Budgets are tough. But living beyond your means is even tougher. Have you ever heard the saying that knowledge is power? Well in this circumstance it is
so true. Living in denial of debt can only get you so far, debt will catch up with you, and it’s never pretty. The secret to being financially stable is spending less than you earn. That’s it! So a budget is important to make sure that you have more money coming in than going out!
Budgeting is also about protecting yourself, having a back up plan is something goes wrong. This can come in the form of savings, insurance or a combination of both. They say that three months pay is a good amount to have in your bank account separate from your savings. Well that is great – but not always possible. But any money you can save for that rainy day is truly a good thing.
When you know where your money is going, you’re empowered to know where you stand financially. If you’re not earning more than you’re spending, and you can’t find a way out – see a financial consultant – sooner rather than later – before that debt gets out of hand!