By MATTHEW GOLDBERG

Bankrate.com (TNS)

Budgeting is the financial equivalent of eating your vegetables. It may seem unpleasant, even grueling, but it’s ultimately good for your financial health.

Budgeting is also unpopular. Bankrate’s latest Money and Mental Health Survey shows that less than one-third (29%) of Americans reviewed their budget during a 30-day period between mid-February and mid-March.

“Few people like tracking their spending, and itemizing every dollar spent can be tedious and (time-consuming),” says Stephen Kates, CFP, financial analyst at Bankrate.

When it comes to using a system to budget, Kates suggests that the simpler, the better. Here’s why making a simple budget, and reviewing it, is worth your time. And here’s how to develop one that will work for your financial needs.

BANKRATE’S SURVEY BREAKDOWN Bankrate’s Money and Mental Health Survey found that Americans with higher levels of education were more likely to have reviewed their budgets.

Nearly four in 10 post-graduates (38%) and people with a four-year college degree (38%) said they reviewed their budget in the 30 days prior to Bankrate’s survey, which was conducted in mid-March.

This percentage was lower for those with some college or a two-year degree (30%). Respondents who have, at best, a high school degree (23%), was the group that budgeted the least.

TRACKING ONE’S SPENDING Although budgeting is the act of tracking how much money you have, there’s also the unpopular task of tracking your spending. According to Bankrate’s survey, about one-third of survey respondents (34%) tracked their spending between mid-February and mid-March.

WHY IT’S WORTH YOUR TIME TO BUDGET Saving money doesn’t just happen, says Lauren Zangardi Haynes, CFP, CIMA at Spark Financial Advisors. “Most people do better managing their spending if they don’t see a lot of money in their bank account. In other words, if your plan is to transfer what’s left in your checking account at the end of the month to savings, you’re setting yourself up for failure,” Zangardi Haynes says.

Budgeting helps you determine precisely how much you should be saving each month so you can save more. Knowing what you’re spending your money on, and how you’re spending it, can help you determine how much you need to save to achieve your financial goals. The lesson here: Pay yourself first and pocket it in your savings account.

Budgeting need not be a daunting task. It comes down to three things:

•Directing your direct deposits into different accounts

•Identify spending limits

•Being aware of your spending and savings habits Budgeting can help you save more Budgeting helps you plan where you want your money to go ahead of time. This helps you to spend your money intentionally, whether it’s for helping you get closer to achieving your financial goals or putting your money towards purchasing future goods and services that you value.

Zangardi Haynes says one of the underrated benefits of budgeting is the way it can help you shift the way you view yourself. She says frequently when people are focused on budgeting they focus on what they’re doing wrong.

“When you build savings into your budget or spending plan, you can start to shift the way you think of yourself from a spender, or someone who doesn’t manage money well, to someone who is responsible with money and capable of creating financial security for themselves,” Zangardi Haynes says.

On the other hand, not budgeting is akin to getting in your car and just driving to a new place without directions, with the hope of getting to your destination in a new place. HOW TO CREATE AND MAINTAIN A SIMPLE BUDGET Budgeting is a financial activity more people should be doing, Kates says.

“Structure your income and spending in such a way where you understand where the money’s going, which is essential, but you don’t have to do every little dollar and cents transaction on what you bought for coffee this morning,” Kates says.

Creating a simple budget takes just three steps:

•Determine your income.

•Make a list of your expenses. Don’t forget those recurring monthly debits in your expenses.

•Set your goal to have cash remaining after subtracting your expenses from your income. This way, you know how much money can be saved and how much money should be applied to other financial goals.

Once you determine your budget, consider automating your savings to help you save more – because, for many, it’s easy to forget to save.

Also, using a budgeting app can automatically aggregate your spending all in one place so you can see where your money is going when the expenses post to your credit card or bank account.

SAVING FOR AN EMERGENCY FUND The unemployment rate in the U.S. held at a relatively low 4.2% in May, according to the Bureau of Labor Statistics. Those who are employed should have, or be adding to, an emergency fund that contains three to six months’ worth of expenses.

You need to start somewhere, so start by budgeting for a small amount from your paycheck to automatically go into a high-yield savings account and the rest into your checking account. This is called split-direct deposit – and it’s a great way to start or add to an emergency fund, automatically.

Sticking with this plan, and not withdrawing that money, will enable your emergency savings to grow. And in the current interest rate environment, it’s easy to find a competitive online-only bank offering a yield that’s outpacing inflation. Just make sure the bank is a Federal Deposit Insurance Corp. (FDIC) bank, so you know your money is protected in case of a bank failure, as long as your deposits are within FDIC limits and guidelines.

But an emergency fund isn’t only meant to replace income due to being unemployed. It also helps you when something you own inevitably breaks or needs to be repaired, such as an automobile or home appliance.

SAVING FOR RETIREMENT You can’t go back in time to your youth to build a big retirement nest egg, but that shouldn’t discourage you from starting one now, even if you’re a few years away from retirement. Every little bit helps. Budgeting can also help you to stretch your retirement savings, even if you’re already retired.

While younger people have time on their side for their money to grow, eligible workers ages 50 or older have some perks that their younger counterparts don’t. One such perk is how much they can contribute to their retirement plans. This year, those ages 50 and older are able to contribute up to $31,000 to a 401(k), 403(b), 457 or a salary reduction simplified employee pension, or SARSEP, plan. (Eligible people under 50 are limited to $23,500.) And those between the ages of 60-63 are able to contribute an additional $11,250 to the $31,000 cap.

Younger workers might have more competing priorities and financial goals, especially if they’re earning less. At the very least, try to contribute up to your employer’s retirement plan contribution match, especially if you’re fortunate enough to work for an employer that does this.

Saving for any other financial goals Splitting your direct deposit into different savings accounts can help you save for different goals, provided that your employer allows this.

For instance, some people might want to have a high-yield savings account for an emergency fund and then another high-yield savings account to save for a new car.