All Aspects of Life
Budgeting is a word most often heard referring to maintaining a healthy balance between paying bills and purchasing necessities and spending money on things not necessarily needed to survive. Financially speaking, most people make out a budget either in their heads or on paper that lists out the bills they need to pay in order to maintain their current lifestyle, such as rent, heat, car payment, insurance, credit cards, etc. And then there are percentages of income factored into savings and another percentage as frivolous cash; money to spend as extra perks in one’s day. Maintaining a healthy budget is the effect of personally ensuring financial stability throughout one’s life in order to help plan for one’s future.
Credit scores play a large part of the financial world and can hinder a person’s ability to purchase a car or a house or open a credit card, all of which are the sources of a credit score. By maintaining a budget that is able to actively pay toward any type of bill will allow one’s credit score to rise, and maintaining that stability in personal budgeting will ensure continual rises in creditworthiness. For example, opening a credit card with a small credit limit, using that credit card to make purchases that do not overwhelm one’s personal budget, and then paying off that credit card bill each month will ensure a high credit score and increase one’s chance of financial opportunity and success down the road in life; such as purchasing a car or a home.
A marriage between two people must include a personal budget of those two people, in addition to a joint, marital budget. A marital budget can lower stress between spouses and also will help each spouse’s creditworthiness when purchasing a house together, as both spouse’s credit scores are needed when purchasing any property. Budgeting between both persons will cause spousal financial security and will result in one less stress factor in the marriage.
Planning for retirement comes from years of budgeting and saving. Many people try and utilize company retirement savings plans to aid with their budgeting efforts, but for those persons not having that option, they use healthy budgeting practices in order to put money in savings accounts or invest in an interest yielding solution to better help plan for one’s retirement. The effect of planning for retirement is not having to worry about financial security at an older age.
Having and planning out a good healthy budget for all monetary aspects of life will guarantee a desirable outcome in present and future financial stabilities. Obtaining and continually upholding a high credit score in turn promotes healthy financial opportunities in the future such as purchasing a car, marriage, and purchasing a home. Correctly budgeting throughout one’s life and saving money will help ensure a financially stable retirement plan for when one is at an older age. Learning to correctly budget one’s finances is extremely important early in life in order to retain enough finances for one’s future.
