I was just over at the YNAB (You need a budget) website and noticed they offer a free budget book for anyone interested in starting a budget. Granted I’m sure they want you to also buy their product, but the book is a great primer for those looking to start budget building.
The book is broken down into four separate chapters which include:
1. Give Every Dollar a Job – For each dollar coming in, have a place for it. Give it a home in your budget by designating a fund for it. This is a main principle in envelope budgeting which allows you to separate funds by their “job.”
2. Save for a Rainy Day – Build an emergency fund that gives you a cushion in case you get a leaky roof, lose your job, or experience some other unexpected financial event.
3. Roll With the Punches – You’re not going to get your budget right the first time, and nearly everyone will break their budget at one point or another. However, you’ve got a choice to “roll with the punches” and get back on track, or let it beat you down.
4. Stop Living Paycheck to Paycheck – This is a biggie and one that everyone should take seriously. It ties in nicely with number 2, but in general if you’re living paycheck to paycheck you’re only one week’s pay away from financial disaster. You might as well be tight rope walking with your financial future.
For anyone just starting out with their budget I think the YNAB free budget book is a good primer that’s free, quick to read, and has rock solid advice.
You can find the free budget book from YNAB over at their site.