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Why Do I Need a Budget?

Why is money such a hassle? We work so hard to get it and then, by the end of the month, we wonder where it went. We know that we should be saving and investing, but how are you supposed to save or invest what we don’t have?

I get it, I’ve been there. Managing money is hard, it can be time-consuming, and it can seem like a waste of time if it’s just going to be gone in the end anyway.

So, what do you do? Most people just ignore it. A card is handy. Sure, you get these pesky little bills every month, but as long as you don’t look at the balance, it’s no big deal.

Unfortunately, it is a big deal. A lot of people struggle with credit card debt. You are not alone. According to a 2019 Experian Consumer Credit Review, the average American has $6,194 in credit card debt. Let’s take a minute and think about that. What does $6K look like? It could look like a Disney trip for 4. It could look like 5 years of fast food. The average American spends $1200 on fast food every year. It could look like a used car. No matter your situation, $6K is not a small sum.

So, how do you tackle that debt? Well, a budget of course! You can’t begin to pay off debt if you don’t have extra money to put against the debt. You won’t have extra money, to put against the debt, if you don’t know and plan for where your money is going.

Budgeting has the added benefit of preventing further contributions to said debt. There are a TON of tools out there to help you create as basic, or as elaborate of a budget as will help you be successful!

If you don’t know where to start, or you are worried about the time commitment, start simple. Grab a sheet of paper and spend 15 minutes (go to the bathroom if needed) and write out all of your monthly household expenses. These are going to be the expenses that are non-negotiable, utilities, rent/mortgage, insurance, etc. Include everything that has a bill. Add it up and subtract it from your income.

Where does that leave you? If you gasp in shock, it’s time to evaluate where you can cut costs. If you have money left over, but still can’t seem to pay down your debts, then you need to take a hard look at your spending habits.

Some people, can do this all on their own, others need help, accountability, and frankly, a kick in the ass. Debt freedom isn’t for people who gladly walk into bankruptcy. Debt freedom is for people who want to leave a legacy and create abundance in their life. If that sounds like you, and you know you don’t have the determination to do this on your own, you may need a financial coach. There are Ramsey Preferred Coaches across the nation who are standing by, waiting to help. We don’t sell products, or insurance, or investments, we sell our time and our knowledge to help you to be successful.

Get in touch and get help today. It doesn’t have to me, but it does need to be someone.