Budgeting

Does this scenario sound familiar? It's the first of the month and you have just received your paycheck. You remember that pair of shoes you saw a couple of weeks ago that is a perfect complement to the outfit you're buying today, so you buy them as well. Some friends call and you decide that it would be nice to treat them to a few dinners, so you pick up the tab. All of a sudden, the middle of the month arrives and you have unpaid bills, and no money to pay them. This doesn't sound possible so you begin to add up all of the expenses and it suddenly hits you. The truth is individually the expenses might not seem like much; however, put them all together and they make up a sizable chunk of your income. Sound familiar? Well unfortunately, it's a common story for many except those with exceptional restraint and those using good personal budget software.

This is a typical example and shows us why it is so important to budget our money. The most common causes of financial problems is buying things that you can't afford or not having a handle on where you actually spend your money. Using a budgeting software program can help you to avoid this well known danger. These applications, if used properly, will help you keep track of your income and expenses so that you can see for yourself and have a better understanding of how and where your money is spent. While some spreadsheet programs for this purpose can be quite tedious and complex, a budgeting software program is much more intuitive and offers many more bells and whistles. Without a doubt, the "zero-sum" method is the best budgeting program that I have seen. This principle essentially illustrates that each dollar has a specific designated purpose such as your regular monthly expenses, and especially debt reduction. In this way there is no idle cash lying around, plus you can also budget for future purchases. The temptation to spend any excess funds is gone.

While many questions are raised regarding the use of personal budget software, you need to know that many individuals have benefitted from these programs. A current survey of users of a well known financial program discovered that on an average of one month of using the software, they were able to reduce their debt by approximately $500. Try and gauge the impact this could have over your finances if you could reduce your debt by $500 or more each and every month. If paying debt is not one of your worries, then estimate how quickly you will be able to purchase the luxury car you want or that dream vacation you have been saving for. It really doesn't matter what situation your finances are in, you simply can't afford to be without good personal budget software!

I know how difficult it can be to start a budget, but I can tell you after many years of counseling individuals and married couples, that budgeting is extremely important for financial well being as well as a happy marriage. In fact, it's wise to begin teaching your children at an early age the importance of creating a budget. You might be surprised what they will know about it, and how it will benefit them later in life. There are a number of personal budget software programs available, some fairly basic, and some just too complex. We highly recommend those that use the "zero-sum" method where every dollar is allocated, and you budget the current month expenses on the income received the previous month. A very different approach that really works! So please, don't delay any longer. Get the personal budget software that is best for you now and stop living paycheck to paycheck.