The Effects f Not Keeping a Personnal Budget Essay

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The effects of not keeping a personal budget? Money falling through your hands like sand. Pretty much like driving a car and never looking at the fuel level - eventually you could be stranded. Honor what you earn, and it will help you succeed in a big way. Honor yourself with your vision and organization along with dedication. Have a healthy and happy leap year! • For some people, no effect. They spend less than they make and they are fine. For most people, big effect. 1. With a budget, they actually know where the money is going and find it easier to stop spending before they run out of money. 2. With a budget, they know how much a raise is actually adding to their take home pay. Many people forget that $100 more of pay is really closer to $70 more in take home. 3. With a budget, they can plan on x amount of savings. This can cover emergencies, college savings for children, retirement, new car, new roof, etc. No budget, it's less likely that they have savings. I don't actually budget how much I will spend next month, but I carefully track where the money went last month. If I spend a lot on food one month, I'll go gee, that was a lot of money and instinctively spend less the next month. My yearly amount tends to be pretty much the same year to year--which is a defacto budget. I'm able to pay off all credit cards each month and have quite a bit in savings • Having and following a budget is a window to reality. Not having a budget keeps you away from reality & brings you closer to negative financial surprises.... including losing your house, car, vacations, fine dining etc. • • A miserable existence when you're finally slapped with the consequences of your actions. Not having a budget is like not having a map or plan for your life. A budget will help you live within your means and guide you in achieving your short and long term financial

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