Budgeting Simple Plan-Why is it Important?

Do you have a problem?

Ok so it is the end of the week, and you might be like me, I am looking at my banking records to see what I've spent this past week,but there is a problem..I am NOT where I want to be as far as how much money is in my savings, and how much is in my balance! This is not good, where did it all go wrong?! Well, budgeting is where I failed, and it is really common among many young college people like myself, as well as older people! There just isn't a good complete budget to keep down my spending. So what is the solution? To sit down, create a good budget model, and most importantly, be the adult I am and ACTUALLY GO THROUGH WITH IT.

Budgeting Saves Money

So What is the Solution?

It seems there needs to be a good budget model that fits a person with their life style, and ultimate goal by the end of the week, or whenever you decide. Let's go through some simple steps first. Then we will go into some explanations ad tips, Of course we will end with at least two different strategies that have worked for me in the past. HOWEVER, I AM NOT RESPONSIBLE FOR ANY FINANCIAL LIABILITY, IF YOU ARE TO AD-HEAR BY MY SUGGESTIONS, I AM IN NO WAY A FINANCIAL ADVISER OR ANYTHING THAT HAS TO DO WITH FINANCE. THE INFORMATION BELOW IS ONLY INTENDED FOR STRICTLY ENTERTAINMENT USE.

Steps To Having a Budget

  1. Take Into Consideration What You Spend Every Week, Month, and/or Year
  2. Separate Into Different Categories: Food, Utilities & Bills, Recreation
  3. Add Up & Average: How Much You Spend Within Your Desired Report Period According to The Respected Category-Food
  4. Add Up & Average: The Utilities & Bills You Pay Within Your Desired Report Period According to The Respected Category-Utilities & Bills
  5. Add Up & Average: The ammount You Spend Within Your Desired Report Period According to The Respected Category-Recreation
  6. Now Take The Averages and Compare Them To The Ammount of Income Within Your Desired Report Period (For example- Say you get paid every week 300$ and at the store you buy 50$ worth of groceries a week- the percent of spent/income would be approx 16.7%)
  7. Put This Data Into A Pie Chart
  8. Adjust If You Want To Increase Savings, Or Stay Within Your Periodic Income

Increasing Savings

Ok now it is time to speak theoretically. Let's say you bring in 1,000$ a month and the ammount you spend in each category is listed as such below.


Food: 150$

Utilities & Bills: 450$



Food: 15%

Utilities and Bills:45%

Recreation: 40%

Non Savings Budget

Let's Try Saving

Ok so the chart above is without saving. Now let's say that you have a new car in mind, or maybe a new T.V., refrigerator, etc. You need money down to get a loan, or maybe you don't want a loan.Then you need to be on the track to saving.With that we need a new category called savings.Well let's say we need breaks in our car now and it will cost 150$, well that is 15% of our total income within our period.... We need to either save over time OR take that away from another section. I rather take away 5% from the recreation, but why that section?

There are some things in life that are in fact FROZEN when it comes to budgeting. This means that we can't change it or else that would affect our standard of living. So food and bills WILL NOT get cut because those are frozen. However, if you do believe that there is too much being spent on food then,figure out what you really need to be comfortable, and take off the amount that you know is extra.So let's take out 5% from the recreations section and put that into the savings part.

What a Saving Chart ay Look Like

Now You Are On Track to SAVE or INVEST!

Now that you have a certain percentage going into the savings account or investment portfolio, you can have a better secured future,and over all a better standard of living. You will see that the more percentage you place into your savings category, the better the results of the savings plan. If it were me trying to save up for a large purchase like a car or a small house, I would set a goal consisting of: a cost, a time period, and an ammount I want to dedicate in my savings. That way I have a general idea of when I want to have the thing that I am saving up for.

I hope this was useful in some way to get you to start budgeting. Money these days is tight, and I see it only getting worse in the future. The government has demonstrated in the largest model of WHAT NOT TO DO when managing a budget. That is NEVER spend past your means! NEVER borrow more than you can afford. Also, having a small something is better than having NOTHING and being BANKRUPT. Last word of advice, gold and silver are impeccable investment choices. The next best choice is land investments. Probably wouldn't be a bad idea to check out what are good SOLID investments!

Test Your Knowledge On Budgeting!

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