Having a budget is a golden rule of personal finance. Nevertheless, it is also one of the rules that are mostly broken by people, especially those struggling with financial problems. A clear budget is more often than not overlooked by people, which is why many of them end up broke, says Michelle Schroeder-Gardner, personal finance blogger at Making Sense of Cents.
The truth is, it doesn’t matter if you are rich or poor, a budget can help you either way. It can offer a clear picture of your income and expenditures, the areas that cause money issues and how to keep your finances in check, she adds.
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