Budgeting is the most basic and the most effective tool for managing your money. This take practice, and the ability to manage your money is critical regardless of your financial situation. But in hard times it even more important. Yet, most people avoid doing it because many people thing it connotes that you have to give up and stop yourself from enjoying stuff.... Have you people saying, "Enjoy your life while you still alive." I agree with that only if you do that without sacrificing your financial future. Retirement is not a matter of if, but it is a matter of when. IT WILL HAPPEN!!! What budgeting actually does is clearly show you how you allocate your money and help you choose on what stuff to enjoy – based on your financial situation. It will save you the grief of overspending and being too much in debt. Budgeting does not stop you from enjoying your life, it ensures that you enjoy your life when you want it. Although budgeting is indeed more work, it pays off with many LIFE-WONDERS, and here are the seven wonders of Budgeting: 1. It gives you control over your money – A budget is a way of being intentional about how you are going to spend and save your money. With budgeting, you assign your dollars to work for you instead of you working for your dollars. Budgeting saves you the stress of suddenly having to adjust to lack of funds because you did not initially plan how to spend them. It also helps you decide if you want to sacrifice short term spending like buying coffee everyday in exchange for a long term benefit like a cruise vacation or a new golf clubs. 2. It helps you aware of what is going on with your money. You are clear on what money is coming in, how fast it goes out, and where it is going to. Budgeting saves you from wondering every end of the month where your money went. A budget enables you to know what you can afford, take advantage of buying and investing opportunities, and plan how to lower your debt. It also tells you what is important to you based on how you allocate your funds, how your money is working for you, and how far you are towards reaching your financial goals. 3. It keeps you focused on your financial goals – You avoid spending unnecessary items and services that do not contribute to attaining your financial goals. If you are working with limited resources, budgeting makes it easier to make ends meet. 4 It enables you to save for expected and unexpected costs – such as planning for emergency funds or rainy-day fund. 5. It helps you decide in advance how your money will work for you. 6. It helps organize your spending and savings – By dividing your money into categories of expenditures and savings. It also helps you aware of which category of expenditure takes which portion of your money. That way, it is easy for you to make adjustments. In addition, it serves as a reference for organizing your bills, receipts, and financial statements. When all of your financial transactions are organized for tax time or creditor questions, you save time and effort. 7. Helps you determine if you can take debt and how much – Taking debt is not necessarily a bad thing if the debt is necessary or you can afford it. Budgeting shows you how much a debt load you can realistically take without being stressed or if taking the debt load is worth it. If you need a sample of a comprehensive budget sheet, please feel welcome to contact me.

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