Monday, May 14, 2012

Do I really need a budget?

I don’t care if you make $20,000/year or $100 million. If you can’t budget your money, you’re going to end up broke.

Think I’m kidding?

MC Hammer once filed for bankruptcy.

Ed McMahon had his home in foreclosure before he passed away.

Nicholas Cage owned multiple residences and several were foreclosed on.

And let’s not start with the countless athletes who make it big, only to crash and burn in the financial trenches.

It may sound a bit nerdy but everyone needs to budget their money. I don’t care if you do it bi-weekly, monthly, or even a rolling yearly budget (or for the super nerds out there, the ten-year budget!). Spend a few minutes and write down everything you pay out for in bills each month (or if there are some things you pay annually or quarterly, write them down in a separate piece of paper).

Once this is done, tomorrow we’ll start the next stage of budgeting.

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