by Triple Water Astrology

Created on: November 19, 2009

Only a person with the heart of an accountant would love to budget money. However, as we often hear, we must educate ourselves about personal budgeting because the subject is not commonly taught in grade school or high school. Budgeting can be a satisfying activity, because it provides comfort and security through showing how much we earn, how much we spend, and how to obtain the most satisfaction from the money we spend and save.

For those who would not otherwise do so without a computer, plenty of software is available for creating spreadsheets and tracking income and expenditures. Budgets require more than tracking and recording, however. The first step is to think about what you really want from inflowing cash and outgoing expenditures. We all need food, clothing, and shelter. And even these categories may make the line between needs and wants hazy. Should I buy a new name brand sweater or clothing from garage sales? Coupon shop for beans and rice or eat out every day? Deciding what kind of reasonable strategy might be implemented for obtaining necessities - and luxuries - is in order. A budget is useless if it won't make you happy, because inevitably you will stray from it.

Another key in understanding personal budgets is the "pay yourself first" principle. Almost any financial advisor worth their salt would suggest saving at least something out of your earnings. Saving a dollar a day is better than nothing. Find a place in your budget where you can save at least a dollar a day and actually be better off than you were before and mark ten dollars for a savings account every week. Walk instead of driving if you have to (and experience the health benefits of doing so), or visit the library and look at the plethora of books with money-saving ideas and budgeting strategies.

Budgeting in fun activities is critical. Most people are unable to live like monks for extended periods of time, although having a lot of debt or a desire to save for an exotic vacation might entail freezing spending for several weeks or months.

Budgeting ultimately boils down to having a ledger with two sides: income and expenditures. Knowing what your income might be (job earnings, interest payments, imputed income such as rent payments via ownership of property, refunds, proceeds from securities, and so on), and comparing that to your expenditures (housing, food, medical bills, insurance, transportation, utilities, and any other necessity or desire) will not only be good for you, but good for everyone else as well. The economy benefits when consumers know what will bring them the greatest satisfaction from their available income.

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