Why Budgeting Is The Key to Saving

By Brandi Savitt – August 11, 2011

Top Sites To Help Manage Your Money

If you’re NOT the type of person who needs to make their bed every morning to have a good day, or methodically stick to the scheduled plan to keep your sanity – creating and sticking to a budget may feel a bit intimidating – no matter how much you make.  After all, are you really ready to face your bare naked financial reality?  Trick question – because the answer is YES!

No matter how scary the moment of truth may be, AWARENESS IS POWER, and learning how you spend your money is the key to saving and building a solid financial future.  So what if you’ve never done a proper budget for you or your family!  So what if you don’t yet have a system to manage your cash flow!  There’s no time like the present – which is why we have a few simple Fab & Fru tips and online tools to help you take charge of your financial well being.

5 Reasons to Create a Budget – No Matter Your Income

  1. Keep Your Wallet Honest - If you don’t really know the bottom line number you need each month to live on, and you don’t keep track of what you’re charging on your credit card each week, you are taking a very serious financial risk.  Even if you make a comfortable living, be honest with yourself about your spending habits, and take the time to do a proper budget so you can make sure you’re not spending more than you actually have – before it’s too late!
  2. Spend Less Than You Make - Once you’ve determined the minimum dollar amount you need to live on each month,  you can start to build up your savings.  After you pay your bills, decide how much you can afford to sock away, and then – and only then – can you spend the rest freely.  Remember– the only way to start saving is to spend less than your earn!
  3. Make More Informed Spending Decisions – Having a budget helps guide you to make better short and long term financial decisions. From spending habits, reducing debt, to investing, going through the exercise of budgeting will not only make your more aware of your habits, it will motivate you to become more responsible with your hard earned cash!
  4. Create a Master Plan - In the grand scheme of your financial well being, not only does your budget help you plan today, it is the key to helping you plan your future.  Whether we like it or not, many of the decisions we make in life are determined by our financial situation.  Our monthly budget should reflect our changing needs and expenses.  If you are working towards buying a home, changing careers, saving for our kids education, taking your next vacation, or planning when to retire, your budget is the key tool to help you know when you’re ready!
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