Tag "budget planning"
If your family is on a single budget, then you know the challenges that you face.
What prevents someone from taking your ID information and applying for credit in your name? They simply use your ID to apply for a loan, get approved based on your credit standing, have the money placed into their hands, and then disappear leaving you with the surprise of a monthly loan payment coming due.
There are two great reasons for keeping a budget —
Setting financial goals to stay out of debt requires short-term and long-term planning. Every expense and liability must be paid when due with current income, or people are forced to borrow money to pay their debts.
Many people aren’t sure when to spend their money and when to save it because they haven’t taken time to develop a long-range financial plan. When you have a budget, it becomes easier to save, as well as spend, without feeling guilty or obligated.
A job loss or a cut in hours at work can lead to a need to cut back on expenses to meet a home budget. While most people will need a negative experience to cut back, there are some who will do so voluntarily to save up for retirement, or an emergency fund.