What is the point of budgeting, really? Well, the major goal of this endeavor is living within or just below your means. For most households who need to save money up, aiming to spend less every month so that a portion of your income could be transferred to various savings accounts is the main reason behind budgeting. Others simply want to make sure they don’t overspend and go into debt.
And though budgeting can be a great financial tool for many, it appears that only 40% of people keep track of their spending. Furthermore, 2 out of 5 people don’t even have a budget, according to the Certified Financial Planner Board of Standards. So, really, if this isn’t something you excel at, you’re not alone!
Then there are those who think they’re budgeting but actually aren’t. Here we mean those people who take it slow with spending towards the end of the month before their wages come in but don’t have an actual budgeting plan. If there’s no planning involved and you’re just sort of winging it, you’re not doing your finances any favors.
So, with that said, let’s look at how to create and maintain a family budget!