'B' is for Budget
Money management means you control your money, it doesn’t control you. It’s about ensuring that each dollar goes where you decide it should. This process is called budgeting. There is no one ‘right’ way to budget. Different systems work better for different people. The most important thing is to use a budgeting system that works for you and one that you will be able to stick to.
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There are three types of budget planners
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‘Once is enough’
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‘Look, don’t touch’
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‘Take control’
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Realism is important in all facets of budget planning
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Be honest
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Decide what’s important for you
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Place a high priority on regular savings
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Understand that even if you have a budget, unexpected things will happen
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Set yourself up for success, not failure
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Manage your debt
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Use all the resources available to you
Our booklet Faith, Family and Finances: A Lifelong Journey has much more information about budgeting. It contains helpful hints for each of the points above; discusses how much to you may want to budget for various items; explains ‘debt to income ratio’; and offers sample budget formats.
Contact your local Covenant Trust Company® Financial Services Representative if you have questions or want more information. [view Directory]
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