What's the Big Deal About Budgeting?

You may hear Dave talk often about budgeting. Yeah, I really need to do better at that, you say to yourself. But have you thought about why budgeting is so important?

Well, for starters, a budget tells you what's coming in and what's going out. People who operate on a budget know exactly what's going on with their money, whether they come up short each month or they are able to stash dollars away in their savings account.

Facebook fan Colleen said, "A budget is a plan, and success comes easier with a plan. Having a budget brings stability and peace to my marriage and home life. It also gives us a sense of security knowing where every dollar is going for the month. Don't know how we ever [operated] without a budget!"

You Can Have Fun!

For many, budgeting causes feelings of fear, intimidation and anger. But it doesn't have to be that way! People who are scared or overwhelmed at the idea of creating a budget just haven't found the key to success yet. Sure, it takes some time and effort to create a budget that really works, but once you find a plan that works for you, the hard part is over! Crunching the numbers and allotting a specific amount to everything you use money for is tough, but it's worth all the effort it takes to make it work.

And like Ron, another Facebook fan said, "It beats the alternative of trying to figure out where your money went!"

There are a lot of misconceptions about budgeting. Many people think that the dreaded "B" word means they are headed toward a straight jacket with their money. One myth about creating a cash flow plan is that it leaves no room for fun things like movies, eating out and vacations. This simply isn't true. With a good working budget, you will find ways to make the fun things possible.

Like fan Jason explained, he budgets because "it's nice to see where the money goes each month and know how much we have to spend on specific things. Peace comes from having ‘blow' money budgeted in. It's wonderful to know we have a set amount each month that is ours to do whatever."

You Can Stick To It!

In order to make your cash flow plan work, you have to actually do it. Don't let the fear of what you might find stop you. And don't over-complicate things either. All you really need is paper, a pen and a calculator. It's as simple as writing down everything that requires money each month and putting an amount next to it.

Once you have a plan in place for your money that actually works, stick with it! Too many people get lazy and "forget" to do their monthly budget. Don't let that happen to you. A sense of freedom and security comes once you have created a budget for your life.

According to Ramona, a budget gives her peace. "My husband and I are on the same plan, and we can see how we are working toward our goals on a daily basis. This gives us motivation to keep on going."

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