Budget Your Money Now — Budgeting 101 Tutorial
Many experience problems as they climb the income ladder. For instance, the more money they make, the less cash flow they seem to have. This is where the “budget your money” mantra should dominate your thinking. You should ask, “why don’t I have more disposable money if I have more income?” What is partially to blame is not considering higher taxes and disproportionately higher costs associated with primary items as we make more money. The first thing many of us think of is getting a more expensive home or car when our income goes up. That is ok as long as the cost of the new items is not out of proportion to our take-home income, and we can sustain the added payments if our income is threatened with a loss in some way.
There can be a fragile balance between income and spending if you don’t budget your money; we just have to figure out where we actually stand. This, my friends, is where budgeting or a budget analysis comes in. Your analyses will give you the delicate balance between taxes, mortgages, car payments, savings, investing, retirement, necessary expenses, and incidental expenses.