The availability of easy credit has helped to make us the largest debtor nation in the world. We constantly spend what we don’t have and the result is putting many of us one or two paychecks away from losing our home. Budgeting is not taught in many schools – but it should be. It can make the difference between living a good life and living a life of misery and deep in debt.
We budget for a number of good reasons. But,the main reason we set budgets are so we are able to pay for our necessities and still live and enjoy a reasonably comfortable life. This means that if we’re making $32,000 a year, we don’t buy a million dollar home. Instead, we find a more suitably priced home in the nicest neighborhood that we can afford. If we are barely making enough to feed our family we don’t splurge on a 56 inch flat screen plasma television. We conserve our money and buy a more modest TV.
No one likes to budget. But unless we are independently wealthy through inheritance, the lottery, hard work, or some other means – we are going to have to learn to take control of our money if you want to achieve any of your financial goals and dreams.
The main purpose of a budget is to keep you from spending too much money on things that you don’t need. It can be so tempting when watching those late night infomercials and you see the Atomic Weed Destroyer that will kill all of the weeds from your garden with a single push of a button. You whip out your wallet, call the 800 number, and order it for the low, low payment of $19.95 a month for 3 months. A budget, if you follow it, will make you think twice before picking up that phone. Or maybe you go into a grocery store planning to spend $60 but instead come out with a $100 grocery bill. A budget, if you follow it, will make you stop and think before adding that extra item to the grocery cart.
A budget will let you finally take control of your financial life, if you use it.
Please see our website for more information regarding budgets and topics such as chapter 13 bankruptcy explained, bankruptcy and credit report, and buying a new car after bankruptcy.