Simple. The value and importance of money as an american system of trade and bargining.

We need money to pay bills, eat, travel, etc. Budgeting is a formula that is made to allow you to hold on to some of that money that is to be used towards expenses that are accured during the month.

We all should try to take time to learn to budget our money a lil better.

Much of the confusion about budgeting comes from failure to separate 2 very important statements.

1. Personal Cash Flow Statement
2. The Budget

The personal cash flow statement is where you track all of your expenses. This is the document that teaches you where your money is coming and going. It also tells you what your cash flow is.

You use the information from this worksheet to set spending goals. That is all a budget is... spending goals for where you want your money to go.

Again, the personal cash flow statement tells you what's happened with your money. A budget allows you to set goals for what you want to happen with your money in the future.

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A budget helps you answer these three simple questions:

1.) where does your money come from?
2.) where does your money go?
3.) how much are you saving?

Once you understand your inflows and outflows you have a better chance of figuring out how to use your money more wisely...and maybe increase your savings.

You can find more info on budgeting here: http://www.filife.com/topics/budgeting