Avoiding budgeting?
One of the things that can make your life easier, even though it sounds complicated, is personal budget planning. If you’re one of the fortunate few who never has to worry about running out of money no matter how many extra expenses might crop up or how much extra you might spend on Christmas or leisure activities, then maybe a budget isn’t that important. But for the rest of us, a budget can make the difference between having to scrape by on that last $20 or putting an extra $20 into our savings account at the end of the month.
Many people avoid personal budget planning. Some don’t want to face the numbers. They know they’re not earning enough to keep spending at the same rate they have been, so making out a budget will cause them to face some painful truths—they’ll have to earn more money, or spend less money, or both. Other people think it’s just too complicated and will take hours and hours to do properly. Yet others simply don’t know where to begin.
If you think personal budget planning will take hours or weeks and be a confusing process you’ll wish you never started, you’re making it harder than it is. It’s not even necessary to do everything terribly detailed at first, which makes it easier. You can come up with ball-park figures to get started—how much do you spend on your bills vs how much do you earn? Don’t forget other expenditures like eating out, groceries, household goods, gifts and leisure activities like going to the the movies when you estimate how much you spend each month—a look back at your credit card and checking account information makes coming up with figures easier than you thought.
If you’re in the group of people who don’t spend time personal budget planning because you know the picture’s not going to be a pretty one, you’re actually someone who needs a budget more than most! List all of the things you spend money on that aren’t necessary or that you could make compromises with, like taking a brown bag lunch to work instead of spending $8 dollars a day at a restaurant. It can be less painful than you think to make ends meet. If you’re in the other group of people but you don’t know where to start, you can make the same lists and you’ll be started before you know it.
So what’s the best way to make a budget, now that you know how to start?
You could just make a spreadsheet on your computer or even just make a list on paper, but personal budget planning software can help you do more than crunch the numbers, some software allows you to set spending goals and warns you when you’re about to go over budget in an area. You just plug in the numbers and the software does all the analyzing for you, making personal budget planning as easy for you as possible.
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Originally posted 2008-12-24 05:48:50. Republished by Old Post Promoter
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Tags: ball park, brown bag lunch, checking account, christmas, compromises, credit card, expenditures, groceries, household goods, leisure activities, Money, painful truths, personal budget