Budgeting Finances
What Does That Mean Anyway?
Budgeting finances. Let’s take a look at what it means.
Definition
According to dictionary.com, the relevant part of the
definition of "Budgeting" goes like this:
Budget:
–noun
1. an estimate, often itemized, of expected income and expense
for a given period in the future.
2. a plan of operations based on such an estimate.
–adjective
7. reasonably or cheaply priced: i.e. budget dresses.
–verb (used with object)
8. to plan allotment of (funds, time, etc.).
9. to deal with (specific funds) in a budget.
–verb (used without object)
10. to subsist on or live within a budget.
And the partial definition of "Finances" is:
Finance:
–noun
1. the management of revenues; the conduct or transaction of money matters
generally, esp. those affecting the public, as in the fields of banking and
investment.
2. finances, the monetary resources, as of a government, company, organization,
or individual; revenue.
So really budgeting finances means to estimate, record and
manage your money coming in and your money going out.
Budgeting Finances is Money Management.
It's that simple.
Money in
and Money Out. It's just money management.
Figuring out
how much money you make, how much you spend and how much
you save. It also includes much you spend in interest on your debt?
Overall do you
spend more or less than you make?
Budgeting, in the traditional sense, is just planning and
tracking your money. It is finding out where you are now, and making a plan
for the future to follow.
However budgeting finances is only one aspect of money management. One
that people don’t think of. Let’s start with this:
If I asked you to budget your finances, how would you react? Would you:
- Run away?
- Ask for help?
- Know what you are doing – but you just don’t wanna!
- Say you would do it – but come up with excuses not to?
- Ask for budgeting tips?
Do you have a history of starting to budget or
organizing
your finances but don't follow through? If so, check out our
Overall Game plan for your personal finances and money management
. This
plan gives you a place to start and the pieces you need to transform your
money!
Types of Budgets
If you don’t know how to budget, we have outlined different
types of budgets and instructions and examples for each one.
A Real Simple
Budget Paper, Pencil and Calculator
The easiest type of budget.
Envelope
Budgeting System
A simple, but possible out of date way, to budget your money.
Spending
Plan
Frustrated with how to make a budget? Create a spending plan instead.
Budgeting Finances are a step in your overall money management plan.
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