Budgeting Basics: Budgets Matter
Our financial lives can be summed up by a very simple equation:
Money Earned - Money Spent = Money Saved + Money Given
Everything about personal finance boils down to this. All the talk about debt, credit cards, 401(k)s, IRAs, investing, stocks, bonds, asset allocation, mutual funds, frugality, simple living, DIY, budgeting, high-yield savings accounts, and additional income has as its goal the enlargement of this sum. It is an unavoidable necessity.
Some of these topics attempt to generate more money - like investing - while others seek to reduce expenses - like frugality. I think both are incredibly useful, but it is ...