How much should I spend on groceries this month? Can I afford this new TV? And can I hire more contractors to outsource business tasks?
I knew how to make money but not how to spend it efficiently until I began budgeting daily.
Budgeting is like learning a superpower that helps you be really good with money!
Here's how I have explained budgeting to my little daughter: So, imagine money is like your allowance or the coins you save in your piggy bank. When you grow up, you'll have more things to think about, like buying food, a house, or even going on cool trips. But to do all that, you need to be smart about how you use your money. That's where budgeting comes in—it's like making a plan for your money so you can buy what you need and save some for later fun stuff, too!
This will set you up as a grown-up to be really good at handling your money. You'll learn how to decide what to spend on, how to save up for important things, and even how to prepare for unexpected things. It's like learning a superpower that helps you be really good with money when you grow up! Cool, right?
Well, that also explains budgeting to grown-ups! I consider it the most important part of personal finance.
- YNAB: My favourite budgeting app to track my expenses (and paychecks). It’s invaluable to track my business finances, as well!