I feel as though I have had a financial epiphany. After several months of reading financial blogs, and scouring information on how to be the most fiscally responsible person i have finally come to the realization of how to properly make a budget.
I always begin with entering arbitrary numbers in the budgeting category with out any thought to previous months spending, and than get infinitely frustrated when numbers are inconsistent. It was not until recently that i realized that not only by setting up a budget with out any pre-conceived ideas of what i should be spending for the first few months makes it easier to predict how much i spend in every category. I also realized that the act of just tracking expenses decreases spending. something about seeing those numbers in bold red and green numbers makes it all the more real.
This will be the first month of tracking my spending but i can already see some major pitfalls i made in past attempts at budgeting and why so many others tout following your budget as a necessary step.
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