Make a Personal Budget
Your budget is the heart of your personal finance life. Effective budgeting starts with knowing where your stand financially and evaluating your current spending habits. Then make a simple personal budget across just 2-3 problem categories to get started toward saving. moneyStrands tracks your spending daily and updates your budget accordingly so we spare you the chore.
One of the most important financial decisions you will ever make is learning how to make a personal budget. The reason it is so important is it gives you control of your money and tells it what to do. If you are living paycheck to paycheck your money is not working for you, it’s working for all your creditors and making them rich. Wouldn’t it be nice to turn that around and make yourself rich instead?
The basic purpose of a personal budget is to plan how an individual’s money will be spent. Given limited financial resources, a budget is a method of managing personal cash flow, to both meet current obligations as well as provide for future spending.
In Control’s system of self directed support introduced the concept of a personal budget, providing a way of ring fencing money so that it is under the control of people who need support or those closest to them.
Managing your personal budget can be simple and can save you lots of money. Make a plan. Work your plan. Track your actual expenditures. Change your plan. It is not as hard as you might be thinking, and the wonderful feelings of being in control and finding money you didn’t know you had are priceless.
I am down right bad when it comes to budgeting. I’ve gotten used to a save first and automatic payments lifestyle that budgeting has become a foreign language to me. However, a recent unfortunate event may put this lifestyle to an end and force us to take budgeting seriously. I have been refreshing myself on the basics of household budgeting, want to share things I learned with you.