A budget is basically a plan for spending money based on how much money you make or have saved up. A budget lays out the things you need to spend money on and then accounts for things you would like to spend money on or save for.

It’s all about the money coming in and out. You want there to be more money coming in than there is going out. Budgeting is controlling this ebb and flow of money and keeping yourself from ever hitting rock bottom (and rock bottom is actually quick sand…with leeches… and an Aztec priest at the bottom ready to sacrifice some peeps with a jagged, blood-encrusted knife).

Budgeting helps identify the things you need and things you can cut back on like magazines, video games, or Pringles (once you pop you really can’t stop).

Budgeting can help you save for things you want. You might be looking for cooking classes in Paris with a Julia Child impersonator or a jet black Corvette with a red, fire-breathing cobra on the hood (hot girls not included). If you can find a price, you can usually make a budget (albeit perhaps a super long-term budget).

You can budget for any time frame you want, annually, monthly, weekly, or even daily if you are just one budgeting beast. We would suggest a monthly and annual budget, so you can set both short term and long term goals. Plus, once you have one monthly budget, you can pretty much use most of the components over and over again.