What is Frugal Budgeting?

(Note: This blog is intended to be read from the first post to the last post. You can find the first post here.)

Introduction

If you want to spend your money as wisely as possible, you will need a budget. The Merriam-Webster dictionary defines a budget as  "a plan used to decide the amount of money that can be spent and how it will be spent." A budget will put you in control of your money instead of letting it control you. Frugal Budgeting emphasizes paying for needs first and minimizing wants so you don't run out of money at the end of the month.

 

What is a budget?

In its simplest form a budget is a list of all the ways you will spend your money during the month. Initially, it's easiest to start with a  one month plan and gradually expand it to a one year plan and even further for some.

In my opinion, a budget is more than a plan that is made at the beginning of the month. It should be something that tracks how well the plan is being followed. This will mean tracking every dollar spent during the month and as much as possible only spend according to the plan.

Why should you have a budget?

Managing your money without a budget is like trying to drive your car without your hands on the steering wheel. In one month of budgeting, I went from being short of money at the end of the month to having $832.45 left at the end of the month. 

What is different about a "Frugal Budget?" 

In my opinion, most people who read this blog will be close to living paycheck to paycheck. Therefore, this budget is needs centered.  By planning for expenses that are absolutely necessary, it will free up money for a few well-chosen wants each month. It will also help plan for future needs.

After only a couple of months, the frugal budget will be in control of their finances if it is possible for their situation. There should even be rapid improvement during the first month.

Conclusion

This blog is meant to be read from the first post to the last post. Initially, it will focus on my Frugal Budgeting spreadsheet which will come free in the book I'm writing now. It will likely be released in mid-August 2015. Until then, I'll include general information you can use now. 

I'll be assigning many tasks to complete along the way because that's the way I teach. This doesn't mean I believe my way is the only right way, but it is a way that will work.