| Imagine setting out on a cross-country car trip with | | | | 2: A Budget Helps You Prepare For Emergencies. |
| no itinerary, no maps, no money and no source of | | | | Eventually something big is going to beak and need |
| help. Jumping in the car, and heading across the | | | | replaced. It may be a $400 washing machine, or it |
| country with no direction and no planning may sound | | | | could be a $20,000 car. Are you ready for the |
| like fun (and it might be for awhile), but what | | | | inevitable? Budgets allow the user to see where their |
| happens at the first sign of trouble? Living without a | | | | money is going, and to help them better equip them |
| budget is a lot like that car trip. | | | | to both save for emergencies, and clearly see where |
| It may seem easy enough to buy what you want, | | | | changes can be made if an unexpected expense |
| when you want it, use credit cards to handle those | | | | comes up. When Bob was suddenly laid off from his |
| nuisance bills that come along very few months (like | | | | job, he and his wife Nancy had very little saved, but |
| car insurance, vehicle tags and registration and even | | | | they used their budget figures to immediately see |
| a prescription or two), but what do you do when | | | | what temporary cuts could be made to get them |
| something big hits? Would you find yourself in serious | | | | through a few lean months with very little stress and |
| financial trouble if your income suddenly changed due | | | | worry. |
| to layoffs or a career-change; the roof needs to be | | | | 3: A Budget Can Both Get You Out of Debt; and |
| replaced; or an unexpected baby arrived? | | | | Keep You Out Of Debt. |
| Spending plans, otherwise know as budgets, are just | | | | The average American household owes more than |
| that: a plan for how you handle your money, to | | | | $9,000 in credit card debt. That doesn't even begin |
| better prepare you for all of life's twists and turns. | | | | to account for the hundreds of thousands of dollars |
| Most people hate even the thought of budget. Why? | | | | we each carry in additional mortgages, car, and |
| Because they have been taught that a budget limits | | | | student loans debt. Owing money is an American |
| what they can have; what they can do; and what | | | | epidemic. It has even been cited as the #1 reason |
| they can spend. Smart financial planners know that | | | | for divorce in the United States. Creating a budget |
| the opposite is really true. A good budget can be | | | | the whole family can live with, will ease the burden of |
| used to set the stage for financial security, and gives | | | | debt on the American household by teaching |
| the freedom to spend money on honestly, anything. | | | | everyone in the household how to curb their |
| Imagine the next time that bi-annual car insurance bill | | | | overspending habits and live a more sensible, and |
| arrives in the mail: you open it, looked at the total | | | | stress-freeing financial life. |
| and reach for your checkbook, knowing that the | | | | 4: Budgets Teach Responsibility. |
| entire amount is there, just waiting to be paid. Whew! | | | | We see in every magazine, on every billboard, and in |
| Sound too easy? It doesn't have to be. Setting up, | | | | every commercial: you want it, you deserve it, go |
| and living by, a good budget can free you of the | | | | get it - no matter what the cost. The instant |
| stress and chaos of juggling paychecks and credit | | | | gratification of American credit has taken a severe |
| cards to meet the bills. It's a way for consumers to | | | | toll on our sense of responsibility. After all, we can |
| break free from the bondage of debt and have the | | | | buy now, and pay later, much later, so who needs to |
| money for the fun stuff , without the worry of how | | | | think responsibly? Unfortunately, those bills eventually |
| to pay for it later. | | | | come due, and many people aren't ready for them. |
| What else can a budget do for you? Here are 5 | | | | Budgets help reign in over spenders, and teach them |
| important benefits of budget-based living: | | | | real financial responsibility. |
| 1: Following A Realistic Budget Helps Free Up Cash | | | | 5: A Budget Eases Stress. |
| For The Fun Stuff. | | | | Money concerns are a top stress inducer in today's |
| Budgets aren't designed to deny the user from doing | | | | over indulgent society. It has been reported |
| or having the things that are important to them. | | | | however, that those who live by a budget |
| Budgets are an excellent tool to help stop wasting | | | | experience less stress in their daily lives. Surprisingly, |
| funds on little things that you don't need, but sure | | | | that was true for both minimum wage workers, as |
| can add up! For instance, one smart budgeter realized | | | | well as high-income workers. It didn't seem to matter |
| that if she just bought her favorite soda from the | | | | how much (or how little), income a household |
| grocery store and took it to work with her instead | | | | reported, the fact that they knew how to best |
| of buying it from the machine, she could pocket | | | | spend their money seemed to play a significant role |
| nearly $400.00 a year! She took that soda money | | | | in the stress they reported in their overall life. |
| and used it for a weekend at her favorite spa! | | | | Creating a budget may seem like an exercise in |
| Instead of denying her of her favorite soft drink, her | | | | futility to some, but the statistics are clear: budgets |
| budget simply alerted her to an unnecessary | | | | are good for you! What do you have to lose except |
| expense, which ultimately allowed her to use that | | | | for a little worry? Try one and see what unexpected |
| money for something she really wanted, yet didn't | | | | benefits you find yourself reaping. |
| think that she could afford. | | | | |