Why You Really Do Need a Budget (Even If You Don't Want One)

Like it or not, you need a budget. If for no other reason, it’s incredibly helpful when it comes to saving money for a rainy day. Because let’s be honest when things are going well financially, it’s easy to forget about that little thing called a savings account . Creating a budget doesn’t have to be overwhelming. Here’s a simple breakdown of how to start and what to consider along the way. Step 1: Know Your Numbers Before choosing a budgeting method, you need to understand where your money is coming from and where it’s going. Gather all your financial documents , including: Bank statements Investment account info W-2s and pay stubs Credit card bills Utility bills Loan statements (mortgage, car, student, etc.) 1099s or side hustle income Recent receipts (look back over 3 months if possible) Calculate Your Income Add up all the money you bring in each month: your paycheck, side gigs, child support, Social Security, etc. If your income varies, use your lo...