To keep your financial affairs in order, it is pertinent to have a budget in place. If you currently do not have a budget, you should not spend any money until you have one in place. For as long as I can remember, budgets have received a bad rap. If you talk to someone who budgets successfully, they will tell you how empowering and freeing a budget can be. A budget is a plan that gives you the ability to tell your money where to go rather than letting your money control you.
Despite popular opinion, living on a budget does not mean you can no longer enjoy life. In reality, a budget gives you the power to spend your money on what you truly value in life rather than wasting it out of habit.
There are unlimited examples of people who make an average salary and can get out of debt and build wealth. With a proper budget, you can not only make a plan to eliminate your debt, but you can also figure out how to pay for all those bucket list items you dream about.
Right now, your credit cards maybe your insurance policy for when life happens. Rather than relying upon a bank who is willing to charge you 16% or more to borrow money in an emergency, you can be your own insurance policy.
If you do not have any money in a savings account and you are forced to put money back on a credit card, you are moving backward. If you have emergency savings and an unexpected money issue happens, you can pull cash out without having to increase your debt.
With this method, you are your own bank and you can guard yourself against going further into debt.
This self-financing method works like a charm every time. It is expert recommended and definitely the way you should proceed with your financial safety nets. For more great advice, follow our knowledge hub!