Where does the money go? Many persons work hard only to watch their hard earned money go up in smoke! It might seem as if it has disappeared but really the reason why your money goes so quickly is due to lack of a plan. A plan or budget is really the only way to ensure that you keep your money.
Why is making a budget so important?
Your budget is a road map for what you spend money on each month, so you can schedule payments for bills, credit cards and loans in advance which means on-time payments and no late fees!
A budget helps you to avoid living from pay cheque to pay cheque as you know exactly how you will survive because you have it all planned. No one likes that stressful feeling that comes before the end of the month when you don’t have very much money in your account.
By creating a personal budget, you have a projection of how much money you should be spending throughout the month so that you don’t have to panic while waiting for your next paycheck.
Do you understand your spending habits?
Many consumers are really unsure where their money has been spent so a budget will clear up this confusion. If you check to see how you are spending your money, you will be able to make necessary changes.
By figuring out where your money is going, you’ll be more aware of where you need to cut back to pay off your debt and contribute to savings. You might be surprised to find that the little things like buying fast food, watching movies and making impulse purchases really can add up over the course of a month.
So how do you design the perfect budget?
Designing the perfect budget means being smart about how you view money. As soon as you are paid, ensure that allocate the funds for every area of your life including paying all the bills. One thing to remember is that there is no one size fits all, the budgetary needs of a single mother with children will be significantly more than a single person with no responsibilities.
Are you putting money away for unexpected or unplanned expenses? Many people don’t plan for these eventualities and so when they arise they are left desperately trying to raise the money hey need.
However, if they had planned for a ‘rainy day’ then it would have been a lot less stress. It is this type of planning that is essential for the budget to be a success!
So what’s your take on the issue? Let me hear from you!
Teri Ann Renee Paisley
Gleaner online writer