It seams like a respectable first real post, the importance of Budget. Budgeting is a very important process that everyone must do. The dangers you can run into by not budgeting are overdraft charges, late fees, no savings, and an all in all a smaller bank balance, not to mention the dreaded paycheck to paycheck financial health disease. If you have a Budget (that of course you stick too) you find yourself not buying the candy in the check-out line. You find yourself looking more closely at price per ounce of items at the store instead of just assuming bulk is the better deal.

Creating a Budget truly is easy mode too. A simple Microsoft excel document (or open office if your man enough to use it) and about five minutes a day, or if you prefer you can do it the old fashion way with a notebook ledger. The technique that I use is to then list all of the expenditures that I have to pay (rent, gas, electricity, food), for the variable costs I look at last month and one year ago cost to get an estimate of what I will pay, Then I add a fixed %(usually around 5-10) to the budgeted price. The reason I add this 5-10% to the estimated price is because it is a lot better to be under budget then over. At the end of the month I look at what I actually spent compared to budgeted. Left over money gets sent to a savings account. I am sure that if i didn’t budget I would not have as much money left over at the end of the month.