A budget is like a map for money. It shows you where you want to go financially, and how you’re going to get there. Many of us approach our budgets differently, and it often depends on your personality type. Maybe you are driven, and you already have several Excel docs with your budget and spending plan already. If you’re like many people, you may not even write down your bills, but just pay them as they come due.
I have seen some people keep meticulous records of their spending while others have a spending free for all (these are usually the people who have more debt). Just imagine if major corporations did not keep track of their spending. A quarter million in advertising here, a half million in production costs, and maybe just enough for employee paychecks- WRONG.
While your overall budget personality may not change, we need to change your view of your money. You are the CFO of your home’s budget. It is your job to make sure that the balance sheet is maintained and that all accounts payable and receivable are dealt with each month. While you don’t have to run your home like a business, you should treat your finances as though you are the captain of your ship. Otherwise, your boat might be spinning in circles, and you wouldn’t even know it.
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