The dreaded “B” word. Budget.The only other word that starts with “B” that might generate a worse reaction in most people is the word bankruptcy.

Unfortunately, the word budget has gotten a bum rap. It’s basically just a PLAN. When you budget, you’re spending on paper, on purpose, before the month begins. But many people view a budget as a straight jacket that keeps them constrained. Freedom and budget just don’t seem to go together.

However, when you see that a budget is just spending your money with intention, you’ll actually experience more freedom than before. Many people say they’ve found even more money when they created a realistic budget and stuck with it.

Here’s some helpful advice about budgeting:

• Give it 3-4 months to start working. It won’t be perfect the first time you do it.
• Spend every dime on paper before the month begins.
• Over-fund your groceries category. Most people underfund that category.
• Husbands (if applicable) need to loosen up and quit using the budget as a whipping tool on their wives.
• If married, spouses need to do the budget together. The preacher said “. . . and you are ONE.”

Free Money Finance just had a contest on what the word budget meant to his readers. This was the winning submission:

You need a budget because building wealth is not possible without self-discipline.

A budget is an essential tool for setting goals; establishing reasonable boundaries that are necessary for meeting those goals; and measuring your performance and holding you accountable to those boundaries. If you lose ground, a budget will alert you to this fact, and you can adjust your budget to compensate. If you exceed your goals, a budget gives you some freedom to enjoy any excess you are blessed with.

A budget is an essential tool for exercising financial self-discipline!

For the rest of them: Why You Need a Budget