The perfect alternative to a budget!
Carroll County, MD Series part 1
Blog Series: Discover how to get your financial house in order Carroll County, MD.
Budget often brings to mind tightening the belt. Debt, now there's a four-letter word. Is debt a bad thing? Not unless you perceive it that way. Most people have debt because they chose to make a large purchase. A car or home.
Do you have a spending plan? Consider Freddie Mac Credit Smart . It’s a great guide to money, credit and future planning. You should have a spending plan. Essentially a spending plan is planning where you will spend money in a way that benefits you and your future goals.
Have you been on a vacation in the last 5 years? Did you wake up one morning in say, May, hop in the car and go? If you have children, the idea of dropping everything and going at a moments notice is not likely to happen. Children over the age of 5 will be attending school. Your employer would not be very happy either.
First you decided where you wanted to go, how you would get there and where you would stay. Next maybe you decided how you would make the most of your vacation. Will you visit a beach, lake, museum or zoo? How about a what you will need to take along? How about who will go along?
Here’s one example of a vacation for 4 to Orlando, Florida from Baltimore, Maryland.
Where: Florida - Airfare for 4 from Baltimore to Orlando $3847.84
Transportation: Rental Car - Chevy Cruze - 6 days $846.03
Shelter: Hotel - 5 nights - $219 per night $1,095.00
Food: 3 meals a day plus drinks - $800.00
Entertainment: 4 Day theme park tickets for 4 - $1,299.32
Miscellaneous: Gas, souvenirs, emergencies, etc. - $1,500.00
Total: $9,388.19
So how did you plan your vacation? Did you go online and book individual services yourself? Did you call a travel agent? Either way you have decisions to make. Maybe after looking into it you realized Orlando would be too expensive. Maybe, Deep Creek Lake or Ocean City, MD would be more manageable, they both offer cool things to do. You could drive your own car and save the airfare. Sure it's not the same experience but, it’s a vacation right? Vacation is about having fun with family or close friends right? Is the destination more important or the company you keep and memories you make?
A spending plan works the same way. You decide how much you will spend in each area - where you will live, what type of shelter (own a home or rent), transportation to work and services, food, essentials (power, water, clothing) and extras. A spending plan also helps you plan for the future and create wealth.
A spending plan is really very simple when you stop an look at it. It’s dollars and cents and you are taking control.
Blog Series: Discover how to get your financial house in order Carroll County, MD.
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