We have all heard the term “money is the root of all evil” what this statement should be is “The lack of understanding money is the root of all evil.” Money is a tool that we use to support our lives, a good budget system allows you to have a better relationship with your money. By definition a budget is an estimation of revenue and expenses over a specified future period of time. That money is compiled and re-evaluated on a periodic basis.
Which means in order to be successful budgeting you must re-evaluate your budget. Now this can happen on a daily, weekly, monthly or quarterly basis. As a new budgeter I recommend a commitment of at least weekly, in order to get familiar with managing your budget. This will help you visualize and control your spending.
Spending with no purpose is dangerous. Being broke is a state of mind The term “ I am broke” basically means “I make poor choices with my money”. To some this term provides comfort and security when making poor spending decisions. This is apart of changing your mind set on money. Budgeting is the key to become financial free. Choosing a budgeting style is based on your learning style and the type of spender that you are. There are several applications and tools that we can you to manage your budget.
Below is a short list of proven budget styles.
- Excel spreadsheets: This may be a little old-school but this is a helpful tool that can help you see your debt digital but also can be simply managed by you. https://clubthrifty.com/how-to-make-a-budget-in-excel/
- Apps: This is definitely created more to the times. There are serval apps that pull from you expenses accounts and pull into your application budget. To help see all of the spending you do based on areas, to help you cut back. https://www.cnet.com/personal-finance/your-money/best-budget-app/
- Bank Accounting: Most banks these days have their own applications built into there website, that will calculate your spending and even allow you to run reports with breakdowns of where your money was spent within a period of time. https://www.capitalonecafeevents.com/?utm_source=email&utm_medium=email&utm_term=storytelling&utm_content=VP616pre&utm_campaign=bank_awareness_cafe_q2fy21_608 •
- Envelope method– This method is very popular with Dave Ramsey program. Zero Debt budget. This method encourages you to put all expenses and extracurricular funds in envelopes and based on your budget you can only spend the amount in the envelope. For example: Groceries: $150 this all you can spend on groceries and over spending will take from another category within your budget. https://www.fundingcloudnine.com/diy-cash-envelope-systems/
When creating a budget all of these methods have been proven and work well. However the outcome is in your hands. Review all methods and determine which one works the best for you.
