The Importance Of Personal Budgeting

The safest way to double your money is to fold it over and put it in your pocket. I think sometimes this is the best thing to do when learning of a new tax that I am going to have to pay or some expense that I did not plan on paying. In reality, a person does not want to stick their head in the sand but to plan short and long term goals so that he or she is prepared for an unplanned expense or retirement. This paper discusses budgeting and spending habits, loans and borrowing, insurance, stock and mutual fund investments, and retirement planning. Budgeting and spending habits require knowledge. A person needs to understand personal finance in order to protect themselves, understand how to plan for the future, make intelligent investments,

My long term goals would be to decide what major purchases I would need over the course of my life. I would want to save for property to build a house and a car.

Paying for property before building a house can save money and leave you more money for more house.

I also would open an IRA and deposit money in it at appropriate times as well as invest a sum of money for retirement. Borrowing money is something you want to avoid but there are times when you may need to. There are some choices to make. You can choose single payment or installment loans, secured or unsecured loans variable rate or fixed rate loans, and shorter or longer term loans. There are rules or qualifications to choosing each of these. Some of which are having an excellent credit history or deciding how long you want to make payments. A word of caution about payday loans: avoid them at all costs. Payday loans are given by check cashing companies that want customers who have jobs and checking accounts. Customers generally can get $100 - $500 until their next payday. These companies make their money by cashing your held check

1-2 weeks later and offering to “flip” your loan. This means the customer can pay another fee to

I invested money I inherited from my grandparents when I was in my 20’s at a low risk. I have been watching it and it has grown exponentially. I look forward to retiring. Maybe I will go on an African safari. Retirement is savings you should plan for if you intend to live the lifestyle you want. Social Security can be accessed at certain ages depending on when you want to retire. If you don’t want to live on a fixed income then you need to save money when you begin working. Setting up your retirement requires seven steps: set goals, figuring out how much you will need to save each month, figuring out how much you will need at retirement, include inflation, and how much you will need to cover it, how much to save yearly, and implementing your goal(s). Contributing to your employer’s 401(k) plan is a good way to save or using one of three types of IRAs: traditional IRA, Roth IRAs, and Coverdell

Education Savings Accounts. You will need to choose how you receive your funds when you