Why Should I Make A Budget?

You think you know where your money goes and it's not necessary to write it all down to be aware of it? I pose you this challenge. Watch every penny you spend for one month and I certainly mean every single one.

You will be baffled at what the itty-bitty spendings add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply that number by 5 to represent 5 years.

That is how much you could have possible saved AND drawn interest on in just five years. That, my friend, is the exact reason all of us need a budget.

If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success.

The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 each month… $480 in a whole year… $2400 in five years….plus interest.

Look, what I mean… it actually IS the little things and you still have lunch everyday AND that was only one place to save money in your daily living without doing without one thing you really need. There are many places to cut expenses if you watch out for them.

Set some actual long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important - it's as simple as that.

If you want to be able to make a down payment on a house, collect a college fund for your kids, buy a sports car, take a vacation to Aruba… whatever… then take it as your goal and your reason to get a handle on your financial situation today.