Maestro

What Is a Budget? (2)

Another advantage of a budget is that it takes the guesswork out of some purchase decisions. Without a budget, the question, “Can I afford it?,” is often answered based on guesswork and wishful thinking. With a budget, you’ll know right away. For instance, suppose your sofa is getting rather threadbare and you see a really nice one on sale. A quick look at your budget balance will...

Maestro

What Is a Budget?

Some people say, “I’m on a budget,” and mean nothing more than that they are limiting their expenditures. “I can’t go to dinner at Chez Pierre’s tonight because I’m on a budget.” In that sense, pretty much everyone is on a budget—after all, how many of us can spend money without limitations?...

Maestro

Interpreting Your Net Worth

As I have mentioned, your net worth is important only as it relates to your situation. It is not a contest and there are no accepted benchmarks with which you can compare yourself. What seems like a small net worth to one person will appear to be a fortune to another—it all depends on your goals and expectations. Remember, the reason to get your finances in order is to help you live the kind of life...

Maestro

The Net Worth Calculator

The Excel Net Worth Calculator template is downloaded as Net Worth.xlt. Be sure to follow the instructions in Chapter 1, “Taking Control of Your Finances,” to load the template and save it as a workbook under its own name (I’ll repeat these instructions below). The calculator, before any data is entered, is shown in Figure 4.1....