• Privacy policy
  • T&C’s
  • FAQ
  • Meet the Team
  • About The London Economic
  • Advertise
TLE ONLINE SHOP!
NEWSLETTER
SUPPORT THE LONDON ECONOMIC
  • TLE
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Food
  • Lifestyle
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
  • TLE
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Food
  • Lifestyle
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home News Finance

Why Should I Balance My Budget?

There is no single “best” way to conduct personal financial affairs.  In fact, since each person’s resources, experiences, and financial goals are unique, there are actually countless approaches to money management – some more successful than others.  While you may not exactly be able to copy another person’s financial success, it does make sense to […]

Guest Contributor by Guest Contributor
June 15, 2017
in Finance, News

There is no single “best” way to conduct personal financial affairs.  In fact, since each person’s resources, experiences, and financial goals are unique, there are actually countless approaches to money management – some more successful than others.  While you may not exactly be able to copy another person’s financial success, it does make sense to observe and learn from others’ experiences.  Because in the end, despite differences in the ways we address financial concerns, some practices (balanced budget) furnish universal benefits.

Personal finance tends to grow more complex as we age, accounting for various credit obligations and higher stakes than young people just starting-out, on their own.  To build on each success and establish a stable individual economy, it is important to master basic finance principles, before moving-on to more complicated matters.  Among the fundamentals, striving to balance your household budget is one of the most important financial commitments you can make.

Good Reasons to Find Financial Balance

Effective personal financial management balances income and spending, ideally covering all your living costs, with enough money left-over to establish savings and retirement investments. Though temporary imbalance is tolerable and can be corrected, consistently running a budget deficit leads to unsustainable financial conditions.  Consider the following reasons to balance your household budget:

Protect your credit rating – Without enough money to cover spending, month after month, debt grows, as you borrow to cover costs.  Over time, unmanageable balances can result in serious credit consequences, such as default, and lasting damage to your credit score.  On the contrary, maintaining balanced cash flow reinforces your personal strength of credit, keeping you in good graces with creditors and reporting agencies. To illustrate the importance of a strong rating, visit loan comparison sites like Readies.co.uk, where you can see the differences between traditional lending costs and the premium paid for bad-credit alternatives.  Balancing your budget and protecting your credit references are the only sure ways to protect future access to affordable financing.

RelatedPosts

Greta: ‘Completely unethical’ for rich nations to vaccinate young instead of helping poor countries

India finally added to coronavirus ‘red list’ hours after Johnson cancels visit

Rebel Super League clubs to net €300m ‘welcome bonus’ from JPMorgan

Investors set to approve Serco chief’s £4.9 million pay packet

Emergency coverage – In spite of your best efforts to anticipate costs, you’ll most likely be called upon to reconcile emergency spending dilemmas, at some point in your personal financial evolution.  A few examples of unexpected spending demands include:

  • Costly car repairs
  • Tax bills
  • Medical expenses
  • Home improvement
  • Legal fees

Maintaining a balanced budget ensures monthly obligations are met, with room for savings.  With stable cash flow, monthly surpluses can be reserved in an emergency, contingency fund, standing ready to bail you out in times of financial distress.

Build good habits – Spending discipline is at the heart of long-term financial security.  As a result, until you consistently spend less than you earn, it is hard to plan for the future and achieve your financial goals. Establishing a balanced household budget reinforces your immediate financial health, but it also helps you develop positive financial habits, which continue to support personal prosperity for a lifetime. And as a parent or spouse, your commitment to financial equilibrium carries-over to other family members, who learn spending control and the importance of budgeting.

“Find” disposable income – If you are like most money managers, myriad monthly demands are placed on your income. With so many obligations, it’s sometimes hard to track your status.  Balanced budgeting ensures all of your incoming resources are accounted for, helping you make the most of your earnings. By designating budget categories and establishing spending limits, it may be possible for you to uncover discretionary resources you didn’t know you had.

Although each family faces its own unique financial challenges, balanced budgeting provides across-the-board benefits. In addition to freeing-up earnings and providing a financial safety net, effective budgeting helps you build and protect positive credit references.

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Support fearless, free, investigative journalism Support fearless, free, investigative journalism Support fearless, free, investigative journalism

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending fromTLE

  • All
  • trending

What If We Got Rid Of Prisons?

Stress, fear and homelessness: The threat looming over families confronted with eviction

File photo dated 07/11/03 of a prison cell.

The Other Prison Pandemic

Latest from TLE

TLE drives: The Honda Civic Type R

Adam James: The lone wolf of Saville Row

Credit: Aaron Chown/PA Wire

Greta: ‘Completely unethical’ for rich nations to vaccinate young instead of helping poor countries

Set For Life Results Monday 19 April 2021

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

Contact

Editorial enquiries, please contact: jack@thelondoneconomic.com

Commercial enquiries, please contact: advertise@thelondoneconomic.com

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Lifestyle
  • Food
  • Property
  • Travel
  • Tech & Auto
  • About The London Economic
  • Meet the Team
  • Privacy policy

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.