Budget, Budget, Budget: A Path to Economic Security

Rebecca Matthes, Guest Blogger

So, you just graduated from college and are now living on your own for the first time. Or maybe you recently went through a divorce or broke up with your significant other. Or maybe you just had a baby. There are lots of things that happen to us over our lifetime that we tend to get excited or stressed about. The amount of money we have sometimes adds to that excitement or stress. Making some kind of budget is an important, and responsible, action that will help you feel more in control of your life.

Yes, a budget! Although a seemingly boring and tedious task, knowing how much you make and how much of that you can and should spend on a weekly, monthly or quarterly basis is information that will assist you to plan accordingly with life’s everyday expenditures – big & small. What? You say you don’t have one or need to make some changes to your current one? Then maybe you’ll benefit from advice on CNNMoney.com. Although advice on the topic of budgeting is abundant, this website has come up with Money 101 Lessons. In Lesson 2, Making a budget, listed are 10 top things to know when creating your financial plan. Some of those include:

· Budgets are a necessary evil

· Don’t drive yourself nuts

· Spending beyond your limits is dangerous

· Beware of luxuries dressed up as necessities

 
Another resource that may be of help is using a budget worksheet. There are plenty of versions to choose from on the web. There’s one from Fidelity Investments that you can use. It will help give an overall view and understanding of where your money needs to go and will give you a better idea as to where you stand financially.

Once you create a budget, the next step is to stick to it.  Let's talk about that next time.  For now get calculating!