1. Budgeting Basics - Introduction
  2. Budgeting Basics - What Is Budgeting?
  3. Budgeting Basics - Setting Up A Budget
  4. Budgeting Basics - Budget Bootcamp
  5. Budgeting Basics - Budgeting Tips
  6. Budgeting Basics - Goal Setting
  7. Budgeting Basics - Mistakes To Avoid
  8. Budgeting Basics - Maintaining Your Budget
  9. Budgeting Basics - Conclusion

By Amy Fontinelle

What is budgeting? Basically, it's making sure that you're spending less than you're bringing in and planning for both the short- and long-term.

Unfortunately, many people think of budgeting as depriving themselves and they avoid it like they do a diet. However, just like a diet is really just a program for eating, budgeting is just a program for spending. If you are hitting a mental roadblock when you hear the word "budget", just call it by a different name, such as "personal financial planning." That's what budgeting is, after all. It's a proactive approach, rather than a reactive approach, to managing your money.

Budgeting is an important component of financial success. It's not difficult to implement, and it's not just for people with limited funds. Budgeting makes it easier for people with incomes and expenses of all sizes to make conscious decisions about how they'd prefer to allocate their money. It can also help people save for retirement, emergencies, a new car or just about anything. For many people, having a solid budget in place, knowing how much money they have and knowing exactly where that money is going makes it easier for them to sleep at night. (For more on saving for retirement, see our Retirement Planning tutorial; Canadians, see the Registered Retirement Savings Plan (RRSP) tutorial.)

This budgeting tutorial will teach you everything from setting up a budget to updating it as your circumstances change, as well as getting back on track if you go off your budget. Whether you're a college undergrad, retiree or somewhere in between, if you're looking for a way to manage your money better and improve your financial situation, then this tutorial is for you.

Budgeting Basics - What Is Budgeting?

Related Articles
  1. Personal Finance

    This Is the Year to Start Budgeting

    Whether your issue is credit card debt, student loans (or the fact that Social Security isn't rising next year), it's time to learn how to build a budget.
  2. Personal Finance

    5 Reasons Why You Can't Stick To Your Budget

    You want to stay on track with your finances, but these fatal budgeting flaws may be holding you back.
  3. Personal Finance

    4 Easy Techniques for Budgeting Money

    Budgeting money is critical for everyone, but to be successful at creating and sticking to a plan, it’s helpful to have some tricks up your sleeve.
  4. Personal Finance

    Top 8 Ways To Stick To Your Budget

    If sticking to your budget is tougher than you thought it would be, here are some strategies to keep you going in the right financial direction.
  5. Trading

    Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.
  6. Personal Finance

    5 Ways To Make Budgeting Fun

    These easy tips can help make financial planning a breeze.
  7. Personal Finance

    How To Stay On Track With Your Budget

    Sticking to a budget and making savings is the only way to put yourself on a firm financial footing.
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center