What you do have to pay every month and how much money do you have to pay it? If you don’t know the answer than it is time you create a budget.  A budget is a summary of your income and expenses  for a given time frame such as a month. It is set up in a spreadsheet with rows and columns for items and costs. With a budget you will know exactly how much money you have coming in versus going out in bills. Making a budget is vital so that you know where your money comes from, how much you have to work with and where it needs to go each month. With a budget, there are no surprises because everything is itemized on your spreadsheet. Without a budget to work off of how can you know if you are living with in your means or if you are spending more than you are making? According to an article by Investopedia, some additional reasons for creating and maintaining a budget include: allows you to make short and long term goals, helps you save for retirement, guarantees you don’t spend money you don’t have, helps you to budget extra money in case of an emergency, sheds the light on possible bad habits, and helps you to sleep at night knowing that your bills can be paid each month.

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