Here is an excerpt from Bank Magic: Financial Literacy for Young People written by TaxAssurances’ owner, Kolonji Murray. The full book can be purchased on Amazon for Kindle and in paperback.
QUESTION: Why are budgets so important?
ANSWER: Budgets help to ensure that you cover all of your expenses, pay your creditors on time, and save, invest, and make money for the future. You will be surprised at just how fast money can go through your pocket without a plan for how you will spend, save, and invest it. So often, people think of budgets as being restrictive, but budgets actually give you the freedom to track how much you spend and to adjust your habits so that you can make better financial choices in the future.
QUESTION: What happens if I go over my budget?
ANSWER: it’s OK! Fortunately as a young adult, you don’t have to worry about big financial responsibilities, like a mortgage or car payment, for now. If you spent a little more than you expected, find out where you can cut back or adjust your expenses until you receive your next allowance or paycheck. Maybe you can cut out one day at your favorite pizzeria or a drink at Starbucks. Little things add up. You can also download spending apps to help you track your expenses.
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