Budgeting :How important is it?
May 12, 2007 10:00am CST
I was sitting down with my monthly commitments to creditors: trying to work out how much I will have left after having given most of my hardworking earnings to satisfy them. I realised that I have lost my way a few months ago, when I stopped budgeting in advance. The most important thing in keeping together and sane is to budget in advance(BIA)I was trying to do the opposite, yes, in arrear. this is a fatal mistake many people make. Some are not even budgeting at all. No wonder we have so many; almost, and some certain devorces, and strained marriages. 'Money makes the world go round' But Money also makes the marriage go straighter. It's true, wives are happier if there's more disposable money, to taste or to waste? Funny thing is, that I know all about budgeting, as a Financial Adviser, but like the builder, who never makes time to build his own dream home; because he's to busy doing it for others. I too am sometimes guilty of, 'not walking the walk.' You give advice to your clients who pay you for the advice. But then so many of them fail to follow through. And that is what causes our failures financially. So 'plan your buget and budget your plan,' and sure as you know you will not be damned. Have a happy marriage!
• United States
12 May 07
I make a budget every month,unfortunatley right now our bills are higher than our income. We are slowly digging our way out of debt. We went from two incomes to one and we are really struggling to stay afloat right now. Thanks for the tips.
• South Africa
14 May 07
Budgeting is a process of planning in advance: How to manage your disposable cash before you receive your pay- chek. If there are two incomes to your household, it is better for you to budget on the income of one, or on one and a half at most. Or budget to save at least 10% of your joint gross, not net, income. In that way you can put away a substantial amount into a savings account,(seperate from yor usual account)which will be able to sustain you in an emercgency-like now, where only one is working. That is called your "Emergency Fund." You may also put part of that money into Mutual Funds.