Effects Of Budgeting Money

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Budgeting your money Money is valued thing now of days, it can either make or break you. As a person living on this earth, it is very hard to live without money in your pocket. The effect on not budgeting your money could really hurt anybody. Sara, an only child, has been practicing with her family saving and budgeting her money over the years. Sara’s parents made sure she was able to have enough money for college. She also saved money so she was able to have her essentials for college as well as extra-curricular activities. As a sophomore in college, Sara had a group of friends who have not only taken her time away from college, but they also left her hanging dry of money. According to Cecillia Barr, “The latest studies say …show more content…

Debt is money you have spent that is not yours. Sara had not even imagined what it could do to hurt her, so she just let it pass by like it was nothing. Sara had the chance to help control her debt and budget her money, with these four steps she could have used: 1.) record her daily spending’s 2.) Plan for upcoming expenses 3.) Look for ways to spend less money 4.) Find a way to boost her money/income. As a college student it comes very easy to spend all of your money. Sara and her group of friends loved to party and have fun every day of the week, what Sara didn’t know is that they were using her money to buy their supplies. According to the Simple Dollar, “As of early 2015, the total outstanding consumer debt in the U.S. has risen to $3.34 trillion. That figure includes car loans, credit card debt, personal loans, and student loan debt — but not mortgage debt. (That would add another $8 trillion to the pile.)” (Johnson). This shows that Sara is typically not alone in her care when it comes to having trouble with saving money, budgeting it and keeping it away from debt. Although Sara had a rough time when she had fallen into debt, she realized how important it was to get herself out of

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