Money Budgeting Made Simple

The most common form of money budgeting is to spend it till it’s gone.

We all budget money. The difference is whether the budget is working for us or against us.

Let me explain.

The most common form of money budgeting is to spend it till it’s gone.

This form of budget works well when we have few responsibilities. You earn you spend. Problems happen when you run out of money before the next pay. Students have advanced methods of dealing with this problem that include visiting friends for a free meal. There’s many a parent who knows that they’ll see their children towards the end of the pay cycle. For adults it becomes a little difficult turning up with the whole family on people’s doorsteps for a meal.

A second common method of money budgeting is what we call “nature’s budgeting method”.

You see this with baby birds. A better name for his type of budget is “feed the loudest”. The baby bird that makes the most noise gets fed first. You may also have heard of this budgeting method being called “squeaky hinge budgeting”.

In this budget, you pay the loudest first and forget about the other needs. You are always being pushed by your bills and never get to the point of controlling the situation.

The third form of money budgeting that is common is what we call “Old Style Budgeting”.

A second common method of money budgeting is "Feed the loudest ”.

Let me tell you something you already know. Few people get paid in cash these days. We use bank accounts that have direct debits and periodic payments. At a recent seminar when I asked how many people were paid in cash, one hand went up. If you’d asked that question 20 years ago more than half the room would have put up their hands.

Times have changed and our methods of money budgeting need to change as well.

That’s why we need new ideas for budgeting money!

We use our bank accounts differently to the old days so we need to set them up in a way that suits our spending.

There are only three ways your money can be used.

1. You can save money so you need a savings account. (Can be more than one.)

2. You can spend money paying bills. (So have a bill paying account where there is enough money kept for the bills)

3. You can spend money on your Day-To-Day living. (Have an account that you use for the items you need on a day-to-day basis.)

What you’ve just read seems simple, and it is. The exciting part about it is that by simple separating out your banking you can avoid so much trouble.

Here’s an example of how easy life can become when you get your bank accounts sorted. You are out on the weekend and see an item that you really would like to buy. The price is right and there is enough money in your Day-To-Day account to buy it. Before you sorted out your bank accounts you would not have known if you could afford the item or if there was a bill that had to be paid with the money in the account.

Once you have the banking right it’s time to look at a budgeting program that suits.

Take a moment to discover how the “Personality Budgeting Program” works; you’ll be wondering how you ever survived without it.

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Copyright 2006 Personality Budgeting – Budgeting Money and Money Budgeting