The whole point of a budget is not to restrict what you spend, but to allow yourself to spend money without guilt, regret, or stress.
Less than 40% of Americans would be able to cover an unexpected expense of $1,000 with cash.
When it comes to budgeting, you need to be prepared for the worst to happen.
I recently received a request to breakdown my budget funds and what kind of things are covered by each fund. I am going to go in the order that they appear in my budget, so bear with me because I do a budget overhaul at least every year and at this point there is no particular order for the funds.
One of the hosts on one of the podcasts that I listened to once upon a time said that, before starting a budget, people should track their expenses for a month or two to see what they are spending. I understand why it might be appealing to track expenses and spending habits first, but in my opinion, it is more productive to create a budget based on financial goals and adjust spending habits accordingly. One of the purposes of having a budget is to assist in achieving financial goals by restricting unnecessary or frivolous spending.
Survive today, prepare for tomorrow, have fun. In that order. What exactly does that mean with regard to budgeting?