I was asked the other day, "What's so good about YOUR budgeting system?" I laughed as I thought to myself about all the great things my budget has done for me over the years and decided it was time to share a few of those things with my readers.

I first came up with the BuildMyBudget method when I was a sophomore at FSU. At the time I was often frustrated because I seemed to always forget about or completely miss a bill altogether. This happened for a variety of reasons,(like my roommates always throwing my mail somewhere where I wouldn't find it for three weeks) but perhaps mostly because I just couldn't remember all the bills I had and when they were due. I did what most people do and just paid whatever bills showed up in the mail. Many times I would miss a statement in the mail and by the time I realized I had missed a payment I would already have some kind of ridiculous late fee! So the first thing I did was write down all my bills and when they were due, so I would no longer be surprised when a bill arrived in my mailbox.

I soon realized after writing my bills down and comparing the total to my income that I simply didn't have enough income to pay for everything. Sure, I had student loans and a credit card to help me out but I was wary of acquiring a lot of debt(and regret!). So I decided I needed a way to figure out whether it was just a timing problem, something I could fix by getting a due date changed, or if it was an indication of a much larger problem. I spent a lot of time trying to determine the best way to tackle this problem before stumbling onto the most valuable concept of the Bmb method: Forecasting is the key to successful personal finance. So I built my first budget my sophomore year and forecasted my income and expenses for the next three semesters. It was amazing what I learned!

Once I started forecasting my budget, I was able to see how I could make the numbers work. I also learned a great deal about myself because I was truly motivated to shore up my financial situation and could now see what I needed to do to make it happen. I started reselling my textbooks, eating leftovers, cutting coupons, and cut down on material items I really didn't need. I was the guy who would always say, "that is a want, not a need," and always saved a bit more money because of it. I also made sure from that point forward that any expense I was aware of made it into my forecast as quickly as possible so I woulnd't be surprised when it came time to pay. This allowed me to see what was looming on the horizon and the time to prepare for it.

Of course forecasting is one of, if not the primary, benefit of the Bmb method. There are many others, but a few that aren't clearly outlined. Probably my favorite is that I can keep all of my passwords within my budget because I have it password protected. So, for each category of expense,password are a comment easily shows who it is that I have to pay and what the website login id and password is. I also hyperlinked each of the categories so that when I have to pay a bill, I just click on the category and it takes me right to Brighthouse Networks or Geico.com. Having all of this information in one place makes it a breeze to pay all of my bills quickly and easily and because it's virtually impossible to break into an excel spreadsheet without the password, a very secure option. I also use comments to track the confirmation numbers I receive from a website after I have payed a bill or the check number if I mail a check. You can also use comments to help remember what expenses you have paid.

Another big benefit is the time factor. There just isn't enough time these days to do everything and the last thing I want to do is sit down and categorize expenses for two hours. My budget allows me to reconcile, pay all of my bills, and adjust my future spending to compensate for any overrages within 15-20 minutes. Sure, when I first started the process it took some getting used to- but I quickly became a fan. Not only was I able to manage my budget quickly, but I could adjust my forecast just as quickly. Seeing that I could pay off my credit card in four months, buy the new tires I needed for my car in six, and still be able to buy Xmas presents for my family at the end of the year was one of the first realizations I made. I knew that I had goals I wanted to reach, and now I could finally see how I could reach them.

One last benefit that I want to mention is the sandbagging approach I take to my budget. I always over-budget on items such as utilities, gasoline, food and other variable expenses. This reduces even more surprises because more often than not, what I actually spend is less than what I forecasted in my budget. I love this approach because it always leaves a little extra change in my pocket which I can then put into Savings. Give this a try, you may find it works wonders for you!

There are many benefits to the BuildMyBudget method but the most important thing to remember is that you MUST have a plan, whatever it is. If you don't, you'll never get where you want to be financially or otherwise. I'm happy because my method helps me get on what I call the Stress-Free-Plan, which allows me to enjoy my life without having to stress about paying bills or wondering where I am headed financially. I want to see you reach your goals too, whether or not you use the BuildMyBudget method.

Have you tried the Bmb method?  What do you think?  As always, please share your thoughts and keep budgeting!

Chris Fitzgerald

BuildMyBudget.com