Why Should I Make A Budget?

You say you know where your money goes and you don’t need it all written down to keep up with it? I pose you this challenge. Keep track of every penny you spend for one month and I do mean every penny.

You will be shocked at what the itty-bitty expenses add up to. Take the sum you spent on just one unnecessary item for the month, multiply it by 12 for months in a year then multiply the result by 5 to represent 5 years.

The result is how much you could have possible saved AND drawn interest on in only five years. That, my friend, is the exact reason all of us need a budget.

If we can get control of the little expenses that really don’t have an impact to the big scheme of our lives, we can enjoy financial success.

The small things really do count. Cutting what you spend on dinner from five bucks a day to three bucks a day on every work day in a normal week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest.

See what I mean… it actually IS the little things and you still eat dinner everyday AND that was only one place to save money in your daily spendings without doing without one thing you really need. There are many places to cut expenses if you watch out for them.

Set some actual long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important - it's as simple as that.

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 Aruba… whatever… then make it your goal and the reason to get a handle on your financial situation now.