Budgeting Tips (1254)

Many people don’t like the word "budget". However, a budget can help you use the money you have more effectively. A budget is a financial plan for spending, not a tedious bookkeeping chore.

Keep it simple. You don’t have to write down every last penny you spend. Keep track of spending to the nearest dollar or even the nearest five dollars. This works only if you set your "breaking point" and stick to it. For example, if you prefer to keep track to the nearest dollar, set 50 cents as your "breaking point." If the amount to be recorded is $21.49, you drop the cents and write down 21 dollars. But if the amount is $21.50, you write 22 dollars in your records. Such a system takes some of the drudgery out of record-keeping.

Be realistic. Consider all expenses, including vacations, spending money, alcohol, tobacco, and hobbies. To build in a margin of safety in your plan, overestimate your expenses and underestimate your income.

Keep trying until you find a system that works for you! You’ll be glad you did.

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