You would be hard pressed to find a more unsexy word than “budget.” Just say it out loud. Yet, a budget is the most powerful tool you can use to become financially successful. In fact, keeping tabs on one’s expenses is a primary habit of wealthy families.
Consider that a wealth study determined that two-thirds of American millionaires could tell you exactly how much their family spends each year on food, clothing and shelter. Meanwhile, a 2013 Gallup Poll found that an eye-popping two-thirds of all Americans don’t have a budget.
What group do you fall under?
Many people simply don’t know how to build a budget, or they lack the motivation to build one because they feel it is too difficult to manage and won’t provide any tangible benefits.
In fact, a budget is extremely easy to create; especially, with so many budgeting apps freely available to download. It can provide many benefits. A budget acts as an x-ray of your financial health. You can see your entire financial picture and diagnose any harmful spending habits that need your care.