Budgets, ooh the dreaded word. Often when people hear the word budget, they automatically panic. Be not afraid my friends, for a budget is only created for your benefit.
I can understand why many people would run at the thought of budgeting, but the sooner you get it over with the happier you will be. When you create a budget, you are setting limitations on your daily/weekly/monthly spending habits and this is the key to living within your means.
The reason why I chose budgets today, is because I was in fact looking over my own. Actually, I was pretty sad and disappointed when I saw the amount I had to spend this week. I will even show you what I have, and I'm not embarrassed of it - after all I am a poor college student.
Now, to most people $1,200 is living on bare bones. I'll agree with that statement, because that is also how it feels to me. I am used to working 60-80 hours a week, and making a very good paycheck but now that I've decided to go back to school .. I am living on the bare minimum to say the least.
However don't fret, because living on a budget does not mean that you have to live the way I am living now. When you live on a budget, you are living within your means instead of exceeding the limits far beyond what you can afford. Many people these days live from $1,000 to $4,000 outside of their means.
Think about if you were spending $4,000 extra than you had in the bank. You would be going into debt at the rate for $48,000 dollars a year and if you keep on that track for 5 years you will be 1/4 of a million dollars in debt ... to the tune of $240,000 to be exact.
Is it really worth it to live an extravagant lifestyle, when you really cannot afford it? When you begin to live on a budget, you are really just making an excellent choice for your future. Being on a budget does not mean that you have to go without, it just means that you need to think about you needs before your wants. Only purchase items when you can afford to, and if you can do without something for a while .. then its probably best for you to do so and your bank account will thank you for it.
So when you have a spare moment, because everybody does. Sit down and write out your monthly income, the debts you owe, fixed and variable expenses. Why not call the cable company, and ask for a better rate? Decide whether or not you really need that leather couch set from the Brick, or if the one you have now will do.
All in all a budget will help, not hinder .. but its up to you to decide your fate. Would you like to have $200,000 in your savings account, or wrapped up in debt? Just something to think about!
-Lisa
I can understand why many people would run at the thought of budgeting, but the sooner you get it over with the happier you will be. When you create a budget, you are setting limitations on your daily/weekly/monthly spending habits and this is the key to living within your means.
The reason why I chose budgets today, is because I was in fact looking over my own. Actually, I was pretty sad and disappointed when I saw the amount I had to spend this week. I will even show you what I have, and I'm not embarrassed of it - after all I am a poor college student.
- $675 for Rent
- $100 for Debt Repayment
- $80 for Cellphone
- $104 for Subway Tokens
- $120 for Groceries
- $20 for Clothing
- $20 for Toiletries
Now, to most people $1,200 is living on bare bones. I'll agree with that statement, because that is also how it feels to me. I am used to working 60-80 hours a week, and making a very good paycheck but now that I've decided to go back to school .. I am living on the bare minimum to say the least.
However don't fret, because living on a budget does not mean that you have to live the way I am living now. When you live on a budget, you are living within your means instead of exceeding the limits far beyond what you can afford. Many people these days live from $1,000 to $4,000 outside of their means.
Think about if you were spending $4,000 extra than you had in the bank. You would be going into debt at the rate for $48,000 dollars a year and if you keep on that track for 5 years you will be 1/4 of a million dollars in debt ... to the tune of $240,000 to be exact.
Is it really worth it to live an extravagant lifestyle, when you really cannot afford it? When you begin to live on a budget, you are really just making an excellent choice for your future. Being on a budget does not mean that you have to go without, it just means that you need to think about you needs before your wants. Only purchase items when you can afford to, and if you can do without something for a while .. then its probably best for you to do so and your bank account will thank you for it.
So when you have a spare moment, because everybody does. Sit down and write out your monthly income, the debts you owe, fixed and variable expenses. Why not call the cable company, and ask for a better rate? Decide whether or not you really need that leather couch set from the Brick, or if the one you have now will do.
All in all a budget will help, not hinder .. but its up to you to decide your fate. Would you like to have $200,000 in your savings account, or wrapped up in debt? Just something to think about!
-Lisa
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