Budgeting 101
The dreaded “B” word strikes fear into the hearts of many Americans. After all, to even speak of creating a budget must mean that you are a cold, frugal, cheap, fun-hater. Right? Wrong! On the other hand, establishing a sound budget can reduce pressure from debt collectors, put you on the path to financial independence, and actually allow you to do more things you want to do now and throughout retirement. Budgeting 101 may sound like the most torturous college class you have ever taken, but look on the bright side: it’s free, it’s not a boring 8am lecture across campus, and the only one grading is you.
If that pep talk is not enough to sell you on the idea, then let’s introduce some facts that may change your mind…
- Over 40% of American families spend more than they earn each year
- Personal bankruptcies have doubled in the past decade
- 1 in every 35 US households filed for bankruptcy in 2007
- American consumers owe approximately $2.6 trillion in consumer debt, or $8,500 for every person living in the United States (Did we mention that figure does not include mortgage debt?)
- If you opt to pay the minimum amount required on a $1,000 credit card charge, it will typically take over 20 years to pay off and cost over $2,000 in interest alone
We sincerely hope that these eye-opening facts prove to be enough for you to read on. If you are ready to defeat the statistics and take control of your financial well-being, we welcome you to our Budgeting 101 lessons.
