Since we are discussing budgeting, we might as well see how it can help an individual during this time of economic hardship. It is probably the best tool that will get you through this financial crisis we are in right now, because we need to save as much money as we can by cutting down on expenses that we don’t need. A lot of people and the country as a whole is going through a dark period right now, the economy is still trying to make any meaningful recovery that will assure everyone that the worst is behind, but before that, we have to make some serious adjustment to our finances. Jeff Nelson gives examples of areas that can make your life a living hell in the future, if you do not do something today, regardless of your economic situation.
During this time of economic crisis budgets have become an essential part of almost every American life’s. With so many huge financial companies such as A.I.G and Frannie and Freddie Mac having trouble, it may seem like there is no end in sight. At a time like this, budgets for every aspect of your life may seem like a reasonable idea. Okay, that may seem like jumping to conclusions, but there are a few different aspects of your life where budgets can really help.
The first aspect of your life where budgeting your money may help is when you are establishing a college fund for your child. College is extremely expensive; this is just another reason as to why you should start a college fund right now for your child. During this time it may be very hard to think about setting money aside to save for your child’s future but it is very important. At a time like this the safest place to keep money is in a savings account. Although the interest rates are not very high for a savings account, savings accounts are one of the safest places to save money, due to the instability of the stock market. One of the hardest things to do during a time of economic hardship is to restrain yourself from taking money out of a child’s college fund to pay for other necessities, it is crucial that you do not touch this account having a college education is priceless in today’s world.
Another essential place where budgets are necessary is when you trying to pay off credit card debt. This is a time when you don’t want to fall behind with your credit card payments, falling behind with credit card payments during this economic crisis will only end up severely damaging you for the future as far as your credit score. The best way to deal with credit card spending and payment is simple; don’t spend money that you don’t have. That means that you will always have the money to make payments to your credit company, and won’t end up in bad standing with credit companies.
This is a time where it may pay in the long run to start purchasing products that are store brand. This can save a lot of money when you are shopping on a budget. Many people believe the common misconception that store brand products are not as good as brand name products which is incorrect. This idea of switching from brand name to store brand should encompass your whole life, not just with beauty or grocery products. If you can make the switch over to store brand products it can save you hundreds of dollars a year, and who wouldn’t be happy with a few hundred dollars extra without any serious sacrifice.