Personal budgets have great aspects. Budgeting allows you to become responsible to prioritize your spending, to make financial goals, managing your debt, save and assess your spending. Many people do not keep personal budget for one reason or another. Without a personal budget you will find yourself with debt not able to pay your bill as usual. The lack of knowledge is not taught on how to budget finances, which can lead into a vicious cycle. So if not prepared for an unexpected emergency could destroy individual or family that is impacted as well as the economy. The negative effects that it could have on one…
Why Budget. Do you have a budget? Why or why not? What do you think are the major reasons why people do not make formal budgets?…
America is the land of the free and the home of the brave isn’t it? Then why is our nation in such immense debt? Well the simple reason for that is we don’t know how to manage our money efficiently. In order to be successful and stress free you have to plan and save. Be proactive in saving for things such as emergencies, large purchases, and wealth. These things are important to stay out of debt and have financial freedom.…
Finally, learn to save for financial emergencies. Even if you feel robust and invincible, a single emergency room trip or car accident could force you to pay large sums on credit, causing interest to accrue and more debt to pile up. For instance, when your tyre goes flat and you cannot pay up front for the replacement, you would usually have to pay by credit or using funds earmarked for necessities. This is where an emergency fund comes in…
I believe that young people should be required to have a budget and stick to it, for many reasons. First of all if a young person is required to have a budget and stick to it they will learn to manage there money so that they can have money to make it through till their next payday.…
In addition, credit, debit, and insurance have an big impact on how you spend and manage your money. The impact of credit cards are that you can pay for things but, it's a loan. You will have to pay back the money and plus a little more for interest. Debit cards are different from credit cards. Debit cards use the money that's in your savings account, you will not have to pay back money because it's your money that put in your savings account. Insurance has…
"The budget process is one aspect of personal financial planning, a tool to make better financial decisions." (Siegel, R., & Yacht, C. (2009)) There are, like there is to everything in life, other financial tools that can help. Such as financial statements, risk assessors, time value of money, micro & macroeconomic…
Living outside of your means just to have nice things is also a bad habit which can lead to even more debt problems. Instead of being fiscally responsible and budgeting and purchasing items that they can afford based off their income people tend to think there income will always be there and that there income will continue to grow but that isn’t guaranteed. The…
Healthy individual finances are important to the economy in North America because we all play an important role in our economy and we all contribute to our economy. Most of us have jobs which is a part of the economy. MOst of us but things which is part of the economy. Most of us live in houses or apartments which is part of the economy. It’s very crucial that we make smart decisions with everything because everything we do affects the…
What hobby can record and influence one's entire life? Photography can. In fact, photography is interesting enough to attract hobbyist across the ages. The reason for photography is an admirable hobby thanks to at least three dimensions, which are: it keeps memories in mind, changes the way how people observe world, and trains one's patience.…
One factor of having a budget is how they get their money. If they work for their money and have a job I feel as if they allowed using their money how they want but it would always be smarter to have a budget. If they get money from their parents it should definitely have a budget. You can have a certain amount of the…
There is no doubt that education is essential to people's lives. Having a good educational background is an important factor to get a good job and to work effectively. However, one of the saddest issues in today's society is the college dropout rate in many college or university remains very high. Some people are successful because they have the motivation and determination to graduate college; others are less lucky because they start college and feel as if they lack the preparation, desire, discipline or ability to succeed academically or persevere until a degree has been earned. This leads to quite a situation–to find the support needed to continue or to dropout? Whether you’re realizing that college isn’t for you, family issues, laziness or even debt, understanding some of the common causes and effects of quitting college may aid in the decision.…
In November 2005 AC Nielsen and the ANZ produced quantitative research into personal debt in Australia called “Understanding Personal Debt and Financial Difficulty in Australia. The survey identified six factors regarded as “unhealthy” ways of thinking about personal finance. Examine each “unhealthy” way of thinking about personal finance and explain why they are “unhealthy” including the consequences of thinking that way. Demonstrate ways that the individual can avoid these ways of thinking. Use ORIGINAL examples to illustrate your answers.…
Not having actual bills and payments needing to be paid i have many flaws in my budget. Finding the flaws of your budget is very important. For instance one flaw in my budget is that I said it’ll take only $45 to pay the phone bill. Another flaw within my budget is that I didn't put any money aside for medication. What if one of your insurances don't cover the cost of the medication fully, setting money aside just as a precaution is important. One other major flaw in my budget is that I didn't put any money out for lawn care. When I first was doing my budget I was think that it meant that someone was going to come mow your lawn, but now that I am taking a relook at it I am looking at is as if the blade from the lawn mower breaks I am going to go need to go get a blade for it or gas to put in it. So I have to set aside some money for lawn care. Therefore a lot of adjustments need to be made on my…
Learning to live in a tight budget is an important need in the age of a teenager. Mainly because they don’t have guaranteed source of money, they just have to wait for money coming from the parents. To live in a tight budget the person should use his mind in two important aspects, firstly thinking in a critical economical way to save some money, secondly trying to enlarge the budget.…