Thursday, September 23, 2010

The Reason Why I Should Have a Budget

investment philippines

The Reason Why I Should Have a Budget


You say you are aware on the things that had eaten your money and there is no need for you to write them down? Then I am issuing you this challenge. Keep in mind your expenses for one month. I mean every penny that you will use.
You will be amazed on your total expenses. Take the total amount that you had spent on a single item for the month, multiply it by 12 for there are 12 months in a year and multiply the result by 5 for 5 years.
If only you had saved that money, then you will be receiving interest already. That is the main reason why a budget is needed.
If we can manage to avoid buying things that are not important at all, then we can fully enjoy success on financial matters.

Little things really count. Say for example that you will not spend for lunch; instead you will have packed lunch. You can save $3 dollars a day, $10 a week, $40 for a moth, $480 for one year, $2400 for five years, and plus interest.
Did you get what I mean? By your lunch alone, you can save enough money. There are many other things that you can save your money aside from your lunch. Try to look at those things and examine if you can save on them.
Set some short and long term goals. All answers are accepted, there are no wrong answers. If it is essential to you, then it is an essential period.
If you like to have a house, or to pay for its down payment, save for the college expenses of your children, buy a car, take a break or anything... then that is your objective and reason to have a control over your financial situations now.

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