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