hai Street Kitchen & Co., a new casual, quick-food restaurant opening near Rittenhouse Square on May 22.…

Parenting

New study: Inside the wage gap between boys…

According to a new study, there's a wage gap between boys and girls, with boys earning more allowance for less chores.

Tech

From Apple TV to Fire TV, big changes…

Apple is set to launch a new generation of it's Apple TV, which grossed over $1 billion in 2013. But competition from Amazon and Google looms.

Style

Katy Perry releases a new Claire’s collection

Katy Perry expands her empire by releasing an accessories collection at Claire's.