Thursday, December 4, 2008


I remember the times when our grandmothers noted their expenses each day in a big notebook with a black or green cloth cover. They also divided monthly family expenses (food, gas, clothing, electricity, etc.) in white envelopes to plan out the budget well. It worked for them, true. For me, well, I think the situation now is more complicated than before (or at least feel that it's more complicated now). Anyway, I know that I would definitely need more than black notebooks and white envelopes to do my domestic management accounting. With prices of basic commodities rising but salaries remaining the same, the budget always ends up deeply battered. When before, going into debt was like a form of disgrace, people can now freely resort to fast cash personal loans or to organized credit without feeling bad. Getting a cash advance, for the most part, brings hope to those who are hounded by unexpected financial difficulties and it's fairly acceptable.

In this regard, here are some points were can consider regarding budgeting and personal accounting to help us avoid getting into more serious financial problems:

1. Establish a precise and realistic budget. Lay down your plans and targets for the year.
2. Differentiate between needs and wants and what you can really afford given all available resources.
3. Take responsible for all your decisions. Pay what you promised to pay.

To summarize, the important points of a good budget boils down to accurate information, necessity vs. want and sense of responsibility.

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