East Side Lenders – Budgeting for the Wealthy

by Derek Sall on July 18, 2013

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Budgeting
I’d say that 95% of the population cringes when they hear this swear word: budgeting. But you know who doesn’t cringe or change the subject when this word comes up in conversation?

The rich. They look at budgeting in a whole different way. Instead of treating it as a limitation, they use it as a tool to get what they want with their money – states East Side Lenders.

Tell Your Money Where to Go

The majority of the population makes purchases like this – they see a product that’s for sale and begin to salivate. They then decide that they need it. Once the price tag is checked and they see that they have plenty of credit left on their card, they make the purchase.

For any person that does this, they certainly are not telling their money where to go. In fact, they are doing the exact opposite. They are letting the media decide what’s good for them, and as long as these individuals believe that they’ll have money coming in in the future, then they’ll purchase the item on credit.

The rich, however, decide what they want in life long before the media gets their attention. If they have a love for travel, then they’ll create a category in their budget that’s designated for travel. Once they have enough money in their designated fund for their trip, then they head out and have fun with cash, not on credit. They enjoy themselves, and it doesn’t cost them an arm and a leg in interest.

Proof of Where You’ve Been

For those that have been budgeting for some time, they begin to understand how much certain things cost each year and get a sense for the rising and falling fluctuations between their income and general expenses.

After a few years of budgeting takes place, one can really understand what’s happened in the past and how well they’ve done in their life’s plans. In other words, let’s say that someone has the goal of becoming a millionaire by the time they’re 40 years old. They begin their quest at 25 and by 30, they have $250,000 stashed away. I’d say that based on the future potential growth of their fund, they are very much on track for their goal.

Without budgeting, even if you would have gotten to this point, you would have no idea how you achieved it in budgeted detail. Actually, I believe that without a plan and a budget, you never would have gotten there, but that’s just me.

East Side Lender’s Roadmap For The Future

As I stated before, a budget is not a restraint. It’s a tool to achieve your future goals and dreams. Without a plan of action and a concrete listing of your income and expenses, there is no way for you to truly know if you’re on track for your future goals.

So many people are just floundering through life, hoping that they’re doing what’s necessary to retire someday, but the rich – they know. They have their plan down to the penny and can probably give you a specific date for when it’s going to happen. If you want to join the rich, you’d better learn to budget.

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  • MarthaJ

    look at budgeting as a tool that tells me the (bitter) truth about where my
    money is going. Sometimes it’s totally bizarre to find out that I can’t afford
    my favorite coffee more than twice a week. But then, >take a deeeep
    breath< keep calm and carry on toeing your budget.

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