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BudgetingBudgeting is the simplest form of money management. It's not the most exciting part. In fact, spending, and even saving, beats budgeting by a long shot! But it is one of those things that gets easier (once you've done it).
Budgeting is like going to the dentist. It's a tough call, but you know it's doing you good! |
Can I afford it?
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Making a budget means you recognise that your money supply is limited - and that's not fun! It almost certainly means that you want to do lots of things you know you may not be able to afford.
The good news is that once your budget is made up, it will stop you from worrying about whatever spending you're going to do, and that should make it all worthwhile! |
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Yes I can!
A budget will almost certainly show you that there is enough money to do the things you want. You may have to save over time to achieve them, even wait a little. You may have to buy something in parts rather than right away - your game collection, for example, or a new outfit!
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No I can'tIt's not always easy to put off doing something you want to do or buying something you think you need. We live in a world of promises. Get it now - pay later! Put it on a credit card! Worry about it when the bill turns up!
If you go along with this approach, you'll almost certainly suffer from bad budgeting habits. You may get someone to help you out because you're young or you don't know any better - but unfortunately this will change. In the real world, the people who will help you may want some money to do so. Above all budgets require self discipline |