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2. Making A Budget

BUDGETING
Mint is a fantastic tool that links to all of your financial accounts. It:

  • Tracks your spending and your habits
  • Graphs your net worth
  • Allows you to set up a budget
  • Alerts you when you deviate from your budget.

Mint is easy to set up, easy to use, secure, FREE, and can be accessed from a computer, a smartphone, or a tablet.
 
If you prefer to set up a budget on your own, go to the LINKS section of this page and download our customizable Excel spreadsheet and simply follow the directions.
 
Print these spreadsheets out at the end of each month so that you can compare month-to-month activity and identify places you are spending money where you might do well to limit yourself.

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Comments

  • http://www.facebook.com/ianjsmith Ian Smith

    I’m definitely a spreadsheet guy… everybody needs a daily tracker to keep tabs on personal cash flow.

  • http://chrisdenman.co Chris Denman

    Mint’s mobile apps are great!! Have been using the iPhone one for a few years now!

  • Grace

    I’ve started Mint’s app too and it’s been so helpful. Crazy to see the different percentages of where your money goes each month. 



Self-Assessment Questions

1. What is the point of a line item for contingencies?

A. It is the best way to double check your math. B. Sh-t happens. C. It is the only way to balance both the income and expenses. D. It accounts for insurance expenses.

2. Which of the following is true?

A. A budget is a road map for fiscal discipline. B. A budget is needed to file a tax return. C. A budget is not necessary for college students. D. A budget is nice in theory but totally impractical.

3. Which of the following is not true?

A. A budget will show how much you are likely to spend in a given period. B. A budget should use gross income and not after-tax income. C. A budget is a good way to determine if you are saving money. D. A budget should take account of any income you receive, even if from a second job.

4. Why bother to compare your budget against actual income and expenses?

A. You should not bother. Let your budget marinate for a few years. B. It is the best way to find any math errors. C. It is required if you are going to file a tax return. D. Budgets are only estimates and need to be constantly compared against actual numbers.

5. What is as or more important than making a budget?

A. Itemizing all your expense categories. B. Taking account for entertainment expenses. C. Using a contingency factor. D. Living within your budget.

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Tools

Annual Budgeting Tool (Household)

Additional Content

Mint.com

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