Budget Money 101

Budgeting. The nine-letter word in personal finance either excites you or conjures up images of torture.

How to Budget Money so you can reach your financial goals and enjoy life? This is the Way. 

What is a Budget and Why Should You Have a Budget?

Budgeting is a financial exercise highlighting your earning, spending, and saving habits.

It provides you with an overview of exactly how much money you’re making, how much money you’re spending, and how much money you’re saving over a specific period of time.

A good budget provides as much detailed and accurate information as possible regarding your spending habits and income. 

Do I seriously need a budget, and why? 

How Do I Make a Budget? What are the Steps Involved?

The good news is that creating a budget isn’t the hard part; sticking to it is where most people fall short.

For me, personally, the first step has always been calculating my total income before even worrying about my expenses. 

Step 1: Totalling your income

When you begin examining your expenses, start by dividing them into two types of spending/expense categories: fixed costs and variable costs.

Step 2: Totalling your expenses

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