You don’t have to be a financial planner to know that one of the key ingredients of financial security is having a budget. And yet according to a Gallup poll, only 32% of U.S. households prepare a detailed budget. The purpose of a budget is threefold:
- To ensure you are not spending more than you make.
- To figure out how much you can actually afford to save.
- If you are spending more than you make or you’d like to save more, then it helps to figure out where you might be able to cut back.