My mom played a major role in teaching me how to spend and save wisely. I remember sitting down out the dining room table, going over my first checking account statement and balancing the check book. I think from that point on, I was a financial nerd. Nowadays I love using MS Excel to set up my budget. A couple years ago I heard about Mint.com which is also a great spending tracking tool. But the old-fashioned lined notebook and pencil also works fine too.
The key to a good budget is making sure every penny has its' place. That doesn't mean we're living paycheck to paycheck, it just means that we know where all the money is being spent. It's not really all that hard to set up a budget on paper, or computer, but I do admit, it's hard to follow through with the actions of spending the amount written instead of what we want to spend. I'll talk about spending habits in a future article.
Now, to setting up the budget, there are three major areas of focus:
- Outgoing (spending)
In the mean time, stay focused and start setting up the much needed budget!