KNOW YOUR FINANCIAL CONDITION
Proverbs: 27:23-24 tells us...Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endure to every generation?
By creating and following a budget, you make the decisions, you allocate the amounts and chances are that you’ll have the money for all the things you need and want.
A budget is an itemized listing of money that will come in and money that will be paid out. In a personal or family budget, all sources of income are identified and expenses are anticipated with the ultimate goal of spending less than what you are bringing home.
Some may find it challenging to maintain a budget, but your life is so much more orderly with a budget than without.
TOP 5 REASONS TO HAVE A BUDGET
- Having a budget will force your to live within your means.
- Having a budget will help you prevent overextending your financial obligations and overspending. Overspending usually leads to excessive credit use – a practice that could lead to serious financial difficulties.
- Having a budget will enable you to be in control of where you spend your money on variable or discretionary items, like entertainment, charity, and clothing;
- Having a budget will motivate you to be proactive in giving and saving for future purchases and include savings and giving as a budget category.
- Having a budget will cause you to limit impulsive spending and test unplanned purchases.
Here is a Percentage Spending Guide to give you some idea of how much you should be spending.
Or, try using the Spending Plan to get started on your budgeting.
Upcoming: How To Set Up A Successful Budget.
Erica Hall is the owner of Erica Hall Wealth Advisors, LLC., a financial planning and investment management firm, located in Southfield, MI. The firm specializes in working with individuals seeking to build wealth and protect their assets. The company’s client-centered planning services include, Retirement Planning, College Planning, Wealth Transfer Strategies, Portfolio Management, Cash Flow Management and Life Insurance Planning. For more information, please visit ehwealthadvisors.com.