There Are Two Parts To Your Budget Equation

Reasons to Add Fun Money to Your Budget

Many people only consider reducing their expenses when times are tight. But, there is only so much your budget can take in the way of belt-tightening. There are two sides to the budget equation. Another way to tackle the problem is to look at the other side of the equation. You can help your struggling finances by increasing your income as well. Understanding The Accounting Equation Or Budget Equation On the first day of an accounting class in college, the professor put the accounting equation on the board. It is an equation that drives the financial world. Assets – Liabilities = Equity. To put it another way in a budgeting aspect, your income – your costs = what’s left at … Read more

The Little Expenses Incurred Can Quickly Add Up

Coffee can be a budget buster.I have to admit that when I stand in line at the grocery store (or any store for that matter) that I am always tempted by the impulse purchases in the racks by the checkout counter. What’s the harm in those little expenses incurred?

It is only a dollar or two, right? But, those dollars add up. It is the little expenses in our lives that can really get us into trouble and knock our family’s monthly budget out of whack if we are not careful. The little expenses add up over time.

We Study Large Expenses Incurred

We bend over backwards to find a great deal on a new car, when we buy a new home, or even a large purchase like a new television. But, we tend not to think about the small purchases we make.

I think that it is almost the equivalent to pigging out at a restaurant and ordering diet soda. Far too often we think that we are being good financial stewards of our money be studying the large purchases we make to death.

Read more