So far in this Pretty Penny Budget Series we have talked about the tools you need to get started, how to set them up, and how to use them efficiently. Now we are ready to dive even further into starting a budget by comparing your income to your expenses and to actually setting a budget a long with financial goals.
Everyone always talks about their “budget”. Sure I heard it all the time and I even used the word myself, but I don’t think I really understood how to use a budget until the last couple years.
I instantly have anxiety when I think about how my husband and I used to run our finances when we were in college. We would do things like pick an apartment based on nothing else other than what we “thought” we could afford. We never sat down to look at our income and actually run the numbers. Stressful to think about!
After many “lesson learned” experiences we have a system going for us right now that works pretty good. It’s not perfect but very helpful and a huge stress reliever. When finances run smoothly (this doesn’t mean we have a lot of money, just that we manage it better) it’s amazing how other things in life run better.