Darci Deakin A01679461
FCHD 4460
Budget Assignment
Budgeting is a wonderful and essential key in managing your money. Yet, most people don’t take advantage of the benefits of living within a budget because it takes to much additional work, along with giving up and preventing yourself from enjoying some things in life. Having a budget has many positive aspects of keeping it. The first being, gives you control over your money. A common phrase is, budgeting gives you control over your money and not your money is controlling you. This means that with a budget you will get to decide what your short and long term goals are, and work towards those goals. You are in control and you aren’t going to stress that you are lacking funds. The second positive …show more content…
Any type of budgeting method should help benefit you one way or another if you are disciplined and dedicated to living within this budgeting method. One common budgeting method is the envelope system. This system involves using cash, usually placed and categorized in different envelopes, and only using the money set aside in each category for the month. The running total of expenses can be noted on the outside of the envelope. The cash helps you visually see where your money is going, but the key is being self-controlled enough not to rob another envelope when one category runs dry. The downfall of this system is having such big stash of cash laying around, this puts you as an easy target of theft if others know you use this budgeting method. Another budgeting method to use is the online and apps. This is one method that is become more and more popular. It is very convenient to be able to check your finances wherever you are at. This is also a method that is really targeted towards the younger generation as they prefer this method over many others. Another wonderful budgeting method is the 50/30/20 budget. This method can easily be outlays on paper, computer software, or spreadsheet. You look at your income, usually after taxes, and make sure that no more than 50% of your money is paid towards fixed expenses. The same goes with 30% of your income towards discretionary spending, and leaving 20% as savings. The …show more content…
Every person, no matter how disciplined they are, may struggle with a budget at one point or another. Stumbling blocks are going to pop up. One stumbling block that individuals can overcome is the unpredicted expenses. A way to overcome this stumbling block is to create an emergency account. An emergency account will let you have money saved incase the water heater breaks or some unexpected hospital bills come up. Another stumbling block is irregular expenses, including those expenses that pop up randomly throughout the year. This could include your birthdays, holidays, car registrations, etc. But it can also include those expenses that you don’t know are coming, including weddings, showers, parties, etc. This way, you are never having to worry about these expenses because it is already built into your budget. This account will let you put money aside each month, so when non-monthly expenses come up, you will have already have money set aside to pay for them. Lastly, knowing how broad/ how narrow your budget categories should be is a stumbling block that many people struggle with and can overcome. There is no right or wrong way budget. As long as you are aware of each area in your budget and how you personally perceive each category is consistence, you will be okay and see success in how you manage your
FCHD 4460
Budget Assignment
Budgeting is a wonderful and essential key in managing your money. Yet, most people don’t take advantage of the benefits of living within a budget because it takes to much additional work, along with giving up and preventing yourself from enjoying some things in life. Having a budget has many positive aspects of keeping it. The first being, gives you control over your money. A common phrase is, budgeting gives you control over your money and not your money is controlling you. This means that with a budget you will get to decide what your short and long term goals are, and work towards those goals. You are in control and you aren’t going to stress that you are lacking funds. The second positive …show more content…
Any type of budgeting method should help benefit you one way or another if you are disciplined and dedicated to living within this budgeting method. One common budgeting method is the envelope system. This system involves using cash, usually placed and categorized in different envelopes, and only using the money set aside in each category for the month. The running total of expenses can be noted on the outside of the envelope. The cash helps you visually see where your money is going, but the key is being self-controlled enough not to rob another envelope when one category runs dry. The downfall of this system is having such big stash of cash laying around, this puts you as an easy target of theft if others know you use this budgeting method. Another budgeting method to use is the online and apps. This is one method that is become more and more popular. It is very convenient to be able to check your finances wherever you are at. This is also a method that is really targeted towards the younger generation as they prefer this method over many others. Another wonderful budgeting method is the 50/30/20 budget. This method can easily be outlays on paper, computer software, or spreadsheet. You look at your income, usually after taxes, and make sure that no more than 50% of your money is paid towards fixed expenses. The same goes with 30% of your income towards discretionary spending, and leaving 20% as savings. The …show more content…
Every person, no matter how disciplined they are, may struggle with a budget at one point or another. Stumbling blocks are going to pop up. One stumbling block that individuals can overcome is the unpredicted expenses. A way to overcome this stumbling block is to create an emergency account. An emergency account will let you have money saved incase the water heater breaks or some unexpected hospital bills come up. Another stumbling block is irregular expenses, including those expenses that pop up randomly throughout the year. This could include your birthdays, holidays, car registrations, etc. But it can also include those expenses that you don’t know are coming, including weddings, showers, parties, etc. This way, you are never having to worry about these expenses because it is already built into your budget. This account will let you put money aside each month, so when non-monthly expenses come up, you will have already have money set aside to pay for them. Lastly, knowing how broad/ how narrow your budget categories should be is a stumbling block that many people struggle with and can overcome. There is no right or wrong way budget. As long as you are aware of each area in your budget and how you personally perceive each category is consistence, you will be okay and see success in how you manage your