Date Posted: 11/21/2012 11:39:31 PM
Posted By: fly1234 Membership Level: Bronze Total Points: 15
When your family is growing , soon you will realize that the most important thing to you is your overall financial success. Don''t be a slave of your budget, don''t let it rule you. Now, keeping this in mind, you will need to work together with your partner to ensure your overall success is achieved.Be aware of your income and billsThere are two things that are interlaced to determine what you earn and what you spend out of your earnings. First thing, before you can draw a budget you have to be able to determine how much income you have and how much of that income is going to pay your bills. Your goals also will determine how you set a budget. For example, when you are aspiring to buy a mansion, you need to sit down, make the necessary adjustments to your bills and then determine what you are going to save. There are some bills that are just not necessary. If you dine out regularly, lets say twice a week, then you should plan of having that meal prepared in your house instead so that you save on the restaurant bills. Your cable TV is also a luxury that you can''t afford at this time. You may switch to cheaper entertainment options such as Netflix. And you don''t have to move to an uptown apartment just because your salary has increased. A large portion of our income normally goes towards rent, servicing the car and other monthly utilities. When you move to that expensive estate, you are bound to increase your spending. There is also the desire of wanting to buy another car, just like your neighbors so that you can keep the pace with the trend around you. At the end of the day, your banks account is running dry leaving you with nothing to save.Living Within Your Budget If you have a budget, it is important to understand that it''s you who is controlling your finances. You are not restricted by your debt, but rather, you are taking charge of how you will pay them off. Once you manage to pay off your debt, then that will free up space in your budget. When you have done this you can either throw that extra money in your budget toward resettling other debts to pay them off faster or you can simply stay on the course that you are on and use that extra money toward something different. Living within a budget takes discipline and patience. It also takes a lot of sacrifice, and it will get you being responsible for every penny that you have coming in and every penny that you have going out. Living within your budget is like a train following the railway line because it takes you being willing to plan and designate where all of your money is going. This may sound like an impossibility, but once you get it in place, it becomes your second nature. When you understand how to live within your budget, you will know how to spend, when to spend and where to spend.
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