Saturday, October 10, 2009

Should i really make a budget??

Most of us claim we know where and how we spend our money, and asuch why should we bother to go through the discipline writting down how we spend it in other to keep track of it? Will you be willing to take this little challenge for a month and keep track of every dime you spend? Yes every penny you spend.
I bet you will be shocked at what those tiny ,semingly insignificant bit will add up to.Well. Look closely at just one of those expense you had never paid attention to, whatever the total is in a month,multiply it by 12 representing the 12 calender months in a year, then multipy the result by 3 representing 3 years. What did you get?
The answer you got is how much you could have saved AND drawn interest on in just threeyears. That, my dear, is the very incentive 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 victory.

Truth is,the little expenses really do count reducing what you pay out on lunch from six dollars a day to four dollars a day on every work day in a five day work week saves $10 a week� $40 a month� $480 a year� $2400 in five years�.Plus interest.

Did you get the message?�those little expenses do really counts for much in the long run. Did you observe we only focus on one area we need to cut down on our spending? There are a lot of places to cut expenses if you look for them.  

This may not be the easiest thing to do. But we really do need to set 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 to bahamas anything� then that is your goal and your reason to get a handle on your financial situation now.

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