Setting up a budget is like picking a diet. Fundamentally, you are going to eat less cash and exercise more restraint. When you go off the diet, you will at least know when and why. If you stick to it, you should get financially trimmer.
Some tips -
- Keep it simple. If it requires too much effort to maintain a budget, it will not last.
- In a household, have everyone understand and agree to the process. No household plan will work if certain members consider themselves exempt.
- Choose a reasonable measurement period. Some people may choose daily, others weekly, and still others monthly. It has to be at least monthly for it to have any real impact.
- Experiment with record keeping. Some people use envelopes for receipts, others use ledgers. Some switch to credit cards and check, rarely using cash for anything. Others carry a notebook and write everything down. Try a few different approaches to find out which one is the least burdensome for you.
- Separate required payments from variable. For example, rent or property taxes are predictable and regular. Cell phone bills, on the other hand, can be extremely variable and influenced by your choices. It is these variable expenses that are the primary focus of your budget.
- Assess your performance regularly. This review should occur at least monthly. The focus should be on any surprises as well as opportunities to save more.
For more, some other sites to visit are -
Family Budget Tips and Tips for Seniors.
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July 21st, 2010 at 9:14 am
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