Even Millionaires Need to Budget
Those are the words of Phillip Simon, the financial advisor of Oracle Corp. founder Larry Ellison. According to e-mails that were recently made public, the financial advisor seriously worried of his clients spending. This guy was frivolously squandering his money. $20m a year for lifestyle, $75m a year on accrued interest. $25m for a villa in Japan, $194m over 3 years for a new yacht, and the list goes on.
A personal budget is among the most important concepts of personal finance. In a personal or family budget all sources of income (inflows) are identified and expenses (outflows) are planned with the intent of matching outflows to inflows. There are a wide variety of personal budgeting methods and tools that can be employed to help individuals and families with the budgeting process.
This only reiterates the importance of budgeting. By creating a budget you will allow yourself to keep more of your money and know exactly where your money goes. A lot of people have this misconception that budgeting is only for the middle class, the ones who have to struggle to make life a little comfortable. Wrong. Budgeting isn’t only for people who are tight on cash, it’s for everybody. Whether you are wealthy or not, you need to learn how to budget.
Visit the budgeting archives at creditlovers.com and start your budgeting plans.
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