**The first step in mastering finances.** Having a budget is literally the first step in mastering your finances. Without a budget you're flying in the dark. Budgets tell you where your money is going (and the size of your [[Burn Rate]]), where your money will go, and how big your [[Emergency Fund]] needs to be. Your budget should include: - How much money are you making? - From where? - How much money are you spending? - To where? - On what? Typically budgeting practices utilize budget ‘Categories’. There’s no ‘one way’ to implement a budget or to build your categories. Apps like Mint have dozens (if not 100+) categories pre-built. On the opposite end of the spectrum is a budgeted method like what’s recommended in the [[Budget Boot Camp]] [[NYMO]] method, which uses 4 categories. There's also the [[Flex Budgeting]] system, which uses 3 or 4. Budgeting means that, because you'll always be a _little_ worried about money, you'll never need to be **really** worried about money. It's a [[The Price of Security is Insecurity]] situation. **** # More ## Source - [[Your Money or Your Life]] - [[Budget Boot Camp]] ## Related - [[Burn Rate]] - [[NYMO]] - [[Emergency Fund]] - [[Personal Income Spending Flowchart]] - [[50-30-20 Rule]] - [[3 Personal Resources]]