Why have a budget?
Creating spreadsheets helps put your budget into perspective.
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Sitting down to set the monthly budget is one of the most important things that any adult must do. When I ask people I know if they have budgets I get a range of answers. Some say that they don’t have a budget but they make sure to deduct money from their accounts the minute they get paid. Others say they don’t deduct but they don’t spend a lot anyway so they have a good sum left in their accounts at the end of the month. And yet others have told me that they write down everything they spend in an elaborate spreadsheet, everything! With no exceptions!
Why have a budget?
Personally, I want to set a budget for myself. I know that I may not follow it exactly, but I’m going try very hard because it will give me a guideline and help me:
1. Understand how much you can spend and how much you must save. It’s like a weather forecast, it gives you a fair idea of what’s coming up ahead.
Cashbox for Macs is one of the most user friendly applications for creating budget spreadsheets.
Many sites offer free or very cheap products that are meant to help people like myself with their budget making endeavors. Products such as cashbox [an application for mac users] and many others can be found with the click of the button. I found that the best one though, is the one offered with Google Docs, because Docs not only offers a budget spreadsheet, but a saving sheet and a loan calculator.
2. Help save up for short-term goals! Instead of going out to buy whatever luxury my heart is set on, I can figure out how much it costs and how many months I can save up for it to get it. Let’s say I want to buy jewelry. I can get it now, or I can save up for it. The me from a few months ago would have got it the minute it was a whim, but the new me realizes that although I want it now doesn’t mean that I need to get it now! And instead of getting it now and spending 3/4 of my paycheck, or more thanks to credit, I can save up for it and buy it cash and still be comfortable during the current and next month. These goals don’t just need to be material things, they can be holidays and short getaway trips.
3. Gives you options. Just because you may be paying a debt off doesn’t mean that you cannot save! A budget can help you realize the things you don’t need to spend on and eliminate them from your spending habits. Then, that money can be saved, even if that amount is little. At least your saving!
Setting aside a monthly emergency fund is the way to go!
4. Emergency fund. By setting a budget you can set a monthly emergency fund that can either a) be rolled on and merged with the next month, or b) moved to your savings if not used. And nothing can be a life saver as much as an emergency fund! Whether its the car needing new tires or a surprise dentist visit, you can lessen the pain of the emergency by digging deep into the emergency fund than it is to dig deep into your spending money!
With the budgeting you will realize that even if you get a good paycheck at the end of the month, there isn’t much wriggle room, but the point of a budget is not to live cheaply but to live wisely! A lot of us are slaves to our paychecks. We live from paycheck to paycheck, this alone should unleash the grey hairs! But if we want to live a happy life, in which we feel in control of our financial directions, we will have to sit down and create a budget, no matter how painful that is!
*Do you have extra coins laying around all over the place. Collect them and then take them to the bank. Coins are money, they’re not just a nuisance and after a while they can actually add up to a good amount! 
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