Importance of Budgeting and Saving

873 Words Jul 29th, 2011 4 Pages
IMPORTANCE OF BUDGETING AND SAVING

Importance of Budgeting and Saving

Andrea N. Kirkwood

GEN/200

22 March 2010

Mr. Otis Langford

IMPORTANCE OF BUDGETING AND SAVING

Importance of Budgeting and Saving

Do you find yourself living from paycheck to paycheck, unable to pay your bills, struggling financially? If so, you are amongst the millions of people who suffer from these same issues everyday. One of the best ways for you to get on financial track is to establish a budget. What is a budget you ask? As defined by Merriam-Webster, a budget is “a plan for the coordination of resources and expenditures” or “the amount of money that is available for, required for, or assigned to a particular purpose”
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Another important factor to obtain financial stability is saving. Budgeting and saving go hand in hand. Saving money is a very important step in life to ensure the security of your future and budgeting will help you with your saving. Once you’ve completed a budget, you will be able to start on a plan for saving.

There are numerous options available to help people with saving. You have your standard savings accounts, Individual Retirement Account’s (IRA’s), 401(k) accounts and money market accounts. Also, many states now have plans that you can pay into to save for you, your children’s, or your grandchildren’s education expenses. You’ll need to figure out what it is you

IMPORTANCE OF BUDGETING AND SAVING

are saving for, whether it be education, travel, retirement, or a rainy day, and chose the right savings option for you and your family. Speaking with an agent from your bank or credit union, or with a financial advisor/planner will give you the necessary tools you need to make an informed decision on what savings plan will work best for you and that fits within your budget.

Finances are getting tough no matter who you are and where you’re located. Financial issues are probably one of the biggest stress factors among people today. In today’s economy, it’s very hard to maintain a stable household without having some degree of stress. When you find yourself in a financial bind or
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