What's a Budget, and What's it For?

A budget helps you see where you are financially, plan your spending—by the week, month, or semester,—and make adjustments if you get off track. Setting up a budget doesn’t require satellite-based technology—although technology such as the CashCourse Budget Wizard Links to an external site., worksheets, and calculators can help.

With a budget, you plan your spending. That way, you can pay your bills, afford the necessities of life, and have some money left over to have fun or buy some of the things you want.

Often, the best approach is to take a hard look at how you’ve spent money in the past. Your credit card bills and bank statements will help you track some of your spending. Keeping a penny-by-penny record of everything you spend, starting right now, also is very helpful.

Once you have a week or two of actual spending records, you can see exactly what you’re doing right and what habits you need to change.

 

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