What is Budgeting?

Are you new to the world of budgeting and not sure where to start?

Well, friend, your search across the great expanse of the internet just ended, because I have put everything you need to know about budgeting in one place!

My hope is that you’ll see the budget for what it truly is: an easy approach to total life-change!

So… What is Budgeting?

A budget is a tool that helps you track your finances—it’s a detailed plan of your income and expenses for a given time period.

Simply put, a budget is a plan for your money.

Without a budget, you’ll earn money and spend money. You might even save money. But you won’t tell your money what to do, and inevitably, you’ll watch as it passes through your fingers.

Creating a budget puts a stop to mindless spending by bringing every dollar you make to the forefront of your brain. And when that happens, there’s nothing you and your money can’t do!

Budgeting Defined

Before we talk about what a budget is, let’s talk about what it’s not.

Keeping a stack of receipts at the bottom of your purse does not equal budgeting. Neither does paying your bills on time (although you should definitely do that!). We don’t even count making a plan for some of your money while neglecting the rest.

If you’ve tried any of the above tactics and they didn’t seem to make a difference, there’s a good reason: You weren’t actually budgeting. In a way, you were freestyling.

Powerful budgeting—budgeting that changes everything—includes . .

  • A plan that’s written down or stored digitally.
  • A plan that’s created before the month begins.
  • A plan that accounts for every dollar you’ll earn.
  • A plan that gives every dollar you’ll spend a name.

Pretty approachable, right? Don’t worry if you’re still a bit overwhelmed or confused—just keep reading!

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