We started to discuss how I normally set up my budgets. It is always interesting how we all end up with budgets that we have absolutely no intention of completing. How many times are we broke at the end of the month and swear that we shall never be broke again. What other than just screaming and having a beer over it ,do we do to avoid budgeting issues?

We have seen the need to create a realistic budget that is based upon your needs and we continue with the discussion.

4. Always Base Your Budget on Your Paycheck

It seems obvious that a budget is based on your paycheck but this is not true most of the time. We all have some funds that we are expecting will be coming our way by a particular date. I call these wishful pay days. It is Murphy’s law that when we expect to be paid anything other than our paycheck, it somehow never comes on the day that we wished it would.

A good example is you budgeting to pay your mortgage on an expected windfall from your grandmother. You spend the rest of your paycheck on other things but on the day you are to get your windfall, your grandmother dies. It has happened before in various ways so avoid setting up budgets on income that you are not 100% sure of like your pay check.

5. Always Think Long Term Budgets

Do not fall into the trap of using up all your income just because you have a great budget. The first item in your budget should be 2 different savings plans. One long term and another short term. Try saving at least 10 % of your income in both. Life has some nasty surprises and you need to be ready for these.

Remember that every time you are saving, you are also increasing your income in the long run. So make sure that the first item in your budget before you even pay anybody else, is your savings. I make sure that my first, months, weekly check is covering my short term and long term savings goals.

6. Be Flexible

Try as much as possible to be as natural as you can with your budgeting. Do not kill yourself because your cable bill this month just went up by $20, just reduce your spending in something else , like ordering movies. If you have set your budget in terms of categories, you are then able to move your funds to the more important items just in case one of your items is above what was expected.

Next budget day, just change your numbers to reflect the new realities.

7.Get Another Job

Ok, I know this is not in your budget, but have you ever considered getting another job if your budget is not working out. I realized that when I got another 30 hours a week to work, I actually spent less and after a month of complaining of being tired, I got used to the new found hard work. It can be anything you like doing, just make sure that it’s something that you like doing as working more than 50 hours a week can be tiring.

Once you have reached your budget goals , you will find it much easier to create another budget for a more challenging item.

Good luck.