Kyle Dreger writing for Audacious Fox:

If you’re new to budgeting, I’d warn against any sort of app or website that promises to do much of the “budgeting” for you. More than a bunch of tools and apps, budgeting is a state of mind. Your goal is to become a good steward of your finances.

After reading this incredibly well thought out article, I had to ask Kyle if he was trained to be an accountant or a personal finance manager. For someone who isn’t in the finance profession, Kyle does an exceptional job of outlining the foundations of personal budgeting.

Budgeting is a scary word. Most people perceive budgets as constraints, limitations, or even threats.

In reality though, budgeting is merely a form of documented planning. By budgeting your finances each month, you are essentially creating a personal plan of how to allocate your own resources. If the plan is well thought out and accommodating to as many variables as possible, your budget won’t ever feel like a constraint. Instead, it’ll feel exactly how Kyle puts it:

Initially, budgeting may sound like a nerdy, oh-so-you-majored-in-accounting word, but it’s not. I’ve found budgeting to be freeing. I spend money on things I like, and I never worry about having enough to pay our bills each month. Part of this is the blessing of having a solid job with a good income; however, budgeting has helped create a lifestyle where, if I were to lose 3/4 of my income, my wife and I wouldn’t have to change a single thing about our lives.
That is an incredibly freeing place to be.

Absolutely spot on.