How To Create a Budget
Learn How to Create a Budget for Your Budgeting Personality
A quick search on the internet for the search term how to create a budget, will result in millions of hits. You will discover everything from individuals advising you how to budget money to others selling some software program to make the job easier.
Some of the software programs that tell you how to create a budget run the gamut from very basic to highly complex with a large variety of reports. Many of the programs are similar, but you will eventually find a few that may suit your own particular budgeting personality better. Finding one of those will definitely make the job easier for you.
An individual will learn how to create a budget in a different way based on their individual budgeting personality. We’ve come up with a few budgeting personalities over the years and will give a brief description of each:
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- A Budgeting Joan of Arc – The individuals that fit into this category usually give too much, to their disadvantage. Others tend to take advantage of them which can often place them in debt because of their giving nature.
This personality tends to make money fairly easy and does not spend excessively, but they do give a lot. They normally don’t care about learning how to create a budget because that would interfere with their giving.
They tend to set themselves up with the normal accounts of retirement plus an emergency fund and another for their giving. Granted, this personality type is rather rare, especially now during unfavorable economic times.
Since this type tends to make money more easily than some others, the amount of their giving increases as well.
- A Budgeting Hothead – This personality has absolutely no interest in learning how to create a budget. Normally, they don’t save and have no desire to control their spending habits.
No matter how you may question them, they will always come up with an excuse for their spending and will never admit to mismanagement of their money. These individuals often become stressed out living paycheck to paycheck, but quickly change when they can continue their spending.
This budget personality is in need of a report that compares debt to income. They also need to learn how to create a budget that will allow them a personal spending allowance after all other budget expenses, including savings, is taken care of.
This budget personality tends to be spenders and not savers, so they will put less money into savings, in order to allow them a little extra to spend.
- Budgeting Apathy – these individuals do not want to learn how to create a budget because they simply don’t like dealing with money. They usually don’t care how much money they have or how much they have spent, but somehow they tend to find a spending limit and stay within it.
Normally, it isn’t too difficult to show them how to create a budget.
Since they don’t like to deal with money, they have peace of mind in knowing that their bills are automatically taken care of each month.
- A Budgeting Controller – This type will review every receipt for purchases down to the last penny. They can’t tolerate waste or money not being spent wisely. Even if they have a very comfortable income, they still tend to feel as though they don’t have enough.
This type personality has no problem in being able to control their finances. They tend to have a liking for complexity, so having a savings account for each of several different purposes is normal. They also like to see their money growing which helps them emotionally. They know how to create a budget and the more detailed, the better.
- Money Gods and Goddesses – This personality loves to make money and they usually are able to make it easier than the other types. They also seem to have more than they need and they enjoy playing with it.
One would think that their primary focus would be on making money, but that is not the case. Their primary focus concerning money is enjoying all that they can do with it, especially helping others and making a difference in the world.
This personality, too, knows how to create a budget, and they will set aside amounts for investments and philanthropy.
They enjoy having several accounts, especially in the investment area. They like to see their main investments grow, but they also like to have an amount set aside for more risky investments. Charity and philanthropy are very important to them, and they will allocate higher amounts for these purposes.
You will see how to create a budget that will work for you, and one that is easier to prepare, once you establish your budgeting personality. Please comment below and tell us if you have any insight on how to create a budget based on your budget personality.
Gust Lenglet is the CEO of HBS Financial Group, Ltd., an accounting & tax preparation firm in Maryland. He has more than 25 years of experience in the banking and financial industry. Gust started his career as a loan officer at a major national bank, and then moved on to become controller of a major law firm. In recent years, he has written many financial articles that have been published on Ezine Articles and many websites.