Your Choice Blog #2

The article I found was called ‘6 Steps To Better Budgeting’. In this article it teaches you how to budget better and in the most benefiting way. The six steps to better budgeting include: 1)Track your expenses, every time you purchase something whether it is one dollar or fifty dollars it is always important to write it down. 2)Think ahead, you know that Christmas is coming therefore you should put some extra money away for unexpected gifts. 3) Budget for savings, try to save as much money as you can.4) Build a buffer. 5) Project cash flow, make a projection of your household after-tax income over the next few years. Factor in expected wage increases, but be realistic and be sure to account for any increase in taxes that would result. 6) Cut expenses until cash flow is positive.

This article is written from one’s perspective. It is written by someone who thinks these are the most useful tips as far as budgeting goes. I think this information is accurate because if someone was to do all these tips I can almost guarantee they would be successful with their budgeting. Although, I have not tried these tips before, reading what they are and what to do it seemed to me that it would work.  The purpose of this source is to teach people how to properly budget their money and become successful in doing so.

This article relates to me because I will soon be starting to make a budget sheet because I have lots of expenses that I need to start saving up for. I also will have many things that I have to buy coming up, such as gifts. Therefore,  I need to plan out how much I am going to spend and how much I am going to put away with this months income. This article relates to personal finance because we spent a whole unit talking about budgets and the importance of budgeting. We also did a major project on budgeting. It is very useful, especially if you have lots of expenses you need to pay for. I think it is important for everyone to know how to budget their money.


Source: http://www.investopedia.com/partner/quinstreet/articles/personal-finance/112414/6-steps-better-budgeting.asp

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