Budgeting: Complicated, Scary or Just Time Well Spent in Sunny Orlando, FL.

Have you ever wondered why some people are so good with their money and some are not. A simple budget sets the two apart. A budget is not complicated or scary. Let’s first focus on the faction that believe  a budget is complicated. If you can use a simple calculator, then you can create and utilize a budget. The key to a budget is using it early and often. Early, by way of as soon as possible. Often, by way of at least monthly. The other key to a budget is  knowing what your normal monthly expenses(compared to your income) are so you can have a basis for your budget. I liken a budget to the old adage of failing to plan is planning to fail.  I also liken a budget to not making the time to focus on your finances equates to making time to lose all of your hard earned money.  When using a budget remember to always pay yourself before you pay others.

There are many  tools that can help you form a budget such as:  mint.com, excel spreadsheets or an old fashioned notebook. I have also included a link to some of the best budgeting apps available https://www.dailyworth.com/best-budgeting-apps-and-spending-trackers. I am including 10 basic items that incorporate most budgets: savings(2 types-rainy day fund and wealth accumulation), housing, utilities(water and electric), cable/internet, gas, food, insurance, phone, entertainment, taxes and debts. Add any to these, but this should be a good start. I am also including a link to simple online budget in which you can just plug and play  https://www.kiplinger.com/tool/spending/T007-S001-budgeting-worksheet-a-household-budget-for-today-a/index.php?rid=SOC-email#.WqWuAnk8Lfs.gmail.

Let’s now focus on the faction that believe  a budget is scary. Many believe that it is scary because they are now held accountable for all of their money decisions.  Many also believe a budget is scary because they do not know how to manage or build one.  The good that can be done with a budget completely outweighs the trepidation that may come with creating and maintaining one. A budget simply tells you if you are putting in more than you are taking out.

When budgeting, remember to celebrate your accomplishments.  Budgeting requires patience, diligence and most of all flexibility.  Don’t beat yourself up if you mess up. Acknowledge your short falls and have the confidence that you will do better the next round.

A budget can do so many things for you. Some of the things it can help you do are: give you confidence in your money habits, allow you to have monetary goals, give you a path to pay off debt, save money for emergencies, save for retirement, save for a house or car, save for a vacation, save for a college education,  save for a wedding or building your credit through smart credit card utilization. A budget also encourages good money habits including utilizing your cash flow to buy things. A budget also holds you accountable when you spend money on non-necessity items that you cannot afford. A budget allows you to be your own bank of sorts.  A budget can help you build a legacy of great money habits.  

No one is exempt from using a budget. Good money habits are the same for the lower, middle and upper class. It is similar to the concept that everyone puts on their underwear the same way. A budget is the one thing that helps those infamous professional athletes  save their wealth versus those who go broke.