While it is possible to use your paycheck to pay bills as they come along, you will definitely run into complications if you don’t plan your finances. Budgeting is simply a way of anticipating all of your regular expenses so that you can put away additional funds for emergencies. For adding money to your savings account to paying off debts, a home budget calculator is crucial for seeing what your financial situation is really like. If you consistently struggle to meet all of your financial obligations and you never seem to be able to put anything aside for a rainy day, now is the time to start planning ahead for 2018. Here are the four most important reasons you should change your financial outlook in 2018.
1. It’s Going to Get Harder to Borrow Money in 2018
Interest rates are going up, so banks are getting tight about who they lend money to once again. If your goal is to buy a car, a boat, a house, or anything else that you won’t be paying for upfront with a cashier’s check requires financing. Financing requires you meeting stringent credit and personal finance requisites.
2. Tax Breaks Are Expected to Be Reduced
If you’re one of those people who look forward to tax time to get a great big refund check from the IRS, you really need to budget better. Statistics show that those who are reliant on income tax refunds are only a few steps away from complete financial ruin. Besides, the federal government is making it harder for taxpayers to underreport their dependents without penalty. In the end, you’ll probably have a little extra money on each of your paychecks, so why not learn to manage your money better now?
3. Inflation, Inflation, Inflation
In 2018, you’re going to pay more for a box of cereal, your healthcare premiums are likely to go up, and gas is almost certainly going to be more expensive. On the other hand, your pay isn’t guaranteed to increase, but you are still going to be paying the same kinds of expenses. Use a budget calculator to plan ahead, control your finances and make 2018 an extra special fiscal year.
4. Create A Sense Of Urgency
When you aren’t able to complete a task the same day that you start it, you might tell yourself, “there’s always tomorrow.” Putting things off consistently leads to procrastination, which is not a good step to take if your goal is to become financially responsible. There are tons of people who are making New Year resolutions, and only a tiny percentage of them will still be on track to meet their financial goals by the end of January. Don’t be one of those people who have good intentions, but never end up finishing what they began.
Make 2018 the best year you ever have on the financial front. Look over your finances now and create a budget that you can start following on January 1st. By the end of next year, you will be a pro at managing your money.