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Budget Cost

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Submitted By red1234
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It helps you keep your eye on the prize.
A budget helps you figure out your long-term goals and work towards them. If you just drift aimlessly through life, tossing your money at every pretty, shiny object that happens catch your eye, how will you ever save up enough money to buy a car, take that trip to Aruba or put a down payment on a house?
A budget forces you to map out your goals, save your money, keep track of your progress and make your dreams a reality. OK, so it may stink when you realize that brand new shoot 'em up Xbox game or the gorgeous cashmere sweater in the store window doesn't fit into your budget. But when you remind yourself that you're saving up for a new house or school, it will be much easier to turn around and walk out of the store empty-handed.
It ensures you don't spend money that you don't have.
Far too many consumers spend money they don't have -and we can owe it all to credit cards. As a matter of fact, the average credit card debt per household reached $8,329 in 2008, according to an April 2009 Nilson Report.
Before the age of plastic, people knew if they were living within their means. At the end of the month, if they had enough money left to pay the bills and sock some away in savings, they were on track. These days, people who overuse and abuse credit cards don't always realize they're overspending until they're drowning in debt.
However, if you create and stick to a budget, you'll never find yourself in this precarious position. You'll know exactly how much money you earn, how much you can afford to spend each month and how much you need to save. Sure, crunching numbers and keeping track of a budget isn't nearly as much fun as going on a shameless shopping spree with the MasterCard. But look at it this way: when your spend-happy friends are making an appointment with a debt counselor this time next year, you'll be jetting off…...

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