Playing 'what if?'

When you are faced with a decision that affects your finances, you can make a better choice when you can first see the outcome of the options that you are contemplating. This is called playing “What If?”

With a budget in A Real Budget that is based on your everyday choices, you can change your spending plan by making “let’s pretend” changes to your current choices. You will clearly see what will happen with each of your decision options before you commit.

“What If?” scenarios could include:

• Can I handle the loan payments for a new car?
• If we have a baby, can we afford to lose an income during maternity leave?
• Can I afford to switch to a different job that I love, but would pay less?
• How much can I pay each month on a debt snowball?
• How much can I put aside each month to cover my ongoing prescription costs?
• I need to keep my wardrobe up to date for my job. How much can I put aside each month?
• I’m going to a friend’s wedding next year in Hawaii. How much can I set aside for the trip?