Why Should I Make a Budget?
Have you ever reached the end of the month and wondered where all your money went? Sure it’s easy to keep track of the big items like your mortgage, car payments or insurance. But it’s the little stuff that slowly drains your bank account. Just like a slow leak in a tire, you may not notice until it’s too late.Here’s a challenge. Keep track of every penny you spend for at least one month…every cent. You’d be surprised at how much those tiny things add up. Now, take the total from just one non-essential expense for the month and multiply it by 12. Multiply that number by five. That is how much you could have saved and been paid interest on over five years. Shocking isn’t it?
A personal budget can help get a handle on those small leaks in your bank account. Those little things that sneak up on you. But a budget can also help with long term goals. It can help make sure you stay on track with your saving for college or even a down payment on a home.
If you start tracking and planning with a personal budget you’ll find lots of places to cut expenses and be able to plan for the bigger things that really matter.