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A Budget Doesn’t Limit You, It Gives You Freedom
By: James Dimmitt
Mention the “b” word, as in BUDGET, to a friend and they’ll look at you like you
have a third eye growing from the middle of your forehead. For most people the
word budget too often carries negative meanings such as limits, restrictions,
living on an allowance, giving things up, no shopping, no fun.
Unfortunately, the point they’re missing is that a budget doesn’t limit you but
instead gives you freedom. That’s right - FREEDOM. The words “budget” and
“freedom” are not mutually exclusive, once you understand what a budget can do
for you.
Having and using a budget will give you direction. Your budget is your personal
map of how you’re going to move financially from “point A” to “point B” and so
on. Would you like to pay off your credit card debt? Buy a new house or car?
Save for retirement? If you answered yes to any of these questions, then let me
ask you one more - how are you going to do it? What’s your plan?
Let’s take a look at paying off your credit card debt. You’ve decided to lower
your debt by adding an extra $20 to your monthly payments. Great idea - as long
as you can afford it and you stop using your credit cards. However, you won’t
know if you have the extra $20 if you don’t know what your monthly expenses are
from the start. With a budget you may find that you can actually afford more and
pay off your debts faster. You’ll have the freedom to use your money more wisely
and achieve your goal.
What about buying a new house or car? If you don’t have a budget, you won’t know
how much you can pay for a house or a car payment. Make that mistake and you’ll
get a visit from the repo man or you’ll find yourself in foreclosure. Your
budget gives you the freedom to make an informed decision.
How about saving for retirement? Unfortunately most of us don’t consider
retirement savings until we’re into our forties or even fifties. Imagine if only
we’d been smarter, had a budget, and started contributing toward our retirement
when we were 10, 20, or 30 years younger?
Having a budget doesn’t limit you. It gives you the freedom to make informed
financial decisions, allows you to use your money more wisely, and achieve your
financial goals more quickly and easily.
Copyright 2005, http://www.yourfreecreditreportnow.com
About the Author:
James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help
you manage your personal finances. Subscribe today and receive his e-book
“IDENTITY THEFT- How To Avoid Becoming the Next Victim!” and other bonuses by
visiting
http://www.yourfreecreditreportnow.com |
