Budgeting Basics Resale Rights Ebook

Ebook Sample Content Preview:

And this brings us to the final category- debt. We all go into debt at some point in our lives for a variety of reasons. Whether it’s from the purchase a house, unforeseen emergencies or simple over spending, credit and debt has become an unfortunate commonality in our world today. Some may go as far as saying it has become a necessity for most people. No matter how you look at it, it would be irresponsible not to address it as a major concern in your budgeting.

This section is not going to go into the pros and cons of credit and debt, that’s coming up later. For the time being we will simply be outlining a list of the different types of credit and debt most people will likely have to handle in their budget. The following table separates them into 2 categories – Fixed Debt Payments and Variable Debt Payments.

As you can see, for the purposes of establishing a budget, fixed debt payments are pretty straight forward and simple to recognize. Any debts for which you make regular payments on that are the same amount each month, would fall into this category.

As mentioned earlier, you will be taking a more in depth look at your debts and determining if there may be opportunities for improvement. For now, the purpose of this table is simply to get all your payments listed for your budget.

Now that we have completed listing all sources of income and expenses, we have a much better idea of what your financial situation looks like. Our next step is going to be putting all these numbers into a budget based on your current situation. Once we have completed that process, the discussion will move towards learning how to find new solutions based on a greater understanding about what cash management is.

As important as this process has been so to this point, it’s not going to be what really help you. The only accomplishment so far has been writing down your numbers and getting an organized list together. The fundamental principles of cash management haven’t begun to be applied yet. When you get to that stage in the process, you will begin to make some changes in your finances and in your decisions. More importantly you will come out with a new view how to handle your money and how to avoid the traps and pitfalls that surround you.

Usually immediately following the previous task of itemizing debts, people tend to get a little down and discouraged. Do not let this happen to you. There are reasons beyond your control that have ensured you would be in debt at this stage in life. We have an education system, in both Canada and the United States, that has completely failed at educated its citizens on personal finance and money. The average consumer is also pinned up against thousands of companies who are cleverly enticing you to believe you need to separate yourself with your hard earned money in exchange for their latest and greatest gizmo.

So the reality is, it’s not your fault. That doesn’t excuse from taking responsibility to end the pattern of going further into debt and get out of debt completely. It does, however allow you to not beat yourself up over it.

• File Size:783 KB
• License: Resell Rights
• Category:Ebooks
• Tags:2010 Ebooks Resale Rights