Panic budgeting vs Planned budgeting
I find it amusing when I often hear people say to me that they can't pay their fees because the water bill is due this week. Or somehow, out of the blue, the rates notice appeared and if it's not paid by the end of the week interest will be charged. And, how many times have we heard people getting their phone lines cut off because they haven't paid for the past couple of months.
The definition of "Panic Budgeting" is spending every cent your earn until you're forced to part with it from another party. "Planned Budgeting" on the other hand is to ensure there is always enough cash in the bank to pay bills as they fall due. Is planned budgeting a utopian ideal or is it possible for mere mortals to do this?
Budgeting is a discipline which interpreted into English means "it's going to hurt and create pain to learn." If budgeting was easy we would all be doing it and blog posts like this would be superfluous. However, while it may be painful for a while planned budgeting is only a temporary hiccup. Panic budgeting if not resolved will plague you for the rest of your life because no amount of money can satisfy people that don't know how to use it.
I know people eaarning $100K per year who have to scrape together a few dollars to pay a bill. I also know single mothers earning less that $25K who are paying off a mortgage always have enough and never go without. The difference: planning where your money goes.
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