Just 35% in the latest eZonomics online poll managed to stick to their household budget in 2010. Of the remainder, 32% over spent, 4% under spent and 29% did not have a budget.
Having a budget is important – no matter how high or low your income is – and making one can be simple. As a first step, set aside time to review your financial situation. The video tutorial How much should I be saving? tells how to make a budget by assessing income, tracking fixed and variable expenses and setting savings and investment goals. Online tools, such as interactive calculators at mymoney.gov in the United States, can help track spending. Developing a habit of managing money can help avoid financial surprises in the future.
In the eZonomics video Why the rich need to budget as well, ING senior economist Ian Bright tells why budgeting is important to the rich and the poor alike. He says a study shows some low-earners budget and accumulate more wealth over their lives than some high-earners making the message clear: the rich need to budget as well. "It doesn't have to be complicated and the pay offs will be great," Bright says in the video.
Those who did not manage to keep to their budget in 2010 have a fresh start in 2011. And a New Year resolution can help kick start the journey to budgeting and building good financial habits. Tips to help keep to resolutions (detailed in an earlier eZonomics poll) include making the resolutions specific, planning small steps to meeting them and seeking help from friends.