Friday, September 2, 2011

OMG... The B word. Part 2

Now I will answer why budgets are important.

I guess for you to understand why budget is important, I better tell you what a budget is. I got this definition straight from one of my text books so it may be a little scary but I will explain things to you later.
A Budget is a detailed plan for the future usually expressed in quantitative terms.

We always need to plan for the future... All of you got so excited that I was going to have a Baby, but unfortunately my budget is not large enough right now to support a baby the way I want. It's in the future we are planning on it. Quantitative terms are the amount of money we make. The amounts we plan to spend of things. The math of a budget. It's important to know what percent of money we need to spend on things.

Check out this link:
I was shocked when I realized how much more I was spending on things then I needed to be. Play around with the calculator. Budgeting is a lot easier for you to figure out how much you should be spending on things. Some things you will have to spend more on, for me I spend a lot more on utilities. It was more around 20% for me. Notice clothing you should only spend 2% and recreation you should only spend 5%.

Just because you can't spend as much on desired things doesn't mean you can't have a good time. You just have to find a low cost way of doing it. I still shop and buy clothes all the time. When I go into a clothing store I start at the back. I search all of the clearence racks first and try to pair them with a coupon. Maurice's always has good clearance and I love Wal-Mart's 3 dollar rack. Search for deals and use coupons when going out to dinner. I love COSTA VIDA'S dinner and movie special. The movie tickets can be use any time and mine didn't expire until 2013. We were spending $20 on dinner any way might as well spend 5 more and get the movie tickets. Then you have a date all ready saved up. Participate in free events on campus. There is tonz of free stuff, even for community members. Just because you find a good deal doesn't mean that you can afford it. Don't over do it and keep track of how much you spent.

I encourage all of you to start tracking all of your spending. Save receipts and watch your bank accounts. Doing so will make your budget a little more simple and we are becoming one step closer to no more ramen noodles. More to come on BUDGETS......

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