What Is a Personal Finance Budget?

Series Summary

Are you broke at the end of every pay period? Is your entire paycheck spent before you even get it to the bank? If so, you are not alone. More than half of America's work force is spending more than they make. And the problem is, you aren't blowing it all on foie gras and designer shoes, and yet you feel like you can never get ahead. Aside from trying to convince your boss to double your salary, is there a solution to exhausting psychological effects of barely scraping by, month after month, year after year? Tracking your expenses and creating a personal financial budget is a great place to start.

In this series of free online videos you'll get expert advice on creating a budget for your personal finances. Once you figure out where the money's going it will be easier to get spending under control. You'll learn how to use various methods for budgeting your money, from using computer software like Quicken, to the time-honored envelope method. You'll also learn how to maintain a budget and stick to it, and how to avoid the pitfalls that make many budgets fail. While none of these videos will help you earn more, the advice they offer should help you spend your money more wisely.

Video Transcript

"Hi! This is Alfred on behalf of Expert Village. Foreclosures this August were 53 percent higher this year according to TheBeehive.org. At Bankruptcy.com it states that the average monthly Chapter 7 filings for the 8 months ended January 31, 2007 was $32,600. March 31, 2007 Chapter 7 filings were $48,700 for a 49 percent increase. According to a recent USA Today, an article about debt, 78 percent of baby boomer's have mortgaged debt 59 percent have credit card debt, 56 percent have car payments. At money.CNN.com says spending money beyond yuour limits is dangerous but if you do, you've got plenty of company. Government figure show that many households with total incomes of $50,000 or less are spending more than they bring in. This doesn't make you an automatic candidate for bankruptcy but it is definitely a sign that you need to make some serious spending cuts. Americans are in the habit of borrowing to cover both short term expenses like those on credit cards and long term ones such as buying cars and it's time to budge. Now the word budget can conger up a dreary image of scrimping and sacrificing. So many people avoid the subject all together. But creating and following a budget means you can have the money for the things you want. Make a list of all the items large and small you need or would like to have but don't think you can afford. Many of them may be within your reach if you budget well. Think of creating a budget as a financial planning for your dreams. "