It really does not matter whether you are working for a mega-corporation, a government or yourself, having a plan to calculate your income and your expenses is critical to your economic well-being … or even your survival. And … it is not rocket science!

“Budgeting lies at the foundation of every financial plan. It doesn’t matter if you’re living paycheck to paycheck or earning six-figures a year, you need to know where your money is going if you want to have a handle on your finances. Unlike what you might believe, budgeting isn’t all about restricting what you spend money on and cutting out all the fun in your life. It’s really about understanding how much money you have, where it goes, and then planning how to best allocate those funds.” says Jeremy Vohwinkle in an article entitled, Budgeting 101.

The process is simple enough, make a list of the money you expect to earn or receive for the next year. Then make a list including where you are going to spend.

You can commit these numbers to paper, a spreadsheet application or a computer software application, such as the many free ones found online.

When it is a government budget, citizens do have the right to inspect the agency budget. Many local government agencies make it easy for citizens to view budget and financial information. Manor Township, for example, sets an excellent example for online transparency in financial matters for their stakeholders.

Here is the 2011 Columbia Borough budget for citizen and stakeholder review.