The B Word is NOT a Bad Word

We as a society decide which words are considered 'bad' words. Usually, it's a word that makes us uncomfortable or said out of anger. The word budget is often considered a bad word. We try to avoid discussing money and money situations.

When most adults hear the word budget they think of restrictions and what they'll have to give up. Putting a budget in place just means that you’re thinking about your money choices before you make them.

Creating a budget does not require a high school education. In fact, if you are able to add and subtract, you can create a budget. The first time you create a budget it will take time. However, each time you complete a budget it will get easier. In addition, while you do have to work on your budget, it’s infinitely less stressful than finding yourself with not enough money at the end of the month. Taking a little time now to prevent stress later is like a gift to your future self.

 

To make a budget you can keep it simple by using paper and pencil or use an online tool or app. The first step is to gather all your bills, receipts, check stubs and check registrar for the past few months. You will need to begin to keep track of what you are spending and where your money goes. The following steps will help you set up your first budget. 1. Write down your total income. 2. List all your expenses. 3. Subtract expenses from income to equal zero. 4. Track your expenses throughout the month. 

The most common mistake in creating a budget is not including every expense in your budget. Each budget should have a category for blow money. This is money that is spent on items that are just for fun or not considered part of your everyday living expenses. You can create your own budget online using everydollar.com. 

Assignment: 
Step 1: Using everydollar.com or a budget form, create a list of items that you will need to put in your personal budget. We will be using this list to create a personal budget.
Step 2: Watch the video and read the 4 Things You Must Include in Your Budget. Draw a picture representing the 4 walls and include labels.