It’s a good time of year to tackle the topic. I’ll be taking a look at Budget Basics over a series of posts starting with ‘What’ and moving onward from there.

Most of us have a fairly good idea of what a budget is. Oxford defines a budget as:estimate or plan of how money will be spent over a period of time, in relation to the amount of money available

Quite straightforward. The definition suggests that it’s a good idea to document your budget as well as review your budget. Many of us have an idea of what we spend on what categories but if we don’t take the time to review what we actually spent against funds allocated to specific categories we aren’t using a budget.

The greater purpose of a budget is to be used as a tool to achieve objectives within a plan. In order to do this, regular reviews of the information in your budget will give you the knowledge to respond to budget hiccups and make adjustments as needed.