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Proper financial planning budgeting can make a habit of spending money in a wise way

Posted August 27, 2012 by Elina S to Finance 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

Proper financial planning and budgeting is an essential thing for every individual. Money is perhaps the most movable thing in this world. It is very difficult to hold it in a single place. Handling it in a proper way is not a matter of joke. Most of us don’t know the proper way of budget it and spend it. You should have proper planning regarding your income and expenditure, otherwise it may get you trouble in later stages of your life. It may ignite various types’ family problems, social problem and professional life problems. Proper financial planning and budgeting doesn’t mean that you will not spend pennies to fulfill wishes of your and loved ones. It means to spend money in a wise way.

By proper financial budgeting and planning you can cut down your unnecessary expenditures. In present days most of us uses credit cards, they can get you in serious debts. The main tag line of a credit card is “buy now, pay later”. This is a very provoking line. It tempts you to buy things even if don’t have sufficient money to spend. Once you start making habit of spending money through credit card, you are not that much aware of your bank balance. At the end of the month when it’s time for repayment you get into serious debt. If you fail to pay it on time, interest amount will rise and then you are in more problems. Credit card companies will start harassing you, your prestige in family and society will be damaged and you will be in frustration.

At the time of financial crisis, for instance you may take help of other family member. But if you don’t change your bad habits then it is not at all a permanent solution. No one will help you every time when you get into any crisis regarding money. You are the sole one who can change everything. As you are responsible, so you have to take up the responsibility and change the scenario. It is always a very bad habit to repay the debts by borrowing from other source. It can give you temporary solution, but in reality it actually doesn’t help your cause. Thus try to repay the debts regularly on time, for that you may cut down your extra expenditure. Your first priority should be, not to allow accumulation of debt beside you.

You must be aware of your family and your personal incomes. Then at the start of the month you must chalk out your must expenditures that are unavoidable. Keep some money aside for savings as this money can help you under many unavoidable circumstances. Try to avoid any type of debt shopping or marketing as it is a very bad habit. If you don’t have the sufficient money don’t buy it, wait for the next month or so. You must also keep a regular note about your expenditure. You may take help of a spread sheet or other computer software to keep regular record of your spending. This thing is very helpful as you get aware of everything buy it. Proper financial planning and budgeting thus can make your life happy and prosperous.

About Elina S: Elina is a financial content writer for http://www.logbookloans4u.co.uk/. She is also a financial advisor.

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