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The importance of saving, and budgeting
Yesterday I talked about what happens when you are unprepared. Today I want to talk about what happens when you are prepared; and catastrophe strikes. Saving and budgeting are very important, but often they go overlooked. We get to accustom to our jobs being there for us. When in reality; they’re very unstable.
Recession has proved that to many unfortunate people. Employment is here today; and gone tomorrow. By saving, budgeting, and keeping your head straight you can get through tough times though!
You may be asking what budgeting has to do with anything if you have no money left. Well, when I say budgeting I mean learning to divvy your income appropriately. If you constantly find yourself with only $20 to your name after paying your bills every month you’re living very dangerously. Your budget needs some attention.
If you don’t have that safety net every month and an important cost like a vehicle repair comes up you could be in trouble. If you want to get your budget in order you first need to analyze your bills, and see where you’re spending money. If you need a little help Mint offers a great tool you can train to budget for you! It will analyze your accounts, and tell you where your money is filtering from your wallet.
Start by identifying your big spending. Eliminate things you rarely use or don’t really need. Unused expensive gym memberships, magazine subscriptions, extra uwatched TV channels, ect. These things are putting a slow drain on your pocketbook, and sucking up your savings. You’ll be amazed how much money you have without these things!
If your money problem is your housing situation you may need to find something cheaper. Buying housing you can’t really afford is never a good thing. If you’re in a mortgage; selling is probably not an option right now. So, you’ll have to cut other big expenses like utilities.
Now, that we’re budgeted we know exactly how much money we need every month to live. This is important, because we need to save this much money! Most recommend you save at least 6 months worth of income in case of disaster. Keep this money put away somewhere you can get to it if need be.
If you lose your job or fall on tough times this will provide you with 6 months of normal living resources. If you can cut costs then it will go even farther for you in the event of income loss. Recently I had some severe medical problems, and was out of work for 3 months. I had some sick time pay, but it didn’t last but for a bout a month.
Thankfully I had enough savings, and low enough budgets to see me through the rest of my down time. I need to re-coup now, but that’s what it was there for! It did its job for me, and I need to get back on track. Life will throw you against the wall if you let it, and I’m trying my best to be prepared. Now, I’m working again and I can get back to saving.
Originally posted 2010-08-11 12:02:55. Republished by Blog Post Promoter
22 Responses to The importance of saving, and budgeting
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Thanks for your support! Much appreciated. Glad you enjoyed my postings. : )
Not enough people realize this. Save for the future!
Yes, you are absolutely right. Everyone must think about the saving and budgeting. Nobody knows about the future, today everything is ok, but this is very difficult to say that everything will be OK tomorrow. So that’s why everyone must be prepared and save some money for future.
With this world economic crise, it’s so crucial to save our money !
Saving is paramount because when those unexpected bills come in they are a nightmare. Car breaksdown / utility bills go up sometimes theu seem to be neverending
People should realize this fact and save for their better future…nice post
Great job on the site, it looks wonderful. I am going to bookmark it and will make sure to check often
I think that the first step to anyone taking control of their finances is learning to save and taking account of one’s budget. Unless you realize how much you’re spending(which doesn’t help with the invention of the debit/credit card) one’s not going to be able to tackle their finances. Budget and save and you’ll be well on your way to financial freedom.
Budgeting is a very important part of saving money. We advise that you use a debit card or checking card for everyday purchases and your credit cards only for emergencies. Just that 1 step will save the average person a bundle in banking fees.
I never thought I would ever be in this position, but it happened, and it happened fast! I am in the mortgage business, so unfortunately my business took a big hit with the housing crisis, but I will recover!
I think this article was so informative, saving money when the economy is bad, like right now, is critical. Many people are learning how to stretch a dollar like never before. Before we knew it, the economy went to nothing, hopefully the jobless rate will improve shortly, nevertheless, this is still a great article, I like to go by the saying, everything adds up!
Thanks for sharing this. We’re always looking for great resources to share with clients and my colleagues, and this post is definitely worth sharing!
I really enjoyed this post. You write about this topic very well. I really enjoy reading your blog and I will definetly bookmark it! Keep up the interesting posts!
Valuable info. Lucky me I found your site by accident, I bookmarked it.
Certainly in times of crisis, leads to appreciation the important things of life, not have and yet to be.ABOGADOS
You actually a really smart individual! Nice post! GA seriously also my biggest earning. Nonetheless, it’s not a much.
Greetings! I’m very impressed by the helpful information. Do I have your permission to quote a part of your post in mine? Thanks!
Hi,great post,thanks for your share! and I wonder if i can this post in my website if I put a link back to yours? Waiting for your answer!
Saving is very important to secure your future and to be independent….what you say?