Whether you’re fresh out of college or earning six figures a year, budgeting is essential to mastering your finances and, ultimately, your life.
Unlike the common notion, budgeting doesn’t have to be restrictive. If done properly, you’ll learn how to prioritize what is important to you. (the balance)
Do you know why a budget is so important? On the surface it seems like creating a budget is just a tedious financial exercise, especially if you feel your finances are already in good order. But you might be surprised at just how valuable a budget can be. A good budget can help keep your spending on track and even uncover some hidden cash flow problems that might free up even more money to put toward your other financial goals.
The hardest part of creating a budget is sitting down and creating one. It’s like staring at a blank piece of paper when you need to write something, and that first step seems like a massive hurdle. Don’t worry — I’ve broken down the budget creation process into a few easy to follow steps. You’ll be able to sit down and create a basic budget in just a few minutes.
Once you’ve taken the time to create a budget, now it’s time to make sure you follow it. Budgeting can be like going on a diet — you start with good intentions, but after a few weeks or months you drift away from your plan. Don’t let that happen to you. Here are a few basic traits that will ensure budgeting success.
If you’re having difficulty coming up with all of the various expense categories for your budget, Use this budget worksheet that can help you organize everything. This worksheet has the most common expenses and can help you keep track of everything in an orderly fashion.