Why make a budget? You don’t really need to, especially if you have money in the bank to fall back on.

I like to equate having a budget and spending to having a roadmap and traveling. Getting from Point A to Point B is a lot easier because you have a roadmap and guide to follow.

The same applies to spending your money. You must first consider the many benefits of a budget before you sit down and prepare one (which we’re here to help you do):

you’ll have less anxiety because you will never be surprised with a bill you have to pay.

This gives you control over your money, rather than your bills controlling your money.

Here are some quick tips you can use to start your initial budget.

1) Use a calendar. Make note of when your bills come, so that way you can expect them to come at a certain time every month. Companies are pretty consistent with sending their bills around the same time every month. Just mark it on your calendar.

2) Know when you’re getting paid (I’m sure we all do!). If you know for certain or can estimate at what point you will get paid, better yet.

Remember, part of a budget calls for putting money away to pay yourself. This increases your overall amount of money that you can fall back on, in case of an emergency or large one-time purchase (car, etc.) You would want to have this “fall back” emergency cash in a fairly liquid bank account, not an IRA.

Just like the Panama Canal, a personal budget isn’t going to be built overnight. You have to plan out your budget, develop your budget, tweak your budget and manage your budget.

This calls for discipline, consistency and knowing your priorities.

We’ve built budgets for ourselves because we were sick of being broke as a joke, and there was no reason other than poor financial management that we were broke, living paycheck to paycheck.

Keep up with our Budget Series blogs to help form and manage your budget.

Now that you know when you have to pay expenses and when you’re getting paid, the next step is to allocate your income.

Continue…

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