There aren’t many financial words that make me cringe more than this one: budget.
Nobody wants a budget. It is restraining, and is something most avoid like the plague. But do you need a budget to become wealthy?
Well, the experts weigh in on this along with their reasons why, as well as how to create a budget that works.
Enter the experts…
Yes, You Need a Budget (6 Experts):
“Personal finance cuts across all social strata. Personal finance is not passive; it requires you to take action to control it. Budgeting your finances is important because if you don’t begin controlling your funds, it will control you. Success with money comes from creating discipline.
Personal finance is a sum of your money and your behavior. Too often, we count ourselves out of the game because we have made a few mistakes. I want you to consider the following statement:“You are not your bank balance; you are not the sum of your debts. You are a human being.” – Natasha M. Campbell, Founder and CEO, Lifestyle Success Unlimited
“Budgets are an essential part of creating a healthy financial life. Without budgeting, you can’t track what you’re spending. Budgets are like a map. You wouldn’t drive across the country without a GPS so why not budget?
For people who don’t want to think too hard about categories and percentages, I advocate the 50/30/20 rule, which says that 50% of your pay should go to living expenses, 30% to entertainment/shopping and 20% to savings and debt payments.” – Zina Kumok, Blogger, Debt Free After Three
“What are some tips that you would give someone to create a sustainable and simple budget?
1) Start with Why – people can do budgets perfectly but if there isn’t a strong reason to follow through it’s pointless
2) Start Simple – round numbers, make educated guesses
3) Expect Issues – it takes a long time to dial in numbers and match it to your real behaviors. If you go into it knowing there will be issues, you won’t view it as failure…just something to adjust.” – Dave Jacobson, Financial Coach, Financial Fitness
“Tracking spending is the only way to truly know where your hard-earned money goes. A recent NFCC poll showed that most people think a budget is restrictive, when in fact it is meant to put you in charge of your money. [Read more…]