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REASONS WHY YOU SHOULD BUDGET
Do you have a hard time
making your money last every
month or week? Are you having a
hard time finding any sort of
pleasure in your life after you
are done paying your bills and
eating expenses? If this is the
case, you need to budget your
money better. Do you think you
don't earn enough to budget? You
are wrong! If you are looking to
save some money, all you need to
do is change your spending
habits and develop a
strong financial strategy.
Analyze where your money is going.
You will probably very surprised
that a big chunk of your
finances goes towards services
and goods that you really do not
need. For example, do you buy
coffee everyday? Multiple the
amount you spend/day on coffee
by 365....that's a lot of money!
You can change this spending
habit by making coffee in your
house instead of going to
Starbucks or Dunkin Donuts every
day.
Stop wasting money!
If you establish reasonable
spending limits for yourself,
and stick to them, you'll be
able to do much more with your
money without giving up daily
conveniences.
There are lots of reasons why you
will want to budget your money.
Below are some of the more
popular ones. You should also
read the article that details
mistakes to avoid when budgeting.
Control Debt
Fiscal irresponsibility
leads to extreme overspending,
resulting in less money being
saved and more
credit card debt.
The average American family had
over $2,400 in credit card debt.
Credit card interest rates
average around 18%. Do, if you
have a $6,000 balance with 18%
interest, you'll end up paying
more than $10,000 to pay off
your credit card making only the
minimum required payments. Use
our
credit card calculator to
determine how long it will take
you to pay off your credit cards
and how much money you will end
spending in interest when paying
the minimum every month.
The money spent on credit card
interest is money that can be
spent on something else.
Therefore, develop a budget that
will allow you to eliminate your
existing credit card debt and
prevent impulse spending.
Cheaper rates
Budgeting will result in your
becoming much more organized.
This will help you eliminate the
chances of being hit with late
payment penalties and fees. As a
result, your
credit score is also going
to improve. Therefore, the
interest rates you receive for
any type of home loan or auto
financing are going to be better
than rates you would receive
with bad credit. Having good
credit will also result in you
paying less for homeowners and
auto insurance.
Improve your relationship
One of the number one
reasons for divorce is money
issues. You and your spouse
should develop a budget
together; one that does not put
more constraints on either one
of you. Financial goals should
also be discussed. Doing all
this will not only help your
family avoid future stresses as
a result of money disputes, you
will be able to understand each
other's views on money and
spending.
Saving for retirement
One of the best ways of
getting ahead is to learn to
live within your means. By
putting a small portion of your
monthly budget towards savings,
you will be concurrently
building an emergency money fund
in case you or your spouse
looses their job or if someone
becomes ill or hurt and can not
work, as wells as a retirement
nest egg. Learn
more about saving.
In conclusion...
Financial security is the
most important result of
budgeting. You'll develop a
sense of financial freedom while
learning how to deal with the
unexpected financial surprises
life throws at you. You will
never reach your long-term goals
as long as you are not
budgeting!
Learn how to budget now!
**We also suggest you take the
money spending challenge!
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