As long as I can remember, people have been saying some of the following things about budgeting. It is too hard. I don’t want to account for every penny that I spend. Budgeting is for poor people. The truth of the matter is that budgeting is for anyone that is in the following situations. People that pay their bills on time, Don’t know where their money is being spent, have collection accounts and are having trouble saving money.

I have advised people that make $20,000 a year to people that make over $100,000 a year about doing a budget. I get the same excuses why people cannot or will not budget their money. So before we get into the numbers crunching part, let’s talk about the most important part of budgeting in which the majority of people don’t consider first.

To make a budget work you have to be brutally honest with yourself. A forgotten foundation about budgeting is that you have to have a proper mindset. That mindset is trying to understand what goals you are trying to accomplish. If you don’t have specific goals with definite dates attached to them, chances are great that you will either not achieve your goals or it will take you a much longer time to accomplish them. Next time we will talk about the affect that advertising can have on your budget.  I would love to read your comments.