Zero Down Your Debt. Greg Johnson

you don’t, it disappears.

      You already know that your paycheck is your most powerful wealth-building tool. Still, most of us squander its potency. Month after month, we buy things without thinking about it. We make purchases here and there, large and small, with no idea how much we’re really spending. In short, we waste our paycheck on fake “needs” and impulse buys that don’t do anything to fulfill our deeper desires. We spend without purpose, and – when our paycheck disappears– we have no idea where it went.

      A budget helps us curb these problems. Instead of spending unconsciously, a budget encourages us to spend our money deliberately and with purpose on the things we value most. It stops our paycheck from performing a vanishing act, and protects the money we’ve worked so hard to earn.

      Even better, a written budget (yes, we said written) helps us remember how and when we need to put our paycheck to use. It’s easy to forget which bills are coming in and when they’re due. This can easily trip us up, causing a shortfall for the month. When we’re short on cash, it’s tempting to use debt to paper over the problem. By using a written budget, however, we’ll have a clearly defined, organized plan that helps us get the most out of whatwe earn.

      Harnessing the power of your paycheck is essential for getting out of debt and building wealth. To zero down your debt, you’ve got to take advantage of every last penny at your disposal. A zero-sum budget is your ticket to doing just that.

      TRUTH #6:

      A zero-sum budget is the most effective tool for harnessing the power of your paycheck.

      Knowing how to create a budget is the most important money skill you can learn. The great thing is that anybody can do it. All you need are a few basic skills and a tiny bit of effort. When you master it, the tables will turn: You’ll learn to control your money instead of letting it control you.

      Why Should You Learn How to Budget?

      Let’s explore a few reasons why budgeting is so important to your financial success:

      •A budget provides a clear, visual picture of where you stand financially each month.

      •A budget helps you prioritize what really matters to you.

      •A budget encourages you to be disciplined with your money and helps you save more of it.

      •A budget presents a clearly organized plan that helps you remember which bills are due and when.

      •A budget reflects the actual facts of your financial situation, rather than relying on assumptions about how well (or poorly) you’re doing.

      •A budget dictates how your money should work for you.

      •A budget helps you “find” money you didn’t know you had (or that you were spending unconsciously).