Controlling Your Finances Through Budgeting
| April 22, 2008 | Posted by Roshawn Watson under Uncategorized |
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This post is part of the Budgeting: Your Foundation for Wealth series
The budget allows you to exercise better control over your finances because you know what is going on with your finances . Control means to exercise restraint or direction over; to dominate, regulate, or to command (Webster’s Dictionary). Now apply that definition to your finances.
A budget enables you to direct, regulate, and dominate your finances.
You may ask why is controlling your finances important. For example, some feel like disciplined spending takes the fun out of life. I would argue that discipline gives birth to habits which are not that difficult at all; however, undisciplined spending often yields more drama than the latest episode of your favorite soap opera. Having your house foreclosed, your vehicles repossessed, your electricity turned off, bill collectors calling, and eating dog food in retirement is not fun.
The budget acts as a spotlight on your financial habits; it enables you to see clearly where your money is going and control it every step of the way. Additionally, although it may not be intuitively obvious, understand that there is little reason to know what is going on with your finances if you refuse to address the problems you identify. . In fact, taking control of your finances is the very purpose of budgeting. Otherwise, you have just wasted effort.
Earlier, I mentioned how gaining control over your finances through budgeting allows you to redirect your financial course. Dear friend, it is so easy to drift off financial course, and it can literally happen in a matter of minutes. Think about the flat screen TV purchase you’ve been contemplating. Making that purchase before you’re financially ready can have a serious impact on other areas of your life. Now, you may not be able to pay for an unexpected vehicle repair or emergency visit to the doctor.
One reason it is so easy to drift off course is because drifting requires no energy. Alternatively, it takes much effort to stay on a financial plan, especially over the long-term. Controlling your cash flow by reducing expenditures and maximizing your savings and investments consistently is the very foundation to almost every solid financial plan. By budgeting, you can correct your course. Gain control over your finances through budgeting today.
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Related Post
Knowing What’s Going On With Your Finances
Where Did My Money Go?
References
Webster’s Dictionary
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