How Budgeting And Spending Habits Essay

How Budgeting And Spending Habits Essay

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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, and
apply the information to their own situation. One can start by using a personal balance sheet to see if
your monthly income covers all your monthly expenses. is a great tool to use or you can hire a
professional planner. Then you can move on to developing a cash budget. Use your income statement to
compare to your balance sheet. This will help you monitor your incoming cash with what you spend and
see where you can save. This is a good time to look for ways to cut down on spending and increase your
savings. (Keown, 2015)
To increase your savings you need to learn your spending habits. You can set spending goals by
having a budget. A budget can help you be smart at spending by setting estimates for all your upcoming
expenses. A budget can also help you with specific financial goals. Bad spending habits need to be
under control also to increase savings. Some things to avoid are: spending money that is more than
your monthly paycheck and spending money that yo...

... middle of paper ...

...ach job change contributing to
an IRA would not require any movement to another holding spot for my money. I can also add more
money to it as I obtain bonuses at work.
In conclusion, to live your personal lifestyle while working and when you retire you need to plan and
be knowledgeable. This includes having a monthly budget, making smart spending habits, making wise
choices and being informed of loans and borrowing, protecting yourself with insurance, taking
advantage of stock and mutual fund investments, and careful planning of retirement. (Keown, 2015)

Running Head: A Fool And His Money Are Soon Parted
Thomas Tusser

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