Personal Finance Budgeting - Five Reasons Why Budgets Are Needed
Related Questions
Need to find out some important Finance related Courses to improve my Knowledge.Can any body suggest
How many hours of sleep does a person need ?
Mr.Webster, I am personal assistant, I have a current passport and ready to go anywhere needed. My job qualifications and military back ground are extensive. Please contact me jerrydemi@gmail.com
I need to contact a real person in order to ask then if i can get a copy of my account information
Imagine setting out on a cross-country car trip with no itinerary, no maps, no money and no source of help. Jumping in the car, and heading across the country with no direction and no planning may sound like fun (and it might be for awhile), but what happens at the first sign of trouble? Living without a budget is a lot like that car trip.
It may seem easy enough to buy what you want, when you want it, use credit cards to handle those nuisance bills that come along very few months (like car insurance, vehicle tags and registration and even a prescription or two), but what do you do when something big hits? Would you find yourself in serious financial trouble if your income suddenly changed due to layoffs or a career-change; the roof needs to be replaced; or an unexpected baby arrived?
Spending plans, otherwise know as budgets, are just that: a plan for how you handle your money, to better prepare you for all of life's twists and turns. Most people hate even the thought of budget. Why? Because they have been taught that a budget limits what they can have; what they can do; and what they can spend. Smart financial planners know that the opposite is really true. A good budget can be used to set the stage for financial security, and gives the freedom to spend money on honestly, anything.
Imagine the next time that bi-annual car insurance bill arrives in the mail: you open it, looked at the total and reach for your checkbook, knowing that the entire amount is there, just waiting to be paid. Whew! Sound too easy? It doesn't have to be. Setting up, and living by, a good budget can free you of the stress and chaos of juggling paychecks and credit cards to meet the bills. It's a way for consumers to break free from the bondage of debt and have the money for the fun stuff , without the worry of how to pay for it later.
What else can a budget do for you? Here are 5 important benefits of budget-based living:
1: Following A Realistic Budget Helps Free Up Cash For The Fun Stuff.
Budgets aren't designed to deny the user from doing or having the things that are important to them. Budgets are an excellent tool to help stop wasting funds on little things that you don't need, but sure can add up! For instance, one smart budgeter realized that if she just bought her favorite soda from the grocery store and took it to work with her instead of buying it from the machine, she could pocket nearly $400.00 a year! She took that soda money and used it for a weekend at her favorite spa! Instead of denying her of her favorite soft drink, her budget simply alerted her to an unnecessary expense, which ultimately allowed her to use that money for something she really wanted, yet didn't think that she could afford.
2: A Budget Helps You Prepare For Emergencies.
Eventually something big is going to beak and need replaced. It may be a $400 washing machine, or it could be a $20,000 car. Are you ready for the inevitable? Budgets allow the user to see where their money is going, and to help them better equip them to both save for emergencies, and clearly see where changes can be made if an unexpected expense comes up. When Bob was suddenly laid off from his job, he and his wife Nancy had very little saved, but they used their budget figures to immediately see what temporary cuts could be made to get them through a few lean months with very little stress and worry.
3: A Budget Can Both Get You Out of Debt; and Keep You Out Of Debt.
The average American household owes more than $9,000 in credit card debt. That doesn't even begin to account for the hundreds of thousands of dollars we each carry in additional mortgages, car, and student loans debt. Owing money is an American epidemic. It has even been cited as the #1 reason for divorce in the United States. Creating a budget the whole family can live with, will ease the burden of debt on the American household by teaching everyone in the household how to curb their overspending habits and live a more sensible, and stress-freeing financial life.
4: Budgets Teach Responsibility.
We see in every magazine, on every billboard, and in every commercial: you want it, you deserve it, go get it - no matter what the cost. The instant gratification of American credit has taken a severe toll on our sense of responsibility. After all, we can buy now, and pay later, much later, so who needs to think responsibly? Unfortunately, those bills eventually come due, and many people aren't ready for them. Budgets help reign in over spenders, and teach them real financial responsibility.
5: A Budget Eases Stress.
Money concerns are a top stress inducer in today's over indulgent society. It has been reported however, that those who live by a budget experience less stress in their daily lives. Surprisingly, that was true for both minimum wage workers, as well as high-income workers. It didn't seem to matter how much (or how little), income a household reported, the fact that they knew how to best spend their money seemed to play a significant role in the stress they reported in their overall life.
Creating a budget may seem like an exercise in futility to some, but the statistics are clear: budgets are good for you! What do you have to lose except for a little worry? Try one and see what unexpected benefits you find yourself reaping.
(ArticlesBase SC #150537)
How Pay Credit Card Debt
The ladies of TMI talk about saving money and paying down that credit debt. From curbing your shopping addiction to web applications to track your spending. (04:29)
Top Ten Personal Budgeting Tips
Learn the Personal Budgeting secrets to always be financially ahead. Budgeting to win. (03:50)
How To Develop A Budget
In this video, Mr. Barnett reviews some important aspects on managing your money in college, like how to develop a budget (01:04)
The Importance of Budgeting
David John Marotta explains the importance of budgeting. (02:08)
How to Create a 2009 Budget
Don't be scared off by our use of the "B-word." Creating a spending plan - that's our preferred term! - is a key step to successful money management and I (Daria here) am going to take you through setting up a simple, do-able method. In five easy steps, you'll have a clearer picture of your finances and a better grasp on where your money is going. I'll also share tips to staying on track and avoiding over-spending. (03:18)
Socially Responsible Investing (SRI) goes by many names including Green, Sustainable, Clean Tech, and High-Impact Investing. It is not a separate asset class, but an overlay of selected criteria. This article is an introduction to SRI, delivered with zest and humor.
Company finances online generally refer to business owners using the Internet to track and access financial information.
Fifty years ago, the average worker didn't need to worry about saving for his retirement. If he stayed with the same company for 20, 25 or 30 years, he was guaranteed a pension.
Everyone spends his or her money differently. While one person may find eating out a necessity, another prefers to put a little extra aside for faraway vacations. How you ultimately spend your paycheck is up to you.
Budgeting isn't rocket science. But, it does take some preparation, consideration and a healthy dose of reality, combined with a willingness to change some unhealthy spending habits.
Whether we want to admit it, or not, the money we have (or don't have), has the tendency to run our lives. It controls where we live; the job we have; the friends we choose; and may even control whether or not we feel happy and content.
Discover ten things you should look for in real estate investment software to be sure you get a superior quality program at an affordable price.
When choosing a renewable system for your home or commercial property, you'll have the chance to not only help tackle climate change, but also to save money on your heating bills.
Instant same day loans are thought of only when we need money at a short notice. The most convenient path is through the online process. You are just required to duly fill in the application form which should carry all your necessary details and before you know it, your credit is sanctioned to you in no time.
Are you in need of money immediately but you have failed to get one from all the options you can think of? You might be needing cash now because of an unexpected illness or you are missing work due to ...
Payday loans provide a convenient way of obtaining some cash that would fill in your monetary needs for various kinds of emergencies, ranging from the payment of your child's tuition fees to the payment of your rent. Payday loans are a wonderful consideration to make whenever you need some extra money as the procedures for obtaining these loans are quick and easy
We never know when there might be a sudden need of money for unforeseen medical expenses, business or other personal reasons. If you do have funds but they are in the form of inflexible structured payments, you can look forward to selling your structured payments. Read on to know more.
zero down loans Subprime mortgages provide much more flexibility with down payments than conventional home loans. And with a subprime home loan, you don't have to worry about paying private home loan insurance. Zero-Down Mortgages Zero-down mortgages allow people with little money for initial expenses to purchase a home. However, there are financing plans that wrap mortgage expenses into the home loan. The fundamental ze...
A Debt Settlement Net Branch is really the most powerfulway to generate a large residual earnings within the financial debt business. Primarily, debt settlement is the procedure of negotiating with lenders to reduce overall money owed in exchange for a lump sum payment. A productive agreement takes place when the lender agrees to forgive a percent of total account balance. Only unprotected money owed not guara...
Can it get worse or have we seen the bottom?
For whatever reason - you've bought a brand new motorcycle. Your wife says it has to go or you've just outgrown it - it's time to get your motorcycle out of the garage and sell it to someone who will enjoy its splendor once again.
Living with food allergies isn't as hard as it used to be.
You know how they make you feel (runny nose, itchy eyes, tired and cranky), but what are allergies? An allergy is your immune system's reaction to certain plants, animals, and even foods. When your immune system confuses something in your environment (the allergen) with a bacteria or virus that could make you sick, it attacks!
While the most common way to begin your rose garden is certainly with plants that are about two years old and are already well on their way to flowering, it is also very possible to start a rose garden from seed.
Choosing the right helmet depends a great deal on your own personal taste. Here is a brief rundown of each major helmet style to help you in making your best decision.
Many of us think of a beautiful garden as an almost unattainable goal, and certainly, a rose garden seems even more intimidating. Rose gardening has earned a reputation as being very difficult, a task only the most ambitious gardener with plenty of time on her hands would undertake. In reality, however, rose gardening just takes a little planning, a bit of maintenance and some patience.
The term organic seems to be everywhere these days, from the vegetables in the produce aisle to the cereal we eat in the morning.
Buying the right kind (and the right amount) of motorcycle insurance can appear complicated - but it doesn't have to be! When shopping for insurance, there are three main types of policies to be considered: Liability: Liability insurance is the least expensive policy you can buy, and for good reason. It's basically designed to protect the other guy and his bike - not you or yours.
Add new Comment
