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More information with thanks from..... |
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What's the point of a
budget?
A budget done correctly is the most precise
tool for analysing your finances imaginable. It answers two key
questions...
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Do I spend more than I earn?
An instinctive assessment is easy - if
you're eating up your savings or building up debts you're likely to be
overspending. Yet before you can solve this it's important to get an
accurate idea of the size and scale of the problem.
This is nothing new, after all Dickens' Mr
Micawber laid out the principle pretty well in the 19th century:
"Annual income twenty pounds, annual
expenditure nineteen six, result happiness. Annual income twenty
pounds, annual expenditure twenty pounds and six, result misery."
Major overspending can lead to a debt spiral and severe problems,
that's why the
Budget Planners are all designed to definitively answer this
problem and give you a real assessment of your finances.
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20 posts - 16 authors - Last post: 6 Aug
2007
forums.moneysavingexpert.com/showthread.html?t=469531
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