The word “Budget” is not a bad word; instead it should be used in everyone’s vocabulary. Creating a budget is crucial to improving your finances. A budget will allow you to stop missing payments, damaging credit, and paying late or overdraft fees. Simply by creating a budget you have now started to delegate where your money goes. Every dollar has a place, including savings, bills, and spending money. Having a budget can also help that person that claims to not have any money find some extra cash each month.
Create a list of every bill, expense, and spent amount for a month. The money that is spent on snacks, coffee, etc. must have its own category also. The budget will also show any extra left over after all bills are paid. It is important that this extra money is also delegated into a category, such as a savings account. This is the most difficult and important part of this process because it involves sacrifice and seeing your finances on paper. Once you start telling your money what to do, you can regain financial control and begin to enjoy using the “B” word!