Do you know how much money you spend per month versus how much money you make? If you don’t know the answer to this question than it is about time you mind out. You can’t spend more money than you have right? If you don’t have a budget, than that might be exactly what you are doing without even realizing it. Without a budget to work off of how can you know if you are living within your means or if you are spending more than you are making? What is a budget? A budget is a summary of your income and expenses usually for a given time frame such as a month. It looks like a spreadsheet with amounts and items. Reasons for creating a budget is so that you know if you have enough money to cover your expenses. With a budget, there are no surprises because everything is itemized on your spreadsheet. According to an article by Investopedia, some additional reasons for creating and maintaining a budget include: allows to to make short and long term goals, guarantees you don’t spend money you don’t have, helps you save for retirement, helps you to budget extra money in case of an emergency, sheds the light on possible bad habits, and helps you to sleep at night knowing that your bills can be paid this month.
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