Importance of Budgeting and Saving

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IMPORTANCE OF BUDGETING AND SAVING

Importance of Budgeting and Saving

Andrea N. Kirkwood

GEN/200

22 March 2010

Mr. Otis Langford

IMPORTANCE OF BUDGETING AND SAVING

Importance of Budgeting and Saving

Do you find yourself living from paycheck to paycheck, unable to pay your bills, struggling financially? If so, you are amongst the millions of people who suffer from these same issues everyday. One of the best ways for you to get on financial track is to establish a budget. What is a budget you ask? As defined by Merriam-Webster, a budget is “a plan for the coordination of resources and expenditures” or “the amount of money that is available for, required for, or assigned to a particular purpose” (Merriam-Webster). A budget will help you realize your true income, assess your debt, see how your money is really being spent, and should help you save on some of your unnecessary spending.

Budgeting is one of the most important factors when it comes to financial stability. A budget is a precise way to help you live within your means and get your finances under control. Making an individual or a family budget will assist you in your planning when it comes to saving for the education expenses of you or your children, maintaining an emergency fund, planning vacations, buying a home and numerous other unexpected events that life may throw your way.

IMPORTANCE OF BUDGETING AND SAVING

Creating a budget should be a very simple process. You need to figure out how much money you have coming in and how much money you are paying out. List all of your expenses for the week, month, or year. Don’t forget to include money for emergencies, savings, weekends, and maybe a few dollars for lunch or snacks everyday. You will then be able to figure out how much money you have left and may be able to save a little more than what you are…...

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