How Budgeting And Spending Habits - 1670 Words

A Fool And His Money Are Soon Parted by Thomas Tusser Tera L. Overcast-Davis Daymar College The safest way to double your money is to fold it over and put it in your pocket. I think sometimes this is the best thing to do when learning of a new tax that I am going to have to pay or some expense that I did not plan on paying. In reality, a person does not want to stick their head in the sand but to plan short and long term goals so that he or she is prepared for an unplanned expense or retirement. This paper discusses budgeting and spending habits, loans and borrowing, insurance, stock and mutual fund investments, and retirement planning. Budgeting and spending habits require knowledge. A person needs to understand personal finance in order to protect themselves, understand how to plan for the future, make intelligent investments, and apply the information to their own situation. One can start by using a personal balance sheet to see if your monthly income covers all your monthly expenses. Mint.com is a great tool to use or you can hire a professional planner. Then you can move on to developing a cash budget. Use your income statement to compare to your balance sheet. This will help you monitor your incoming cash with what you spend and see where you can save. This is a good time to look for ways to cut down on spending and increase your savings. To increase your savings you need to learn your spending habits. You can setShow MoreRelatedTraditional Methods Of Managing Personal Income1641 Words   |  7 PagesThere are three traditional methods of managing personal income. 1. Budgeting, 2. Keeping a spending history, and 3. Doing nothing (also known as living from paycheck to paycheck). Budgeting involves setting what percent of future income is to be spent on which categories of expenses, and then recording all purchases in order to track how well spending is staying within the predefined limits. The process sounds very simple, however, it is difficult, in my opinion, to stick with a budget for veryRead MoreImportance Of Budgeting Is Not Hard Even For Younger Children1165 Words   |  5 Pagesvery young, kids are ready for the basic idea in how to save and spend money and as they get older, if parents include them in their own budget planning it will help their children develop good money habits from the start. The concept of budgeting is not hard even for younger children. The hard part building good money habits at an early age. These habits, especially the bad habits, have had the chance to take root are very hard to break. So how do you start to manage money at an early age? ForRead MoreThe Evolution of the Federal Budget Process989 Words   |  4 PagesFederal spending is necessary for the economy and is essential to the accomplishment of national goals and advancement. This is why a budget is needed, however, there is no actual process mentioned in the Constitution that explains how Congress should do this. The Constitution states: No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of Receipts and Expenditures of all public Money shall be published from time to timeRead MoreEssay about The Millionaire Next Door1036 Words   |  5 Pagesin-depth interviews and research of American millionaires and how they are able to stay wealthy by being frugal and not overspend. â€Å"American society’s expectations are not congruent with the reality of most American millionaires†, is directly quoted from the book, and is something I agree with wholeheartedly. 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The personal budget maintenance requires trickiness as the main tacticRead MoreFinancial Literacy Essay970 Words   |  4 PagesFinancial Literacy Review The area in which I spent the most was definitely transportation however, this expense was an absolute necessity that I could not avoid. Being raised to be conscious about my money spending habits and to always look for a bargain was not something I could necessarily put into practice concerning this area. Areas where I spent the least would have to be personal care and personal extras; there is always a great sale and or off brand personal hygiene product to be boughtRead MoreBudgeting Planning And Control Of Coca Cola Company965 Words   |  4 Pages Budgeting Planning and Control Name College Course Tutor Date Company Description Coca Cola Company is the company that most talented employees would love to work for. The multinational company operates globally. The name is known by almost everyone sue to the diverse and unique nature of the company’s products. Over the years that the company has been in operation, it has exhibited exemplary performance. The company experiences such increased performance due to the exemplary management’s performanceRead MoreEssay about Cause and Effects Not Keepinga Personal Budget1233 Words   |  5 PagesDetermining Causes and Effects Revised Version Personal budgeting is an important factor in regards to successful long term financial stability. Budgeting has many great aspects as well as showing areas of weakness. It can show the truth about your personal financial spending habits, areas that are not looked at enough, and if there are needs for a larger emergency fund. The reality of personal budgeting is that many people potentially do not keep a personal budget for one reason or another. People