Budgeting, How Does This Work?
Budgeting is when you figure out your income and your expenses and plan off what is left over from your income after you pay for the necessary expenses. It is a good way to save money so you can avoid debt. You take your income after taxes, pay for your necessary expenses and plan accordingly with the money left over to pay for fun things or other little things you need. The most important thing about budgeting is to ALWAYS PAY YOURSELF FIRST!!!! Your paycheck and budgeting is no good for you if you aren't paying yourself first and spending all your money on random stuff.
Is This Important? Why Must I Know This?
This is probably one of the most important topics on this page purely because everyone has to handle money during their lives and it is important to know how to manage your money correctly. A helpful system is the envelope system, it is where you assign money to an envelope and continuously put money into those set envelopes and you do not spend the money assigned to the envelope on anything but what it is assigned to. It is also a great way to motivate yourself to save for something because you can physically see the progress, not just the numbers go up in your bank account.
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