Personal Budgeting Strategies What Group Are You In?

By Eric Transue

Personal budgeting strategies vary from person to person, but three of the most popular strategies are below.

Not Keeping Track at All

The majority of people don’t have a budget and don’t keep track of their spending. When they want to buy something they buy it. These people usually are in the most financial trouble. They rack up huge charges on their credit cards. They also are more likely to overdraft their checking accounts leading to large bank fees.

Using A Spreadsheet

A strategy those trying to adhere to a budget often use, is keeping track of income and expenses with the help of a spreadsheet. If you already have software such as Microsoft Excel or have a Google Docs account you can set up your own spreadsheet. The layout of your spreadsheet is up to you, but it should have columns for your different income and expenses broken down into categories.

Using Budgeting Software

Budgeting software is the simplest way to stick to a budget. However, unlike the spreadsheet option it may cost you.

However, depending on the software you choose, you’ll have some features not available with a traditional spreadsheet. Some of those features include the ability to download your transactions from your bank’s website. You’ll be able to create quick income and expense graphs on the fly. You’ll also be able to quickly see how your budget and spending changes from month to month. This will allow you to quickly make the necessary changes to stay on track.

If you are just starting out with your budget you may want to try the spreadsheet option.

But if you are serious about budgeting and are ready to get out of debt and create a substantial savings you may want to jump straight to the software option.

Click here for more information about software you can start using today to implement personal budgeting strategies.

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