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Budgeting

Question: Why is budgeting so hard? Is there a way to make it easier?  
- Taneesiah
 
Answer from Ben Leonard, Personal Finance Expert - Milk Your Money
 
Creating and sticking to a reasonable budget is not hard as much as it can be annoying.  It forces us to sit down, analyze and put the reins on our loose spending habits.  Reflecting on our spending habits is never easy, no matter what the objective.  Budgeting requires a dedicated spender with a good understanding of where you stand financially on a day-to-day or week-to-week basis. 
 
So how can you make budgeting easier?  Most importantly, make budgeting a habit.  However you decide to layout your spending, it should be done in a consistent manner.  Second, your budget has to be reasonable and afford you the freedom to live. Otherwise, what’s the point?  Third, all of your expenses should be included in your budget. Don’t leave anything out—including savings contributions.
 
Lastly, get others involved in your budget. The more people you have helping you spend wisely, the better. Your finances are not a secret and should be discussed with your family—we all need the backup. Good luck!  
 
 

Learn How to Make a Family Budget

Making a family budget can be very easy, but getting started can sometimes lead to frustration.  Here are four simple steps to put you on the path to financial control.
  1. Make a List of Income and All Expenses - For instance, if you make $1,200 a month but might get some extra money in the future, budget yourself at $1,200.  Extra money can then be looked at as a bonus.  Also, be realistic with your expenses. If you put down $0 a month for haircuts or other beauty treatments, you probably won't be able to stick to it.  Better to cut back on the number of visits to the barber or salon than to cut it out entirely.
  2. Add Up Your List - Once you made your list of income and expenses, your income should be more than your expenses.  If it's not, then you need to cut expenses. Set a target for saving money every month. Again, be honest and reasonable with any cuts you make.  You still need to eat, so don't cut out the grocery bill.  But you can find ways to save on your food purchases through coupons and smarter buying.
  3. Include Your Family - Let your family know about your budget decisions. You should also let those who are old enough to understand the process help you make tough choices that need to be made.  For example, if your teenager has a cell phone, maybe he or she will consider giving up texting to keep a movie night out.
  4. Maintain Your Budget - Creating a budget is just the start. The only way it will work is if you remember to update your expenses during the month to make sure you stay on track.

For more help, visit the Beehive's online budget tool. 
 
 
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