Budget your money for success

August 2, 2022 admin budget your money for success, budgeting, Featured, finances, gokul Jayapal, immigrant, investing, money & business, newcomers

Credit to Author: Gokul Jayapal| Date: Tue, 02 Aug 2022 17:30:02 +0000

Living without a budget is like travelling to a destination without a map. While both are possible, you are likely wasting time and gas without a map, and wasting money without a budget.

Budget is not a dirty word; it is a rather liberating one. It magnifies the buying power of your hard-earned money, and is a great way to track your cash flow to help achieve your future goals. It is actually telling the money where to go instead of wondering where it all went at the end of the month.

Budget benefits

Budgeting your money brings you lot of advantages. It helps you to:

avoid overspending
keep your credit score in check
avoid getting into consumer debt cycle
take control of your life
build your savings.

Simply put, budgeting means that you have a way to keep your spending within the limits of your income, and a way to determine how much money you need for the things you want in life.

Understanding income and expenses

If you want to know how much money you need, add up all the money you spent in the past year for rent, gas, groceries and so on (including interest on your credit cards and other bank account fees), and divide it by 52 weeks. The result is your weekly budget. This is the estimated amount of income you need to bring in every week to meet your necessary expenses, which does not even include savings or financial goals.

Attaining such financial goals should be part of your budget as well. For example, if you want to save $20,000 for a down payment for a house in four years from now, determine how much you need to save every week to make that happen — divide $20,000 by 208 weeks, which will be $96 per week.

Financial clarity

Having a sense of financial clarity is important for every decision you make in life, so take control of your money — and stress! —with a budget. Then monitor it every three months to reduce any wasteful expenditures or to adapt it to changing circumstances. Living below your means by the way of budgeting and investing the money you save is incredibly powerful and will help you to achieve your financial dreams.

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