in Plan by Lacey Langford, AFC®
A budget is a plan for how you’ll manage your money by tracking the dollars you earn and spend. Rule number one in making a budget is…do what works for you. Trying to use your BFF’s method of a spiral notebook with a bunch of colored tabs may not be the way to go for you. Especially if you find it complicated and confusing. A budget is pointless if you don’t use it. It’s best to try a couple of methods to find the one you’ll use and stick with.
Example: if your car registration is $75 per year, divide $75/12 equals $6.25. Now you put $6.25 in a savings account, and by the time the bill is due, ta-da, you’ll have the money in your account.