We need money for everything in life. You need money from basic necessities to vacations, homes and cars. As we age it seems you need more of it because costs go up especially for Medicare costs.
Did you know budgeting will help you have enough money for all aspects of life?
Have you ever woke up and say, “where did my paycheck go?”. We swipe here and there and it takes a couple of days for it to clear so it so easy to over spend. Now we can just tap our phones and spend money faster.
To start first, you need to know the difference between needs vs wants. The difference between wants and needs is: Needs is necessary and want is desire or wish for.
Needs fall into 4 main categories, food, shelter, transportation and utilities. Cable, Hulu, Amazon, Apple Tv is not really a need. You can survive without it. But you do need to eat, have a roof over your head and transportation to get to work and, as well as lights and heat.
Short list of common expenses that fall under needs are
Housing
Transportation
Insurance
Gas and electricity
Food
Clothes
List of wants
Fast-food/Restaurants
Electronics
Travel
Designer Clothing
Coffee Drinks
Entertainment
Hulu, Netflix
Magazine subscription
Jewelry
Video games
Categorizing between needs and wants will help you when creating your budget. You will realize what you are overspending on or what you can but back to accomplish your goals.
I want you to budget your money so you can be free: to pay off your debt, to go on vacations, buy yourself something nice, enjoy a Christmas without worrying where will the money come from or a bill you have to pay later. Be free to help your parents out or give more to your favorite charity.
Tell me what wants you can’t live without?