by Brad Homer
Most people in our society today only loosely follow a budget and don’t save enough. The consequence is excessive borrowing to cover every unexpected occurrence and whim. By saving enough money to cover the unexpected and to pay for larger, planned expenses, you greatly improve your odds of living within a budget. When you successfully live on a budget, with it comes a sense of pride, accomplishment and control.
It’s important to focus on the positive aspects of saving money and living on a budget when you make this a serious goal. If you haven’t been very good at saving and budgeting up to this point, you will likely have some fear and loathing about finally becoming financially responsible. Most of this is fear of the unknown. The rest of the fear comes from the spender in you that thinks somehow you’ll have less money to spend once you start sticking to a budget. The reality is when you start saving money and living on a budget, you will have less money to spend, at first. But, as you build the habit of saving for purchases instead of using credit, and you reduce your debts, compound interest will start working for you rather than against you. Within a few short years you can find yourself happily saving, doing more and spending more than you could when credit cards and flying by the seat of your pants is how you ran your finances.
Most people don’t like the sound of having to be strict with their money. The word ‘budget’ carries a negative connotation for them. Most people also tend to be broke. You don’t have to follow the crowd over the cliff that leads to bankruptcy and despair. Make compound interest work for you (stop using your credit cards), save money and live – better than you ever have before - on a budget.
Millionaire 2020™ can help get you on the road to good budgeting.