Use a Personal Budget

Using a Personal Budget


At some point in time, it's likely that we've all asked the question, "Where does all the money go each month?" Everyone wants to know but, unfortunately, very few are willing to address the one thing that can actually answer the question: creating a personal budget. Some people will fight tooth-and-nail to try every means except budgeting, claiming that they can keep track of their own spending "in their head." Certainly, a personal budget may tedious to implement at the outset, but it's a great tool to show you just where your money's going and help instill a bit of spending discipline – which, let's face it, all of us can use.

Keep in mind that creating a personal budget should be a family affair. Parents don't have to go it alone. Let everyone in the house contribute to the final product. After all, each person will be governed by it in some way. Your children can benefit from the financial habits that they see you implement on a daily basis. Remember, also, that budgets are not quick fixes. Just as with any other habit, it will take time to become second nature. Indeed, before it's all said and done, you may find that you have to change your original budget several times until it fits your lifestyle. An ideal budget should allow some wiggle room, but also provide enough structure for you to meet your financial goals.

Click HERE for a budget worksheet.