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Get in your car, start the engine, put on a blind fold, and hit the gas!
‘YOU’RE CRAZY!’ you might say, and you would be RIGHT!
Sadly, THIS is what happens when Americans drive their life without creating a BUDGET.
The difference is this; if you were to get behind the wheel as described above, you WILL cause a lot of property damage, but you won’t get very far.
However, when you drive your life as described above, you could very well cause a lot of personal financial damage, but it could be years down the road before you finally realize the severity of the damage you have caused.
Staying with the ‘auto-analogy’; a budget for your life is what a GPS is for your car.
Your budget will keep you on the right road, and also right on target, towards a solid financial foundation and a solid financial future.
KNOWING how much money you have in the bank, and KNOWING your fixed expenses (Rent/Mortgage, Utilities, Insurance, Gas, Groceries, etc), can certainly help you in keeping your frivolous spending under control.
This is so simple!
So why are 80% percent of Americans up to their knees, and some up to their necks, in debt?!
The answer is this: because it is so easy for people to whip out the credit card on a daily basis and just charge-charge-charge.
We charge at the breakfast drive-thru window, we charge during our mid-morning break online, we charge at lunch with our co-workers, we charge on our way home, charge-charge-charge, and by the end of the month we go into shock when we see the bill, and then… despair, because NOW we have to figure out how we are going to pay the darn bill.
Hey, no worries… just make the minimum payment! Problem solved! Right? – WRONG!
Minimum Payments are what get most Americans into credit trouble and it is NOT an effective strategy when it comes to using credit.
Creating a BUDGET is very simple.
All it takes is for you to write down all of your monthly income, then, write down all of your monthly expenses, then, subtract all of your monthly expenses from all of your monthly income and wham-o!
Whatever balance you get, is what you have left to spend throughout the month.
BUT WAIT! THERE’S MORE!
What you do with ‘what you have left’ is very important, and we will get into that as we go along, but for now, just know that you cannot spend anymore throughout the month than what you have left.
Goodwill Credit can help turn your bad credit into good credit and make your good credit even better. SUBSCRIBE NOW.
