Budgeting your Money - Debt and Impulse Buyers

Thursday, February 3, 2011

Many individuals have issues when budgeting their money these days. In fact, it is found that 7/10 people within the United States have debt due to spending issues. This could result from credit card abuse among other bills that may surface in life. Luckily, there are a few things you can do in order to prevent this from occurring. You may also be able to cut down the current debt you are facing as well. One rule that involves your budget is asking yourself just one simple question – “Do I really need this”? Let me give you a prime example of breaking the budgeting rules.

Sandra visits the mall with her family to shop for a birthday gift. Her spending budget is $30 and she already knows this. After she buys the perfect toy for her little cousin, Sandra walks towards the exit. Suddenly, she sees a beautiful red dress hanging for display. Without thinking twice, she pulls out her credit card – heading to the cashier with the card in her hand and the dress in the other hand.

As you can see here, Sandra is not managing her money properly. In order to start budgeting, the first thing she needs to do is get rid of the credit card. It should be a rule to never carry it with her, and only have on larger bills for the time being. Unnecessary items will more than likely get you into trouble. Impulse purchases are the culprit of most budgeting issues.

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