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Welcome to the Luke1428 budgeting series. It’s a prerequisite for every personal finance blog to talk about budgeting, so here’s my shot at it. I’ll be dealing with many aspects of the budgeting process over the next few weeks, so buckle your money belts and lets figure out how we are going to save, pay some bills, and discretionary spend to our hearts content.
At its basic level a budget is a spending plan. Or if you prefer a cash flow plan designed to give you an idea of how money is circulating through your household on a month-to-month basis. Think of it as how your total monthly income covers your total monthly expenditures. Sounds like a big elephant to tackle I know.
It would be easy to jump straight to the how-tos and what-fors of budgeting but I’m going to go a different route in Part #1 of this series and attempt to answer the sickest question ever devised by mankind. It’s the question every parent LOVES (ha-ha) to hear from his or her inquisitive child.
