Finances: The Importance of Creating a Budget for Yourself
26 February 2008Are you a debt-ridden woman? Even if debt may not be an issue for you now, there is a good chance that it will become one in the future. Whether you are in debt now or if you are looking to prevent yourself from falling victim to it, you may want to examine budgets. Creating a budget for yourself is a simple process, but it is one that can help to keep you out of debt or even get you out of debt.
Before examining how you can go about creating a budget for yourself, it is important to understand the importance of budgets. As previously stated, budgets are a tool that can be used to make sure that debt isn’t any longer an issue for you. By creating yourself a budget you are able to track your spending, as well as ensure that all needed expenses, like your car instance or your mortgage, get paid.
This also gives you the opportunity to examine how much extra money you have each month, money that you could put towards repaying your debt or put in a savings account, if you aren’t in debt right now.
When it comes to creating a budget for yourself, you should be able to find a number of budget templates online for you to use. While these free resources are nice, you may only want to use them as starting points. You can get great ideas from them, but you may want to create your own budget. This is important because not all individuals lead the same lives or have the same expenses to take care of. For instance, a budget template for those in New York City may not necessarily call for car payments or auto insurance, but if you had a vehicle, you will need these sections displayed on your budget.
It is also advised that you take the time to create a budget for each month of the year. As previously stated, a budget allows you to account for your spend in advance. If you have a birthday party in July that you need to attend, you may need to account for buying a gift. However, this is something that will likely not occur each month. Creating individual budgets for each month of the year may seem like a complicated process, but it doesn’t have to be. It may take a few extra minutes, but those few minutes are more than worth it.
To get you started with saving your money, to help relieve the stress and other issues often associated with debt, you will want to start by outlining all expenses that you must pay for on a monthly basis. These expenses are ones in which you cannot go without paying, like rent, mortgage, renters insurance, homeowners insurance, auto insurance, auto loan payments, groceries, and your utility bills. These are the expenses that must be paid, no matter what.
Once you have a detailed list of important expenses, like those that you are unable to go with out, you can focus on the next level of importance. These are items such as internet access or cable television. If you are just looking to save money, possibly to put into a savings account, you should be able to continue paying these expenses without any problems. On the other hand, if you are looking to dig yourself out of all of the unpaid debt that you have accumulated, it may be a good idea to go without internet access or cable television, if at all possible, even if it is just for a short period of time.
You can also use your budget to determine how much extra money you will have each month. You can do this if you regularly work the same hours or if your pay is salary based. Once you have totaled up all of the aforementioned expenses, you can subtract that from the amount of the money that you bring home from work each week. Any extra is money that you may want to consider putting towards your debt or saving, just in case.
on March 4th, 2008 at 5:27 am
Making a budget for me is almost like dieting. I start the month planning to stick to it, but something happens and I drop the whole thing. I think the key would be having a part of the budget that addresses those “extras” that are always popping up, especially if you have kids!
on March 23rd, 2008 at 1:52 pm
i totally agree that creating a budget is important, but sticking to the budget is just as important
on March 29th, 2008 at 1:49 am
Creating a budget and sticking to it is so smart. But why is it so hard to do?? Sigh…
on April 3rd, 2008 at 12:22 am
Budgeting in your personal life should be no different than budgeting in business. Simply put unless you track where you are money is going you are destined to live check to check or crisis to crisis.
on April 16th, 2008 at 9:03 pm
One survey showed only 20% of adults use a budget. That’s probably why so few have a handle on their finances. Every dollar should be tracked and in these tough times it needs to almost be a religion.
on April 22nd, 2008 at 1:37 pm
I agree with Nicole. I am really good with all the basic stuff, but then extra problems always arise and mess my whole month up. I have trouble budgeting for the extras.
on April 25th, 2008 at 3:58 pm
It’s so hard to stick to a budget but it’s well worth it. I haven’t graduated from college yet and I already try to budget out my finances so I won’t end up in debt. I’m sure starting this habit now is going to really pay off for me in the long run & keep me out of trouble!
on April 26th, 2008 at 12:34 pm
Hi, great ideas on budgets and the softer side of getting to a workable resolution. Do you have any suggestions/links for places to find help with forward looking financial plans (I’m trying to help my retiring parents look out 25 years)
Thanks!
on April 27th, 2008 at 9:03 pm
I agree with Nicole totally.
on May 1st, 2008 at 9:33 am
budget is important. Do’nt be expense if bigger than earning. All must be calculated goodly and detail.
on May 1st, 2008 at 9:35 am
I’m agree. Everything can predicable with planning and budget
on May 8th, 2008 at 10:40 pm
I’ve just set up a budget for myself so far so good. Hopefully I’m able to stick to it. I agree that it is really important.
on May 13th, 2008 at 1:17 am
No matter how good is your budget planning is, discipline is the most important things here. It’s hard to follow the plan yet we must do it seriously to make it work.
on May 15th, 2008 at 1:27 am
I have so many debts around me that force me taking up all sorts of jobs just to make sure I have enough money to pay them off which is kind of sad and I feel bad.
on May 16th, 2008 at 3:44 pm
I couldn’t agree more in this.. discipline is everything here… its no use got a plan if doesn’t have discipline to follow it. Just stick with it then there is no problem will occur…
on May 16th, 2008 at 4:28 pm
I’ve only made a monthly budget. If you are those who can’t keep to the budget limit then writing down daily expenses really helps. It narrows down on where you need to reduce. Anyway, remember, stinge on anything but not food. Health is more important than anything else.
on May 17th, 2008 at 5:11 am
I’ve this friend who is always bad in managing his financials. I’ll forward your link to him i think it’ll help him out real good!
on May 17th, 2008 at 5:23 am
is so hard to follow a budget. disciplining self is kinda tough. i couldnt even sleep before 2am even thou i know is bad for health. guess earn more to cover the expenses is better lol
on May 20th, 2008 at 2:33 am
Yep, I’m guilty. Crafting a forward-looking budget for one full year is easy. But like Lisa Ann something always comes along and mess things up. I totally subscribe to Kiyosaki’s concept of paying yourself first, setting aside a fixed percentage of my income for savings and investments. I get derailed in the implementation part. I still need to work on will power
and I’m definitely making progress in this regard. The unscheduled expenses are not that big and I manage to get back in the black a couple of paydays later. I figured, I’d be far worse off without a working budget. Thanks for this article.
on May 20th, 2008 at 4:11 pm
I agree with Doc SEO. Creating budgets are easy. It’s just a figure for you to create. Following your budget on the other hand is different all together. Still, good post! Thanks for it
on May 23rd, 2008 at 8:20 am
Nice post. Well, planning is always essential. That can save you from lots of extra expenses)))
on May 24th, 2008 at 8:08 pm
I don’t even have a budget, because I only buy what I need. If I did have a budget, it is not like it would help me to know I really cannot afford to buy food. I maxed out my credit cards because I had a medical problem and bad health insurance. Now, I put away my cards, and I am crossing my fingers that I don’t have another emergency. Creating a budget will just make me more depressed.:)
on May 25th, 2008 at 7:14 pm
I’ve been on a tight budget for a year or so now and the hardest part was the first month. Those impulse buys and other stuff you just don’t need, but you want. Once I got over that things have been great.
on May 28th, 2008 at 3:24 am
I’m with Doc. Discipline is the best way to go. The first thing you should do is cut up all your credit cards that way you are only spending the money that you have and not buying on credit.
on June 10th, 2008 at 6:09 pm
well if you click on my name i added a link to my site that i think will be very helpful. It basically tells you that you can choose your level of wealth if you just change who you are
…spiritually,
…emotionally,
…and mentally.
i think this will really help you out on your quest to make a budget.
on June 19th, 2008 at 5:27 pm
For me planning a budget is easy but sticking to it is really difficult. Anyways I like your post it’s very informative. I hope this month I’ll be able to follow my budget plan strictly.
on June 23rd, 2008 at 2:35 pm
Yeah, I ussualy have trouble budgeting for the extras.
for fun, sometimes it make me crazy
on June 23rd, 2008 at 4:47 pm
yeah, not planning is same as planning the failure