The Importance of a Healthy Budget

You’ve heard it once, you’ve heard it a thousand times: if you want to achieve financial security, budgeting your money is the only answer.

If you find yourself needing more motivation, here are a few good reasons to start budgeting.

If you’ve set a tight budget and are in the market for a home, it’s time to enlist the help of the top real estate broker in Los AngelesVisit Century 21 Peak today and get in touch with our team!

It Helps You Work Towards Long-Term Goals

Have you ever dreamed of:

• Going on vacation

• Buying a new car

• Buying your own home

If you answered “yes” to any of these questions, you will need to set a budget! A big part of budgeting is mapping out your goals, keeping track of your progress, and learning to make your dreams a reality.

It Saves You from Spending Money That You Don’t Have

The average US household owed $8,683 in credit card debt in Q1 (Jan-March) of 2018. That represents a number that has been steadily rising for years. These days, people who overspend using credit cards often don’t realize what they’ve done until it’s too late.

On the other hand, when you create and stick to a budget, you know exactly how much you earn and how much you have left to save vs. spend at the end of the month.

You’ll Have a Happy and Secure Retirement

If you set aside a portion of your earnings each month to contribute to your IRA, 401(K), or other retirement funds, you’ll build a nice cushion for when you reach retirement. You’ll thank yourself later when you have leisure time and freedom to enjoy your Golden Years.

You’ll Be Prepared for Emergencies

Some of life’s surprises can lead to unexpected financial turmoil. This is why everyone needs to have an emergency fund.

You should budget for a fund that holds at least three to six months of living expenses. Don’t worry – you don’t need to dump all your money into this fund at once. Just $10-$30 a week can add up quickly.

It Forces You to Re-Think Your Spending Habits

There’s nothing like starting out with a new budget to shine a light on existing spending habits. You will probably notice you’re spending money on things you don’t need. Two visits to Starbucks a day? Really? What about that extra pair of shoes (the third this month?) Budgeting gives you room to re-think your spending habits while you re-focus on your goals.

You’ll Sleep Better at Night

No more tossing and turning, worrying about how you are going to pay the bills. Following a budget will help you catch more Z’s by giving you back control over your finances, rather than letting your spending control you. Be at peace knowing your life is in order!

Real Estate Broker in Los Angeles

The Peak Corporate Network is a full-service umbrella organization whose entities handle Real Estate, Finance, Mortgage & Loans, Insurance, and Renovations. Reach out to Century 21 Peak today to learn how buying a house isn’t nearly as difficult as you thought, as long as you have the right real estate broker in Los Angeles.