People are inherently rebellious, it is in our nature and we cannot deny it. However, all of us know that rules are in place for a reason and rules give us safety and bring order in our lives. While we might not like them, they are there to help us and make our lives easier.
The same is true for developing a budget. In order to have financial success, you need order in the form of a budget. Now, the first and the most basic rule of budgeting is to keep it simple. If you do not like rules then do not worry because there are no specific “rules” for budgeting. People tend to create a big hype around budgeting and that you need to stick to specific rules if you want to succeed. Nevertheless, the thing is that there is only one rule that you need to remember when formulating your budget and that is to keep it all simple.
You need not be an accountant or even have any degree whatsoever in any accountancy subjects. All you need is a paper, a pen and a calculator.
Do not complicate things when they are much better left simple. There is no need to use fancy graphs or linked spreadsheets or any complicated tables. No, you will not need any hi-tech software to create your budget. You will not even have to take any extra degree or classes to do it.
As I said earlier, if you have a blank sheet of paper or a spreadsheet then you have all you need. Enlist all the expenses that you make every month. Yes, this is what it is. It is preparing a list and nothing more than that. Now you tell me if this is difficult.
If you are one of those people who cannot seem to remember what you spent your money on then you can do this. Carry a paper and pencil everywhere you go. Note every expense you make. By the time the week ends, you are sure to know your expenses. Keeping in mind the notes that you took during the week, prepare your monthly budget. You can make things even simpler by doing budgets for each pay check. Alternatively, you can assign a column to every pay check.
When you are done, plan your expenses surrounding your pay check. Simply decide what you want to spend money on, this week or when you get your pay check this time. If you can keep a track of where you are spending, you will be able to plan how you want to spend it.
The planning will keep you from making any unnecessary or impulsive purchases that you will regret later on. Stick to your budget and you will do well.
Simplicity is of prime importance when you plan your budget. Without it, you will be lost in complicated terms and columns and you will end up in a mess. Therefore, plan a budget and make it simple.