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Creating a budget is necessary in order to maintain financial freedom and live well within your means. If you don’t have a budget, how would you know what ‘within your means’ really is?
There are so many different ways to budget and each person needs to budget in a way that works best for them.
One thing to think about is whether you will use Forward or Reverse Budgeting. Reverse Budgeting is where you determine your savings goal for a future date and plan your savings based on that goal. Each paycheck, you put aside the money for savings first and then divvy up the rest for other expenses. Forward Budgeting or the Forward Roll is where you use projections to estimate your savings at a future date and you roll your extra money into savings at the end of the month.
Another aspect of budgeting is the budgeting system. There are many different types of budgeting systems, but to keep it simple, there is a Cash System and a Digital System. The cash system is exactly as it sounds. All in cash. No cards, no accounts, just cash. The digital system similarly is all in savings accounts and credit/debit accounts that are primarily accessed digitally.
With either direction or system, there are many different tools that you can use to support your budgeting plan. Some tools include the envelope system, the paper system, computer spreadsheets, and computer apps and programs.
Finding the right options for yourself can be a daunting task, but with some guidance, the right system can be chosen to maximize your productivity and potential success.
I’m not sure I really understand self-hosting. But it’s an intriguing thought I need to explore more as I have a new website coming next year.
Love this and have learned to much. Now to decide which way to budget and save.
Budgeting is definitely the key to helping us live within our means and save too, even on a tight budget!
I’ve heard great things about Tailwind. Thanks for sharing your experiences!
Yes! The best thing you can do is document, plan and stick to your rules, which isn’t always easy 🙂
Thanks for the tips. I need to do better with this. Money is tough for us.
This is great info! I love your blogging planner too – so creative!
WOW! These look like some great tools to keep on track next year!
Thanks for sharing. These tips are basic, but great reminders. I’m going to peruse the rest of your site for more tips. I can ALWAYS use help in this area both personally and professionally.
i love having a budget. it makes me feel so much more in control of our money. my only issue is that i don’t get paid the same amount from week to week so it can get confusing!
Living paycheck to paycheck sucks! Been there and done that way too much times in my life. 😛 Loving all these budgeting tips!
This is very informative. I’m not sure if I’m a reverse or forward budgeter. I’m starting to think reverse is a good option for me!
xoxo, Berniedette
http://petiteandtoned.com/
I’ve got a quiz up that you can take to see which will suite you better. 🙂 http://keepitsimplediy.com/2016/09/24/say-goodbye-living-paycheck-paycheck-choosing-budgeting-direction/