Final answer:
The card that can become a budget buster if not managed properly is a credit card. Proper management includes paying bills on time and not overusing available credit. Budgeting effectively involves monitoring expenditures and possibly employing decision-making models like the PACED model.
Step-by-step explanation:
The card that can become a budget buster if not managed properly is a credit card. Credit card debt is easy to accumulate but can become overwhelming due to high-interest rates and additional fees. To avoid this, it's advisable to pay all your bills on time and to be careful not to use too much of the credit available to you. Planning and monitoring your expenditures by tallying your spending daily and weekly can provide significant insights into where your money is going and whether any changes need to be made in your spending habits to save more money for the future. Additionally, employing a decision-making model such as the PACED model, which involves identifying the problem, listing alternatives, considering the consequences, making the decision, and finally, evaluating the decision, can help you manage your money more effectively.
When creating a budget, it's crucial to track both income and expenditures to identify any wasteful spending and to achieve your financial goals. Successful budgeting requires making choices and possibly giving up non-essential indulgences. By doing so, you can stick to a budget that supports your financial wellness and goals.