Is it Hard to Make a Budget?

By Samantha Asher

Most people seem to be afraid to budget. Even just the word 'budgeting' makes them nervous and cringe. To them it means living a lesser life while doing more work. They think budgeting is hard and will take away from them the things they love in life. They think they could never budget because it is just too difficult.

Is budgeting really that hard? It can be as hard or easy as you make it. Fortunately, with the right tools, you can make a very simple budget that is really easy to stick to. Before starting, you need to know how much money you earn and spend each month.

First add up your income each month. Fortunately for most of us, this is very easy to calculate because it just means adding up our paychecks for the month. If applicable, add in interest income, dividends, tips, bonuses, royalties, and any other money you make.

Next, add up expenses just as you did income. Add every last expense from the smallest candy bar to the biggest payment, which is probably rent. If you don't know exactly, estimate the best you can. Preferably estimate up to get a more accurate count.

Once these are added up, subtract your spending from your income. If you get zero or just above zero, you are breaking even. You need to budget in order to start saving, especially if you want to get out of debt and feel more financially secure. A negative number means you are going further and further into debt each month.

If you have a negative number and are going into debt, you are probably using a credit card to pay for the excess. This must stop and can be controlled by a budget. If you have a large positive number, you are in a great position. You might already be budgeting! By tightening up your budget or creating one if you don't already have one, you can reach your financial goals even faster.

You can use budgeting software such as Quicken, you can use a spreadsheet, or you can just use a notebook and pen. All you have to do to budget is plan out where you spend your money and how much. Put a certain amount for food, rent, etc. Be as specific as possible, including how much goes to entertainment and other extra fun stuff.

Budgeting is not hard because it is actually meant to make things easier. Instead of worrying about how much you can spend, you know exactly how much. Also, you don't have to worry about running out of money for something important because you budgeted for it. Plus, you can adjust it however and whenever you want.

About the Author:

Starting a hoGethold budget is not difficult at all. Once you get the hand of it, it's easy. Get budget software and it's much simpler!