American Consumer Credit Counseling Explains Why Budgeting is Important

A budget is the cornerstone of responsible financial planning. It shows exactly how much money you have and where it’s being spent.

It is easy to spend money today without thinking about what you may need tomorrow. Most people find budgeting annoying, overwhelming, and daunting. It is important to remember, however, that budgeting is one of the key aspects to financial success. To help consumers with the process, American Consumer Credit Counseling has provided several tips on how to create a budget that fits your life.

“A budget is the cornerstone of responsible financial planning. It shows exactly how much money you have and where it’s being spent,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “By creating a budget, you can find ways to save money and plan for whatever you may need in the future.”

Although there are many kinds of budgets, funds allocated for emergencies are often neglected, and cause the most worry. If a consumer is concerned about their lack of an emergency fund they are not alone: more than 69 percent of Americans have less than $1,000 saved for emergency expenses according to a GoBankingRates survey. Only 15 percent of respondents reported that they had more than $10,000 in their savings accounts.

American Consumer Credit Counseling offers advice for building a budget:

1. Create a budgeting worksheet – A budgeting worksheet helps consumers outline their budget and customize a spending plan based on their income and needs. By putting a budget together on a worksheet, it’ll be easier for consumers to make the right financial decisions.

2. Maintain good spending habits – Consumers should determine how much they spend in each category, such…

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