The first year of my budgeting journey was a very frustrating time. Wasn't I doing everything right? I was writing down my categories, assigning limits to each category, but at the end of the month, I would overspend in each category. I would get really excited about starting a new method, use it for about a month, and then get frustrated because I couldn't stick to it. I tried the Calendar Method, the Cash Envelope Method, Monthly budgeting, Percentage Budgeting, and the Half Payment Method.
Over a period of a year, I tried every budgeting method known to man. I created my first budget in Excel in 2011, and it was a complete failure. In fact, the process of finding a system that you can stick to is a lot harder than people think. When you have paid off your high interest debt, and have money in an emergency fund it is time to think about investing Learn more about investing.It can take years for some people to find the right budgeting method that works for them. Having emergency money also gives you a good sense of confidence in life. It must be easy to get at (cash or bank account). More if you can (some people suggest 3 months salary worth). A friend might need help.Īt least $2,000. Things break down and need replacing or repair (plumbers are expensive). If you have any high-interest debt (such as credit cards), pay those off first! Emergency Fund Now you get to decide what to do with your left-over money. Take out cash from the bank and put it in individual budget envelopes. Stay within your budget to always feel good about yourself. Right: the shoes cost $120, I am spending $120Īlso remember that the excitement of buying often leads to a let down feeling later. Wrong: those $200 shoes are on sale for $120. Think of your budget as a strict but kind friend. Try to discipline yourself not to go over your budget.
When you spend money, put it in the "Actual" column for that month. Keeping track of your expenses is very important!
A thousand or two in repairs every year can be cheaper than buying a new car. A trip that will cost you $50 in fuel actually costs about $100 due to wearing out your tyres, engine, transmission, etc and reducing the value of the car generally.Īlso keeping an old car running can save money if it does not cost too much in fuel and repairs. Owning and running a car is a big expense that you can look at closely.Ī rough rule of thumb is to take the cost of fuel and double it. If your house is far from work, rent it out (to someone reliable!) and use that money to rent a place near work.
#PERSONAL BUDGET WORKBOOK INSTALL#
Do you own your own house? Install solar to save on electricity.Relocate closer to work to save transport costs.If you have high credit card interest, shop around for better rates.Get quotes for replacing your insurance policies.Cut back monthly subscriptions, do you really all of them?.Review your smart phone and home phone plans.Walk rather than drive short distances, it is cheaper and healthier.Is it cheaper to use public transport or to drive?.Cook food in bulk and store it in the freezer.Stop eating out so much, home cooked meals are healthier anyway.Buy healthy snacks to replace junk food.Drink water, it is cheaper and healthier than sugary drinks.Go over your budget and think carefully how you can reduce each item. What if you don't have money left over? Well, you can: That is OK, it is part of your learning experience. Expenses are going to come along that you didn't think of. Now do totals, put in your income and find what is left each month:Īlso, your first budget may not be very realistic. in short any need or want that is not monthly: Then include budgets for Christmas, birthdays, expenses that come up yearly or quarterly. Budget for the Whole Yearįirst copy your single month to every month of the year: How did you go? You might need to cut your amounts back a little. Your Turn: Complete your list of wants and needs, and compare it to your income, hopefully there is some left too.
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