Who Needs a Budget?

    I'm starting to see the importance of having a house-whole budget.  Most people don't really know how much they spend in a month or at least no clue on what they spend it on.  For some people this can become a path to devastation. If you are a good budgeter, having one and sticking to it, this is not for you.  Congratrulations you can move on to learning about interest, the debt pay down snowball and investing.

     I met with a family who assured they had a debt problem and the only way out of it was to sell their home.  After sitting down and just listening to their financial situation and  their reason for selling, was to pay off this loan, that credit line, ect, ect.  One of the largest loans was from the renovation they did on the house to get it ready for the market.  There was a $5,000 interior paint job and the walls ended up being pink.  Not saying don't paint your walls pink if that's the colour YOU want but the majority of buyers would not choose this as their fisrt choice and this is who your wanting to appeal to when your painting to sell.  

     It was quite clear they did not have only a debt problem but a budgeting problem. I'm sitting in the living room looking at a big flat screen TV, bigger then mine, but I didn't put my TV on some credit card that wouldn't be paid off in full from the money in the bank account to account for the purchase.  Big difference in using your credit card to build credit then using it to loan your self long term money, heck even short term has some risks of getting trapped in this majic money drug called credit.  Now this will sound crazy to a lot of you, here's this Realtor talking himself out of a commision and explainging to the current home owners different options to get their financial life turned around with out selling and loosing their home.  Well I belive and have experienced if you do the right and ethical thing, life has it's way of working things out with our dear friends called Karma and Blessings!

     Before spending a ridiculious amount of money on your credit card, have a game plan to save up for the purchase so you can own it rather then the things we buy owning us.  I'm sure there are people in your life that are successful financialy and can help you assit with setting this up.  Go to these trusted people that you look up to for advice becuase they have gathered the knowledge and experience that can help you turn your situation into a much better one.

Sincerely, John Mark