So why budget?
A budget does not have to be something that restricts you from doing the things you would like to do. When done correctly, a budget helps you to understand where your money is going so you can then adjust where you spend your money so it is going to where you want it to go.
Types of Budgets
There are a lot of different ways to budget. You can budget daily, monthly, quarterly, etc. We have found one of the best ways to budget is monthly. If all of your spending is done from one bank account, when you get your bank statement (or you can grab it online), take the spending you did for that month and separate it into big categories (discretionary/fun, debt, living expenses, etc.). Then repeat for another month and then repeat again for another month. You now have your spending for three separate months You then take and average each category. You can then analyze several things: are you surprised how much you are spending in one area, you can compare spending in future months to your average to make sure the spending in one area is not getting out of control, etc.
Sometimes starting a budget is difficult, if you would like us to send you the template we use with our clients, please reach out to us using the info below and request the budget template and we will send it to you.