Phil's Personal Finance Tip of the Day:
Build a Better Budget in 2013
A good budget helps you reach your goals and frees up money for an occasional splurge.
By Jessica L. Anderson, Associate Editor
From Kiplinger's Personal Finance magazine, January 2013
Lose weight. Go to the gym three times a week. Stick to a budget. Our New Year’s resolutions can end up feeling as restrictive as a straitjacket, so it’s no wonder we often don’t follow through on them. But budgeting doesn’t have to handcuff you. Instead, it should give you permission to spend on what’s most important to you. “Personal finance is more
personal than
finance,” says Tim Maurer, a certified
financial
planner in Baltimore, Md. “And nowhere is that more true than in budgeting.” You make the rules, so craft them to help you succeed.
Set goals. Working out a theoretical budget is great. But if you’re having trouble putting it into practice, you may lack motivation. Discipline is easier to embrace when it comes with a reward. Your goal might be to save enough money for a Caribbean vacation or a down payment on a new crossover. Or maybe you just want to stop living paycheck to paycheck.
If you have a big monetary target -- say, to save $30,000 for a down payment on a house -- break it into smaller goals so that you can see the light at the end of the tunnel. Farnoosh Torabi, author of Psych Yourself Rich, advises sharing your goals with someone; like going to the gym, financial goals are easier when you have a buddy to help keep you on track.
Read more at
http://www.kiplinger.com/magazine/archives/build-a-better-budget-in-2013.html?si=1#kJuT9vt7iiFBkyFI.99
No comments:
Post a Comment