Living within your means

I have talked to many people who feel being on a budget is like having a straight jacket on and someone telling them what they can and can not buy with their hard earned money. That is not the case at all. Living on zero based budget is merely a tool that helps you to live within your means.

Living within your means is defined by the financial experts as saving some of your paycheck each month and having no debt. The Federal Reserve did a survey of consumer finances in 2001, and the survey showed that about 14.5% of Americans consistently spend more money than they make. These people are in pretty big trouble. That is one of the reasons why we are in the situation we are in now as consumers and as a nation. 26.3% of Americans spend as much as they make or more. According to studies many Americans actually spend $1.22 for every $1.00 we make. That means we are going in to debt an average of 20% for every pay check we make.

If you can find a good financial advisor who will guide you through a zero based budget process, it is really not bad at all. It is merely spending every dime you make on paper on purpose before the month begins. A budget removes the fear of being in the middle of the month and not knowing how you will get to the end of the month. A budget helps a married couple communicate better. A budget will cover every possible expense that would occur in time, so you are not borrowing from Peter to pay Paul. A budget is merely spending what you make and no more!

If you are in fear right now of getting through the next month and have debt up to your eyeballs the best thing you can do for yourself, your family and our economy is to get on a zero based budget TODAY! It's not too late. You have to start WHERE you are, no matter how bad you think it may be.