Introduction: What is budgeting?
Budgeting is creating a plan to spend your money. Good budgeting is spending less than you are earning as you plan for your financial goals. It is the fundamental step in achieving financial literacy, and by extension, reaching financial security and freedom. Budgeting is the process of creating a plan to spend and invest your money wisely to meet your personal and financial goals in life. It should not be a mathematical exercise that we think we have to endure; rather, it is the result of self-assessment of our relationship with money and a necessary road map to steer us toward a higher standard and quality of living.
Budgeting is balancing your expenses with your income now and for the rest of your life.
Going to college is an opportunity for individuals to prepare holistically for a successful future through personal, academic, social and professional growth. Budgeting concepts apply to all students, whether you are a traditional first-year student, a transfer student, a graduate, an adult learner, military personnel, etc. Budgeting lies at the foundation of every financial plan. It does not matter if you live paycheck to paycheck or make $300,000 a year, a budget can help you account for that income, analyze spending habits and make informed financial decisions.
This budgeting module dives into the nuts and bolts of how anyone can learn how to make ends meet and prepare for a financially successful life, free of debts, but full of financial security and freedom.
For successful budgeting, you can follow five steps listed below. Let's get started!
Chapter 2. Collect financial information
Chapter 3. Track money coming in
Chapter 4. Track money going out
Chapter 5. Review cash flow and set up a budget
This was made possible in partnership with The Singleton Foundation for Financial Literacy and Entrepreneurship. This video and more videos like this can be found on Millionstories.com Links to an external site..