Do I Really Need a Budget?
Excerpted from the bestselling book,
It's More Than Money — It's Your Life! 
by Candace Bahr, CEA, CDS and Ginita Wall, CPA, CFP®, CDS

Do you need a budget, or can you do just fine without one? Use this handy quiz to find out.

1.	When you get a raise, you typically:

	Treat yourself to dinner out or something you've had your eye on. and then allocate the rest to savings.
	Go on a shopping spree.
	Promise yourself again that you will draw up a budget.

2.	You're at the mall. You find a beautiful, handmade sweater-at handmade sweater prices. You know that you could really live without it if you tried. What do you do?

	Keep your wallet in your purse-you know you don't really need it.
	Think about buying it, but decide against the purchase because there's something else you would prefer..
	Buy it immediately. Money exists to be enjoyed.

3.	At the end of the month:

	There is always more month than money.
	You look forward to adding up your retirement plan contributions.
	You manage to pay all of your bills, save a bit, and not end up in the red.

4.	When planning your annual vacation, you:

	Use the money set aside in your budget for travel.
	Pay for your dream vacation with credit cards-you only live once, right?
	Never take vacations-you just can't seem to spare the money.

5.	If your financial habits were a song, the title would be:

	"The Low-Down, No-Dough Blues"
	"We Can Make It Through"
	"I'm Savin' It All Up For You, Babe"

6.	The grapevine at work is full of news about layoffs. Sure enough, you're next. What do you do?

	Pat yourself on the back for accumulating an emergency fund.
	Try to arrange for higher credit limits and a home equity loan.
	Plan the vacation for which you haven't had time.

7.	You know:

	The approximate amount you have in the bank and how much you have charged this month.
	The balance of your accounts down to the penny.
	The exact starting date of the best sales in town..

8.	When your favorite store announces a going-out-of-business sale, you:

	Get your plastic ready-you're going to shop until you drop.
	Buy your dream stuff; you'll skip your vacation this year.
	Go to the sale with your credit cards and come out with a bit more than you expected, but you'll pay it off within a month or two.

9.	Credit cards are:

	To be used for emergencies only.
	To be paid off every month.
	To be used to the max.

10.	Which best describes your budgeting style?

	You've noticed a pattern of emotional spending-when you're happy, sad, or bored (or any other excuses you can think of).
	You spend according to your financial plan, keeping your long-term savings goals in mind.
	You spend in cycles-running up credit card debt and then paying it down..

 

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