No one likes to talk about budgets…well almost nobody. If a budget is sensible, necessary and even desirable, why do we hate them so much? The reality is that making a budget or staying with one seems to contradict our instant gratification that is part of our culture. We certainly don’t want to miss out on the latest fashions, electronics or the hippest restaurant, but a budget is as important to being successful financially as oxygen is to breathing.
A budget forces you to look at what you spend. A good budget will be able to break down, to the dollar, how much you spend on clothes, food, movies, etc. Most of us don’t like the restrictions that budgets pose, but we would do well to follow the quip “a penny saved is a penny earned.”
It will take a bit of time to set up a good budget, but you should start by understanding where you are spending your hard earned dollars now. Save all of your receipts, bank statements and credit card bills and put them in a pile. Also, you will want to either use an Excel spreadsheet or buy a software solution such as Quicken or Microsoft Money. The other option is going online to Mint or Budget Tracker and joining for free.
By getting started, you will be taking one of the first steps that will help you cement your financial future.
Wishing You Wealth in all its Greatest Forms,
Alex
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