Why Is Budgeting Important To The Average Consumer?

Why is budgeting important to the average consumer? If you don't budget you are going to overspend and end up not having money to save. If you don't budget you are going to overspend and end up not having...

If you don't budget you are going to overspend and end up not having money to save. The #1 worst case scenario is that you end up spending more than you make. For a newly married couple, I would say the biggest pitfall that people fall into is wanting to have everything now. That's the way our American Society is set up and that's the way the media advertises it. There is a large percentage of the population unfortunately that falls right into that trap and they end up buying things that they cannot afford. Try to temper your enthusiasm for buying consumer items and stay within your means, and I would try to save some small amount from your paycheck. That really depends widely under the circumstances that the people are in and how much money they are making and so on. It depends on what area they live in and how expensive it is for them to live. A good place to start is 10% of your pay and some obviously aren't able to do that and some are able to do a lot more than that. It depends on how much you are making and where you live and what's your appetite for consumer items. Basically 10% is a good number.

© High Speed Ventures 2011