Barring extraordinary shifts (i.e. gas going up to $10/gallon), do you know roughly how much you will spend this year on clothes, groceries, and shelter? If coming up with reasonably accurate figures is challenging, perhaps the problem is lack of organization in your finances.
Order in your finances is so crucial, and it is a tremendous benefit of budgeting. Order, in this context, simply means the accurate arrangement of your money. Pause and think about that for a moment. What would it be like to have no uncertainty about your finances? You know exactly what is coming in and what is going out. In short, your financial situation would be calm because there is less financial pressure. Properly budgeting brings peace because it systematizes the process thereby reducing the stress of managing your finances.
Your system can be very simple (merely documenting expenditures, savings, and investments) or very complex. You decide! Personally, I prefer a standard excel spreadsheet-based budget. However, the system one chooses is irrelevant. The key is that your diligent record keeping will enable you to become an excellent steward of your families’ financial resources.
Additionally, budgets aid significantly in record keeping. With a budget, all financial transactions are documented. Tracking bills, receipts, and financial statements over the short and long term becomes so much easier. Bite the bullet, and begin budgeting today.
Copyright 2008, Roshawn Watson, Pharm.D. All Rights Reserved.
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