Budgeting tips

Hello,

Many people I speak to who want to handle their money issues really struggle in one area: budgeting.

One of the really difficult hurdles they have to handle is never being trained to budget. Budgeting is a skill and it is almost never taught in school or passed on from adult to child. Once this starts to drop out in a generation, the children go on without this vital skill and therefore cannot pass it onto their children.

In order to balance expenditure with income, a budget is needed. If a person lacks the basic skill required to budget, the tendency is then to overspend and use credit to attempt to balance outgoings to income. It is my firm belief that over use of credit cards to provide an artificial standard of living is a direct result of the missing skill of budgeting. Once the skill is rehabilitated, the situation can change dramatically

A well designed budget has a very simple result, it balances income and expenditure. Once this is balanced, spending comes under control and the tendency to use credit begins to wane. In my experience in working with people in this area, once the budget is balanced, the time between that point and eradication of all debt can be surprisingly short.

Have a great week and happy budgeting!

Malcolm