Importance of Budgeting

By Katherine Lordi - What budgeting is and why it is important no matter what stage you are in life!

What Is a Budget?

A budget is a plan for every dollar you have and want to save or spend. Budgeting helps us achieve financial freedom and not run out of money!

Why Should I Budget?

- Have less stress

- Helps you not overspend

- Stay out of debt or avoid more debt

- Save enough for future wants and needs such as a house, car, dog, etc.

- Many more!

Pay Yourself First!

In order to stick to a budget, pay yourself first! This means that before you spend, set aside money to save first. Saving at least 20% is good rule of thumb.

Everyone Should Budget!

Individuals and families from all walks of life budget! Let's meet some of them in the next slides.

Warren Buffett

Even though he is one of the world’s wealthiest and most successful investors and philanthropists, Warren Buffett lives on only 1% percentage of his billions. Buffett’s advice? “Spend what is left after saving.”

Katherine L From FinMango

Katherine is early in her career and wants to set herself up for financial success in the long-run! She keeps a budget using Google sheets and updates this weekly in order to ensure that she pays herself first, pays off any debt, and tracks how she spends her money using a spending diary.

Rob Gronkowski

NFL tight end and 3x Super Bowl Champion Rob Gronkowski’s (Gronk) budgeting plan involves living more on the frugal side. He revealed, “I live off my marketing money and haven’t blown it on any big-money expensive cars, expensive jewelry, or tattoos and I still wear my favorite pair of jeans from high school.”

Antoine Walker

Sometimes people who fall upon an immense amount of wealth go overboard with it. Antoine Walker, former NBA star, lost $108 million by gambling, buying luxorious items, and losing money by investing in real estate prior to the 2008 stock market crash. From Walker, we can learn that exuberent spending and not budgeting can have serious consequences!

What's Next On Budgeting?

Next Story: 50/30/20 Budget

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