Budgeting For Dummies

Chapter 2

Breaking Down the Parts of a Budget

IN THIS CHAPTER

Tracking your expenses

Taking into account your current income and other sources

Exploring your financial goals

I’m always in awe of my best friends because some kick-butt people surround me. They do amazing things like play roller derby, hike the Grand Canyon, volunteer at the drop of a hat to help others, and take up random new hobbies I’d never have thought of. Many are also money savvy and can tell you if they can’t afford a random idea you come up with. I’m pretty sure they can tell someone no, not only because they’re organized but also because they’re financially aware. They know how much is in their checking accounts, whether they’re on track to meet their goals, and whether they can afford to go eat sushi with you.

Anytime you become aware of an area of your life, it benefits you and those around you. People often don’t realize that what’s happening inside them affects what’s happening outside them. Like my friends, when you become financially aware, your life can change in ways you haven’t even begun to imagine. You can make room for things that matter so you’re living life on your terms. But before becoming ...