Budgeting... It's Sexy!

You. Need. A. Budget. This is not up for discussion. You must have a budget if you ever expect to make a difference in your finances. Budgets are for you to tell your money what to do. If you get your paycheck, spend it all and have no accounting of where it went, you need a budget.

People hear the word budget and immediately think the worst. They think it's restrictive and going to cut all of the fun out of their lives. Budgets aren't the big bad that some make it out to be. If someone is in your ear telling you that you don't need a budget, ask her or him about their finances. Most likely, they aren't in great shape. And we don't take advice from broke people.

"But I don't have any money to budget. It all goes to bills." You still need a budget for that. And let's be honest. Did it ALL go to bills? Do you not get Starbucks at least three times a week? If so, that expenditure needs to be budgeted. I promise you, you will feel 10 times better about your finances after creating a budget. 

Start with calculating your expenses. How much do you need for bills? What's your average spending for groceries and gas? Once you know these numbers, you can start planning your monthly budget.

You must always pay yourself first, so budget how much you can put in savings. Then take care of home. Budget how much you need for your rent/mortgage, utilities, other bills, groceries, etc. Focus on any debt you have next. Budget for any incidentals that may come up. And whatever you have left over is for fun! Budgets are only restrictive if you make them so. If you want to go out and have drinks with friends a couple times a month, do it! Just make sure you budget for it. 

Once you get in the habit of budgeting your money, you'll find that you actually have more of it than you think. You have to be in control of your finances and that's what budgets help you accomplish. Money is 80% behavior and 20% math, so what does that tell you?

You. Need. A. Budget. A