Personal Budgeting

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Is it possible to save enough so as to build wealth? Of course it is! Savings is the basis of capital formation. And you can't own the future without capital.

The key to saving regularly is budgeting. Know where every penny you earn goes.

Create a budget. Track your income and expenses. Should your expenses exceed your income, look for a second job or other sources of income. You should have a budget regardless of whether you think your income and expenses are small or too petty to bother with. People have different needs, different lifestyles--no one's budget is identical to anyone else's. Account for every dollar that you earn. Next, you must have a clear idea of where,when, and how you spend your money.

Review the financial write-ups, articles, and columns, and pick up the different saving techniques other people use to their advantage. An incessant search for financial opportunities also improves your chances of opting for the best outlay for your savings.

Although a budget is a necessary tool, don't obsess over it. Just be familiar with what causes people to stay poor: frivolous and impulse spending. False pride and lack of humility drives people to attempt to impress co-workers and neighbors.

Save for emergencies. Always have a little reserve. If a crisis hits you, you'll be able to deal with it, having the peace of mind that you do have some resources. Imagine someone losing his job and no savings at all! During emergencies, the last thing you want to do is turn to credit cards for money.

Savings is a virtue. Using credit cards is a sin.

Debt Financing




Credit Scores




P/E Ratio, Crystal Ball




Current Liabilities




Adam Smith and Wealth



Personal Budgeting

Senada Selmani, model

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