Saturday, September 26, 2015
Money Management – Budgeting vs a Budget
• BBR Productions Inc : Money Management – Budgeting vs a Budget
The difference between both Budgeting vs a Budget comes with process vs preparation. Budging is maintaining a cost effective spending cap. Spending less than is saved. Where as a Budget is the figuring of those caps. To budget is to set caps and restrictions. Figuring out each category of where and when to spend. Mastering how Budgeting works begins with understand a budget.
Starting with an average month expense list. Take that list to organize categories and place caps on those expenses. Figure out which expense are Wants vs Needs, and cut accordingly. Eating out is usually a 'Want' which can be cut fairly easily. Leisure is also a 'Want'. A 'Need' is rent, groceries, utility bills, hygiene, etc. Take 3 to 6 months of past bank statements and add up each category expense.
Once these Caps are figured into a person’s lifestyle it comes down to habit building. Keeping to strict restraints until money begins to overflow into a person's '3 Needs of Purpose'. Learning to organize and prepping for future months helps take managing control back over a financial budget. A yearly expense should be saved a little each month. That's a nice helpful truth!
PS... Can you find the monkey?
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