What is a Budget? Why Should We Have One?
One of the most critical ingredients to any successful financial plan is a budget. To achieve our short term and long term financial goals, we must have a good understanding and control of our sources of income as well as our expenses and personal spending habits.
Budget: an estimate of income and a plan for domestic expenditure of an individual or a family, often over a short period, such as a month or a week (World English Dictionary). Simply put, a budget is A plan for spending and saving money based on one’s personal goals during a given time period related to income and expenses.
Maintaining a budget allows individuals to track their spending. By doing so, individuals (or families) can reduce their expenses to avoid going over budget. Therefore, maintaining a budget also allows individuals to identify places where he/she can cut expenses in order to reach short-term and long-term goals.
Ask Yourself These Questions about Your Budget Planning:
- Do you really know where the money from your paycheck goes?
- Have you ever wondered what happened to your money when you come up short in paying some bills?
Are you living Paycheck to Paycheck or know someone who is ??? Then check out our Report about stopping that cycle of Living Paycheck to Paycheck, once and for all times.