A budget is one of the most overlooked, yet powerful tools in a financial plan. You have to know what you have, what you don't have, and follow a "road-map" in order to get where you want to be!
If you stick to your budget, it will be the best friend you have, because a lot of financial stress comes from not knowing where your finances are, and not having a plan. In your budget is where you lay out your plan of how your dollars are spent, what debts are being paid down (read about debt), and how much you can save for the future.
Question: So why do so few people actually sit down and do a budget?
Answer: Many people just don't know where to start.
In answering this question in its simplest term, a budget should be your income minus your expenses. If your expenses are more than your income there are problems ahead, and if you are bringing more money in than you spend (which is the goal) you are doing great!
Actually breaking down and having a consistent budget each month can be a little more complicated, so access the free "Budget Calculator" and get to using the most powerful tool in your financial arsenal.