“I’m a busy guy but I set aside quiet time every morning and every evening to keep my equilibrium centered on my own path. I don’t like being swayed by anything that might be negative or damaging. ” -Donald Trump
Budgets are never a welcomed topic of discussion. They can be frustrating to develop and even harder to to stick to. However, freedom from financial stress can not be acquired without a budget. Budgeting is all about attitude. Do not consider it a budget but a spending plan. Structuring your finances in a clear way will allow you to see what money you have to spend on investing. Once a budget is in place and you learn to stick to it, spending more wisely will become a habit and less of chore.
I can guarantee that after the first six months of budgeting when you see your savings or money market account grow in size, you realize that you are not dying from starvation or boredom – you will approach budgeting in a more positive way. The world's most successful investors swear by budgeting and expense tracking.
In addition, all businesses have budgets which they strictly adhere too. If you are interested in investing you must have a budget. The first piece of advice a financial advisor will give you is to track your expenses. Make sure you do that before you see an advisor and save yourself sometime! Let's outline the rewards you will get from budgeting:
~ Budgeting helps control luxury spending or impulse purchases.
~ It will help to keep strict control over your expenses.
~ You will know exactly what your money is being used for.
~ It will also help you pay your bills on time.
~ Budgeting will help you save money and that money can be used for investing.
~ This can build up your net worth and secure your financial freedom.
The first step is to figure out how much your net worth is. Net worth is defined as the total of all your assets minus all your debts. Obviously, we want this to be a positive number. However, most of us have a great deal of debt. If the number is negative, it's OK, you can budget your way into a better financial situation.
Now you should total up all your forms of income. These could include salary, income from businesses, investments, tax returns, and interest on banks accounts. As a very conservative rule of thumb, 10% of your monthly income should go right into a savings account. If you leave extra money floating around in your checking around you are going to spend it.
Many companies will allow you to defer a certain percentage of your pay check directly into a savings account. You can not spend money you can not touch. If you want to secure your future start budgeting today. The hard work and planning will pay off in the end with financial success.
Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.com
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