Keeping your budget process simple.
Many financial counselors will have you complete
a complex four‐page budget (spending plan). This
is not a simple process. For most of us, this can
take the fun, and simplicity, out of budgeting.
These budgets will ask for gross income (before
taxes and other deductions), then ask for all of
your tax information and other deductions. To
these counselors I ask, “What is the purpose of this
exercise?” We are not looking for a Net Worth
analysis but a simple spending plan. When we
do a Net Worth analysis, we need more details and
more financial forms for a complete financial
picture.