Basic Budgeting Tips Everyone Should Know

Budgeting lies at the foundation of every financial plan. It doesn’t matter if you’re living paycheck to paycheck or earning six figures a year, you need to know where your money is going if you want to have a handle on your finances. Unlike what you might believe, budgeting isn’t all about restricting what you spend money on and cutting out all the fun in your life. It’s really about understanding how much money you have, where it goes and then planning how to allocate those funds best. Here’s everything you need to help you create and maintain a budget.

Budgeting Basics

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.

How to Create a Budget

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.

Read more: https://www.thebalance.com/budgeting-101-1289589