If you are one of those people who like to buy and buy, especially impulse buyers. Then you realize that week after week and month after month, you seem to have more stuff than you really need or really even wanted. And every week you are wondering why you seem to be living from one paycheck to the next paycheck. And never having the enough funds to make it through a whole month, without having to use a credit card to get the ends to meet.
What are some of the signs that you could be an impulse buyer? Well let’s start with collecting gadgets. Are you always purchasing the newest and hottest gadgets out on the market and then letting it sit somewhere at home, only to be gathering dust.
Secondly once you have received your credit card bill are you balking out the total amount that you paid for the brand new outfit that is still hanging up in your closet with the tags still attached.
And lastly are your eyes bigger than you wallet, making you tend to purchase things that you think look good or that you think that you want.
Well there is a solution to this problem and it is called budgeting. What budgeting allows you to do is take control of how you are spending your money each month. For example lets say that you eat out for lunch five days a week at $6-$7 a day, right there you are spending around $30 -$35 dollars a week or $120 – $140 a month or a whopping $1440 – $1680 per year.
So as you can see just by eliminating the eating out for lunch everyday could put a positive cash flow in your pocket of $1440 – $1680 per year. You can do this with just about anything “extra” that you might spend money on, from purchasing a simple cup of coffee to ordering pizza.
If you were to put a budget in place you in essence are setting a certain dollar amount the certain aspects of your lifestyle. Of course everyone needs to take care of the necessities such as tithes, shelter, food, and important utilities such as electric, phone, water, and such. But the budget really assists in controlling those extra expenses such as entertainment, toys, and other things outside of the basic necessities that are needed to daily living.
To create you budget, you first need to do some analyzing on the things that you are currently spending your money on. Typically the general rule is to write down everything that you spend money on and the amount. Once you do this you will quickly see that there are a lot of things that you are purchasing that can be eliminated and that cash can put to use somewhere else in your financial picture. You can use this money to pay down debt such as credit cards, mortgage and cars, and loans. Or this money could go towards to saving for some thing that you really want, like a Caribbean vacation, a pet, or just plain putting it aside for a rainy day or even for retirement.
As you can see budgeting is essentially especially if you are looking for ways to improve your positive cash flow and lead a life that is debt free.