Unit 2 - Your Budget

A budget is your best guess of what your expenses will be.

Creating a budget and STICKING to it is vital to good money management. Sticking to a budget forces you to become disciplined with money. One of the main problems with budgets, which I have often done myself, is to place unrealistic expectations on yourself for the amount of money you will save and spend.

The first step in creating a budget is tracking all your income and expenses for 2 months prior to making a budget. This is being done currently for the course with the Expense Tracker. This will help you to create an accurate and FLEXIBLE budget.

There are software programs that can help you with it as lecturer Andrew Hingston has suggested such as Quicken or Microsoft Money. As of yet I have not seen these two programs but will post my thoughts on it on further blogs.