Having a budget is a necessary step into reaching financial freedom. Financial freedom, in this case, does not mean having the capacity to buy luxuries a moment’s whim. It instead means that there is no constant pressure to live in comfort from month to month.
Why Is Having A Budget Important?
In an episode of “The Dani Johnson Show,” Dani claimed that some 98 percent of the public does not necessarily know where their money goes. This is largely due to the idea that if money is not properly kept track of, it will be used for things that are easily forgotten. She went on to point out that money is important to success, whether there is too little or too much of it. However, Dani also said that it does not depend on how much is made. Instead, it relies on how much of the money is kept.
The trouble with spending is that often times, we do not know what we’re spending on. For standard things like life insurance, there are often underlying clauses. This often includes things like investment, which sound good on paper. But sometimes, these are unnecessary things. What you need to do in this case is learn the details. Or you can reach out to someone who will actually sit down and talk you through it.
It is also vital to have a financial vision and to keep it within focus. Every time a new sale comes in cannot be a reason to spend in the hope of saving in the future. This hardly ever works. Spend for only what is currently necessary in order to steer clear of any and all distractions.
According to Dani, it is best not to make room for excuses. It is never smart to succumb to the pressure of convenience when it comes at a financial cost. Most people will reason that they get home late, cannot make dinner and have to order food. The fix is to plan ahead, even if this means making meals in the morning that can last until dinner. Then the only issue to heat it up for the family.
She also advised strongly against relying on unsteady income. Looking for a source of income that is stable is key because it is a big part of the planning and carrying out a successful budget. If you want to start a business, it is a risk to quit your day job and focus on it. Make small personal steps on the side without sacrificing that comfort.
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