Budgeting can unlock a future of long-term financial security. Why? It’s because budget allows you to see exactly where your money goes each month. From your monthly housing expenses, utilities, groceries, savings, debt payments, and more, you can gain complete clarity and peace of mind through financial organization.
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Inflation is certainly making it more difficult to stick to a budget, but it’s still possible with the right budgeting tactics and it doesn’t have to be overwhelming. Wall Street Journal explained that you can start with just a pencil and a piece of paper, which may be the most effective method.
Many people are already doing DIY budgets
The good news is that most people are already involved in some form of DIY budgeting. See how people manage their day-to-day finances:
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Online bank statements: 61%
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Paper bank statements: 28%
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Paper Worksheets: 25%
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Bank Budget Tool: 12%
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Third-party budgeting tool: 9%
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I don’t keep track of my finances: 8%
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Other: two%
While it’s great to use free or low-cost online budgeting tools and apps to keep track of your money, a quarter of people prefer manual budgeting using pencil-and-paper methods and old-fashioned spreadsheets. By writing everything down, you are forced to visualize your expenses, which can give you better control over your finances.
Budgeting is a valuable lesson about money
Learning how follow a budget from an early age and always having your finances organized is a valuable lesson about money. Why? It’s because learning this habit early in life can put you on the right financial path for years to come.
If you haven’t started budgeting yet, consider the methods above and find out which one is best for you.
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This article originally appeared on GOBankingRates. with: Why following a budget and tracking expenses could be the most valuable financial lesson you’ll ever learn
