While reading a personal finance article recently I was surprised to learn only 38% of Americans budget regularly.  I think prior to reading the article I was already aware that there were some Americans who didn’t budget regularly, but I was a little surprised at how many actually did not.

I think a big part of this number being so low is that we make budgeting a bigger deal in our heads than it actually needs to be.  We get overwhelmed with just the thought of budgeting. How to get started or what to include? We psyche ourselves out before we even get going.

The truth of the matter is that budgeting is really simple. The task doesn’t require a lot of effort and it yields BIG BIG rewards.

First, it is important for your information to be an accurate and comprehensive view of your financial situation.  You must make sure it shows everything you spend money on i.e. bills, expenses, entertainment, etc. and it must also show all money coming into the household from every source i.e. regular job income, child support, side hustle, etc.  Excluding any of your incoming or outgoing funds will create problems with your budget.

Next make sure you write out your budget.  This can include pen and paper, a spreadsheet or budgeting app.  Any of these options are acceptable. People often try to keep everything in their heads.  This will not work.  It usually just causes confusion. Keeping your budget in a written format helps keep you organized and on track.   And it increases your chances of success.

Finally your budget must be attended to.  You cannot set it and forget it with your budget.  You have to put in quality time with it.  Make sure you check-in on your budget periodically throughout the month to monitor your progress and/or make any necessary adjustments (add or deduct from line items as needed to ensure limits are realistic and aligned with your needs).

Here are some sample budgets that we have created to give an idea of how to lay things out and get started.

Hope you found this helpful.  Happy Budgeting.

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