Beginners Guide to Budgeting
Budgeting is the key to achieving financial security and understanding budgeting is the most important step to conquering your finances.
Before you dive into all that is budgeting, here are a few points to keep in mind.
Be Honest: You are budgeting for your finances so be honest about your financial situation. Budgeting is not about finding personal faults. It is about identifying areas in our lives that need improvement, highlighting them and making a plan to fixing the problem.
Set Realist Goals: It’s great to be ambitious but not over ambitious. Set goals that can be achieved. This is not a race to the finish line. You are not likely to cut your expenses by half in the first month or even by the second or third month.
Stick to it: Build a budget and stick to it. Building a budget and not sticking to it defeats the whole purpose of it. Make an effort to stay within your budget. Sticking to your budget does not mean that you should not be flexible, allow yourself to be flexible if you have to deviate from your budget. But the key is to learn from it and incorporate it into your budget.
Since budgeting is such an important part of our financial wellbeing I have prepared a list of posts that are helpful for budgeting beginners. These posts will help you start from the beginning, explain all about budgeting through to building your first budget.
The first link is all about budgeting, what is budgeting, why do we budget, the benefits of budgeting and so on.
Once you have an understanding of budgeting, I recommend reading the posts below to further understand the workings of a budget. I will be adding more posts to this list from time to time.
Read Simple Ways to Track Your Spending on insight into how to track your expenses. Your expense data is vital to building your budget. Also if you are looking for tools that make budgeting easier then you should read Useful Budgeting Tools.
Here is a link to budget templates to get started.