Budgeting for Financial Planning | Pay off Debt & Save Money
Learn effective budgeting strategies to improve your credit score and save money on unnecessary spending. Achieve financial planning goals by paying off debt and managing your finances wisely.
FINANCE
OH REALLY!
Did you say you know where your money goes and you don't need it all written down to keep up with it? I challenge you to keep track of every penny you spend for one month and I do mean every single penny.
You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year, and multiply the result by 5 to represent 5 years.
That is how much you could have saved AND drawn interest on in just five years. That, my friend, is the very reason all of us need a budget.
If we can get control of the small expenses that really don't matter to the overall scheme of our lives, we can enjoy financial success.
The little things really do count. Cutting what you spend on lunch from fifty bucks a day to three hundred and fifty bucks every workday in a five-day work week saves $10 a week, $40 a month, $480 a year, and $2400 in five years plus interest.
See what I mean, it really IS the little things and you still eat lunch every day AND that was only one place to save money in your daily living without doing one thing you really need. There are a lot of places to cut expenses if you look for them.
Set some specific long-term and short-term goals. There are no wrong answers here. If it's important to you, then it's important period.
If you want to be able to make a down payment on a house, start a college fund for your kids, buy a sports car, take a vacation, or anything... then that is your goal and your reason to get a handle on your financial situation now.
Benefits Of a Budget
Avoid overspending
Awareness of spending habits
Ability to avoid debt
Help prepares for emergencies
Help prepares for retirement
Brings goals within reach
Conclusion
A budget is not only your spending plan, but it can also help your credit score increase massively as all your debts will be paid on time which will improve your payment history. Because a payment history plays a huge part in your credit score rating, by budgeting not to miss a payment will be the reason for your credit score jump.
Keep making healthy financial decisions!
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