Why Sticking To a Budget and Tracking Expenses Could Be the Most Valuable Money Lesson You’ll Ever Learn
Written by
Adam Palasciano
Edited by
T. Woods
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Budgeting can unlock a long-term future of financial security. Why? It’s because budgeting allows you to see exactly where your money goes every month. From your monthly housing expenses, utilities, groceries, savings, paying off debt and more, you can get full clarity and peace of mind through financial organization.
Inflation is certainly making it more difficult to stick to a budget, but it’s still possible with the right budgeting tactics and it doesn’t have to be overwhelming. The Wall Street Journal explained that you can get started with just a pencil and a piece of paper, which might be the most effective method.Â
Many People Are Already DIY Budgeting
The good news is that most people are already engaged in some form of DIY budgeting. Here’s how people track their day-to-day finances:
- Online bank statements: 61%
- Paper bank statements: 28%Â
- Paper spreadsheets: 25%Â
- Bank budgeting tool: 12%
- Third-party budgeting tool: 9%Â
- I don’t track my finances: 8%
- Other: 2%
While utilizing free or low-cost online budgeting tools and apps to keep track of your money is great, a quarter of people prefer manual budgeting using pencil and paper methods and old-fashioned spreadsheets. By writing everything out, you’re forced to visualize your expenses which can give you a better handle on your finances.
Budgeting Is A Valuable Money Lesson
Learning how to stick to a budget early on and always having your finances organized is a valuable money lesson. Why? It’s because learning this habit early in life can set you on the right financial track for years to come.
If you haven’t already started budgeting, consider the methods above and figure out which is the right one for you.
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