A budget is a prior, detailed written record of your income and expenses within a certain period, which must be realistic, since you will need to strictly follow it if you want to reach your goal.
Thanks to it, you can have more control over your expenses and identify unnecessary ones, know your savings limits and know what your ability to pay is so as not to end up in debt.
According to the National Commission for the Protection and Defense of Users of Financial Services (Condusef), in Mexico, only two out of 10 people have a budget.
Added to this, There are several myths about how you should NOT budgetso the Condusef listed the most important:
I can keep a mental record of expenses and income: The budget must be in writing. Register your accounts in a notebook and so you will know what you are using your money for, if you do it well or correct some points.
The budget must be monthly: This is not completely true either, since although it is the most common period for the payment of services (telephone, rent, credit card), it is not a rule, you can do it according to the periodicity with which you receive your income : weekly or biweekly, for example.
Organizing a budget is difficult: The Condusef assures that this is not true, since it is a habit that you have to practice and form. In a short time you will get used to doing it and it will be easier for you. Making a budget can take you less than an hour.
It cannot be done with a variable income: On the contrary, if the income is generally not the same, it is important that you make a budget so that you take care of what and how much you spend. As advice, it is better that when recording your income you assume that they are going to be lower than they can be.
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