Budgeting For Dummies

Chapter 1

Beginning with Budgeting Basics

IN THIS CHAPTER

Breaking down the benefits of budgeting

Checking out common budget pitfalls

Getting a quick snapshot of your financial situation

Raise your hand if you know where your money went last month. According to a survey published by Mint.com on December 11, 2020, 65 percent of Americans have no clue where they spent their money in the previous month. Basically, millions of people are saying that their money disappeared without their knowing its whereabouts. No wonder money is considered the number one stressor in today’s society! (It’s also one of the leading reasons people cite when filing for a divorce.)

I’ve been in the personal finance industry for over ten years, starting with blogs like Money Smart Latina and now as a contributor on Slate magazine and BuzzFeed. I’ve seen and heard many people talk about money. But one thing I don’t hear enough of is how accepting financial responsibility has helped them reach their personal goals.

If assuming responsibility isn’t an issue, or even if it is, you’re not alone. Millions of people are in debt, behind in retirement, or just don’t have any space in their finances to cover a minor ...