Money Management

Budgeting: Getting out of Debt And Tracking Expenses

If the word budget makes you cringe, you’re reading the right
article. Old-style personal financial advice equates budgeting
with constant expense tracking, deep cost-cutting (mostly of all
the fun stuff), and a lot of math. It sounds boring and
frustrating, and no one (including me) wants to do it.
The truth is that budgeting doesn’t mean sacrifice; it means
choice. A budget is a plan for your money that will let you take
control of your finances so that you can have all of the things
that you want, whatever they are. You can gear your budget
toward the life you want, whether that includes ironclad
financial security, the freedom to ditch your job and travel the
world, or resources to buy your dream house and start a family.
Budgeting is about designing a road map to financial
security and prosperity. Sometimes that path includes cutting
back on expenses (especially the ones that aren’t bringing you
any benefits); other times it creates space for major life
changes (like buying a house). It’s a way to tap into your
resources wisely and transform them into future wealth.

More than all of that, it’s a way to take the anxiety out of
money management: instead of stressing over every bill that
comes in, for example, you’ll already have figured out exactly
how to pay it. You’ll have a plan for eliminating the debt that’s
been keeping you up at night. You won’t have to worry about
whether or not you’ll have enough money to fund your
retirement. That financial confidence will help you overcome
the challenges that have been keeping you from getting ahead
and accumulating a healthy nest egg.
To get to the financial destination you want, though, you
need to know where you’re starting from. You’ll use that
information to set a course that will help you reach your goals.
Your budget will act as the GPS, giving you directions and rerouting you when detours pops up so you can get wherever you want to go.

Most people have the wrong idea about budgets. They think
they’re all about eating no-brand ramen noodles in the dark to
save money and keeping endlessly detailed records of every
penny spent. The real point of a budget is to make sure you’re
never in a position where ramen noodles are all you can afford
to eat or you’re praying your power doesn’t get shut off
because you couldn’t pay the bill.
In this chapter, we’ll expose budgeting myths, take a look at
budget reality, and reveal the best way to make this
personalized money plan work for you. With this powerful tool,
you’ll be able to build wealth, meet and exceed your goals, and
be ready whenever unexpected financial setbacks occur.

Budgeting 101: From Getting Out of Debt and Tracking Expenses to Setting Financial Goals and Building Your Savings, Your Essential Guide to Budgeting

Originally posted 2022-04-11 13:30:28.

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