Many people have been in this situation before: You’re doing well on the bills or are ahead in your monthly payment plan, and you get your paycheck & decide to treat yourself. You go out a few times, buy a few things (all small, affordable purchases). And after a little bit, you suddenly have less money in your checking account, than you expect. The extra spending money you thought you had, now suddenly seemed to have vanished into thin air! It seems hard to believe, because you only made small purchases to avoid a problem like this, but you look at how all those small things add up, and suddenly you realize that, although they didn’t seem like a big deal (at the time), when added altogether, they completely bust your wallet!
We all are familiar with this situation, and all of us can relate. Budgeting is important because even individuals making plenty of income (who earn bonuses), can fall into this situation – where they are in monetary trouble. It only takes a tight budget going into the red (just one time) to wreck everything, especially when fees get piled on; and debt collectors, like national credit systems, wait in the wings to tack on more fees, making things go further south. Fortunately, for fees that were unjustly incurred, one can use their consumer rights to fix this problem.
Far too often people will think they’re in good financial shape and use that as an excuse to go & make a lot of small purchases (assuming they can afford them), only to have trouble paying the bills, later on. All of this is easily preventable, and one way to avoid this pitfall, is to use personal budgeting software. These applications help keep track of both income and expenses, which allows the person using the software to visualize better, and understand where all of their money is going. There are no complicated mathematical formulas to program into a spreadsheet, either. Personal budgeting software is much more useful, intuitive and helpful to any individual that uses it.
Arguably the best budgeting programs use a system called “zero-sum” budgeting, which means that every dollar is assigned a job – whether it be saving money for retirement or paying off collection agencies, like united recovery systems. It can also refer you to sites that help you further understand financial management. Overall, this software helps you, not only keep track of expenses, but also to specifically allocate money for saving or spending.
While there are many people who are skeptical of the power of personal budgeting software, this skepticism often comes from people who haven’t used it or assume they’re financially fine – even when they’re not. The vast majority of individuals who use this software have been helped out greatly by it. To prove this point, a recent survey of users of a popular budgeting application were found that, after 31 days of using the software, those who actually followed the advice of the application were (on average) able to pay down $500 more on their debt, than those who did not use the software. Think of the financial progress you could make if you reduced your credit card bills or student debts by an additional $500 (or more), every single month. If you’re one of the lucky few for whom debt is not an issue, then think of how quickly another $500 a month can be used towards early retirement or a fantastic and memorable vacation!
Creating a budget is not an activity that is just reserved for married couples, but it is important for all individuals and many young people, as well. Starting out with good budgeting software (while you’re young) will give you a big advantage in managing your finances, throughout life. The earlier one learns to budget and manage their income and avoid debt collectors, like hunter warfield, the more likely they are to be financially successful, later in life. Overall, there’s no question that a personal budgeting software program will make the process of financial responsibility a whole lot easier.
With an excellent personal budgeting program, you will be working to figure out ways to put your money to work, and you will see positive results over and over again! This also uses the concept of setting a budget for the current month’s expenses, based on the previous month’s income. No matter what your budgeting and financial goals are (whether it be to reduce or eliminate debt, save for a new car or set up an early retirement fund), you need a realistic & workable budget that you can live with – otherwise, you will lose money…and the options that came along with it.