I was thinking about starting off with this post but when I started the site up and started looking around it became pretty obvious to me that the people who are already looking into finances are already doing some sort of planning and budgeting or at the very least hoping to do more. But why is it important? Well very simply if you don’t know where you are and what you’re trying to achieve you spend all of your extra money on things that you don’t need or in some cases don’t want. The worst situations are when you don’t even know where you spend the money (but that’s a different story)/p>
I started budgeting a few years back to little avail but at least I started getting my bills paid on time. This for a person who is in debt and struggling with it is probably the very first benefit. Why do you ask? Well once you know where you NEED to send your money it becomes more apparent what you’ve got left over. Even if you end up spending it you will realize at some point that going beyond that certain amount you’re going into debt.
Once you get your debt under some semblance control even if you’re not making headway you do get one additional benefit: you won’t go further into debt.
But once you mix budgeting with some longer term planning you’ll make headway whether it’s to start accumulating assets or to get yourself slowly out of the hole. Initially my goals are pretty simple and that is to get out of debt so I have some additional money to work with to accumulate assets. Having an end goal or a plan will allow you to see where you’re going and note the progress as you slowly get there. Remember even slow achievement of your goals and plans is achievement!