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#FAMILY BUDGET CALENDAR HOW TO#
#FAMILY BUDGET CALENDAR TV#

Encourages you to become invested in your own finances: Simply put, the process of budgeting instills individuals with the discipline and motivation to manage their finances more efficiently and responsibly.Can prepare you for a rainy day: The fact so many Americans live paycheck to paycheck, and so few have an emergency fund, cries out for the need for more households to build a cushion they can turn to the next time the car breaks down, the home plumbing springs a leak, or, in a worst case scenario, you lose your job or health insurance.A budge is also a way of helping you anticipate expenses like car expenses, utilities, or phone bills.

#FAMILY BUDGET CALENDAR TV#

A budget is a way of forcing you to make sacrifices – be it cutting back on lattes at Starbucks or restaurant meals, scaling back expensive vacations, settling for a cheaper cable TV package, or holding onto that aging car for a few more years.

#FAMILY BUDGET CALENDAR HOW TO#

A budget plays a valuable role in determining how much of your income you need to save each month to reach those goals and how to allocate that money accordingly.

Helps achieve short and long term goals: Say you want to save money for a down payment on a car next year or a home in five years, or that you want to make sure you can spend your golden years in comfort by building up your retirement nest egg.

A basic principle of budgeting is making sure your monthly spending does not exceed your disposable income.

Simple and effective way of managing or avoiding debt: The reason millions of Americans find themselves weighed down with hefty interest payments on credit card accounts is that they simply spend more each month than they bring in, and hence they are unable to pay off their card balances.

Here are just a few of the reasons that creating a household budget is a wise decision, regardless of your financial circumstances: But just as it’s difficult to shed pounds when you don’t know how many calories you’re consuming, it’s equally difficult to cut the fat out of your spending and whip your finances into shape without a budget to shine a light on where your money is currently going. Stagnant incomes, growing debt burdens and rising housing and medical costs are among the reasons so many Americans have looked to tighten their financial belts in recent years, regardless of what the GDP and employment figures say. And with economic fortunes changing rapidly, that number is only likely to grow.

Why Budgeting Is ImportantĮven as the national economy was enjoying one of its longest-ever periods of growth in 2018, a survey by Bankrate showed that nearly two-thirds of Americans were limiting their spending each month. Is it any wonder then that more Americans are turning to budgeting in their search for financial bliss? And while a budget won’t be able to buy you love, to paraphrase The Beatles, a side benefit might be to mitigate a common source of strife and strain in relationships: disagreements over money. Without one, you’re more likely to find yourself in the dark about your financial health and lost in the wilderness of debt and financial insecurity. In essence, a budget not only lays out a path for reaching a particular financial destination but also acts as a flashlight to shine the way and ensure that you don’t wander off course. It estimates how much money will come in during the months ahead, and it allocates enough money to cover expenditures such as food, housing, transportation and insurance.Ī good budget also includes allocations for regular savings. So, what exactly is budgeting? At its simplest, it’s a ledger detailing the spending decisions you intend to make. The evidence that budgeting works is clear-cut: Surveys show that those who stick to budgets are less likely to report financial worries or living paycheck to paycheck and more likely to achieve their financial goals. With surveys showing that most households lack sufficient savings to pay for a $1,000 emergency, and large numbers of Americans struggling with debt, the value of creating and following a budget has never been clearer.Ĭreating a household budget can serve many purposes: getting out of credit card debt faster, saving for a long-term goal such as a house or retirement, or simply ensuring that you are on solid financial footing to meet whatever curveballs life may throw at you.