To some budgets are a dreaded word. Picture endless rows in a spreadsheet with numbers that don’t align. Big red cells that signal being under budget or overspending. Someone bent over a computer pulling their hair out.
This does not have to be you with your finances. In fact, budgets may be your next best tool on the road to financial independence. A budget could be as simple as a spreadsheet that lists your spending and earnings. You can even write it by hand if Excel freaks you out. Usually you would track your spending and earnings by month. The spending could be split into different categories such as housing, food, transportation, savings, entertainment, etc.
Budgets are a way to visualize your finances. In today’s electronically driven world money enters and exits our accounts without anything passing through our hands. We may not truly know how much we spend with each tap of the credit card or every online order. We may not even know how much our paychecks are. With a budget, you can maintain control of your finances, stay on track if you have goals, and spot red flags in your spending habits.
MMM tip: Do you know how much you earn each month? Check your bank account and total last month’s paychecks.
Until next week,
Dariene
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Disclaimer: This newsletter is for informational and educational purposes only and should not be considered financial, investment, tax, or legal advice. I am not a licensed financial advisor. Please consult a qualified professional before making any financial decisions.
