Money Monday - Budgets

Money Mondays 

Budgets

Since Monday's typically suck, we figured it would be the perfect day to talk about money. Both Vinnie and I had some pretty set goals from the time we were young about how we would like to be financially when we finally were on our own. From my own experience, I learned that I did not want to live paycheck to paycheck if I could avoid it. My own parents will tell you that I was a money hoarder starting at a young age; not the most delightful way to put it but there it is. Over the years, I've worked a numerous amount of jobs and tried to find the most efficient way to save money while not completely living as a hermit. The thing that I found the most helpful was creating a budget.

There are many tools to help you create a budget. If you google it, you have plenty of website/apps, spreadsheet templates, etc at your disposal. I personally do not use an app, just because I have an innate need to micro-manage (at least I admit it!). If I was going to use a website for a budgeting tool, it would be Mint.com. It has received wonderful reviews about its tools, safety, and analysis. 

Vinnie truly liked everything Mint had to offer. He enjoyed the ease of use and the fact that it will analyze every transaction you make and make a personalized budget. It takes the thinking out of it. It's great to have an independent, third-party look at your spending because it is an objective perspective. His only reservation, and the reason he no longer uses it, is because in order for Mint.com to be the most effective it needs access to all of your financial accounts. Even though they have amazing security on the site, it was something that Vinnie was not comfortable with. If you are though, enjoy it!  

No matter what tool you use for a budget, make sure you can customize it to meet your needs and add new categories if needed. When you are forced to make a budget, you are forced to confront your spending habits, both good and bad. If you are constantly wondering where your money is going at the end of every month, a budget will show you. It can show you how much money you can save each month by bringing your lunch to work a couple of times a week. When everything is laid out for you, you can see how big of a difference little adjustments can make. 

Next week, we will show you how we organize our budget, and what other things we keep track of while budgeting. 

**Remember, we are not certified financial planners. We are simply offering a topic to start a discussion about money with the young adults. Before making any financial decisions, please consult with someone familiar with your financial position.